Exploring These 3 High Growth Tech Stocks in Japan

Japan’s stock markets have shown significant gains recently, with the Nikkei 225 Index rising by 3.1% and the broader TOPIX Index up by 2.8%, buoyed by a weakening yen following the U.S. Federal Reserve's substantial rate cut of 50 basis points. This favorable environment for equities has investors increasingly focused on high-growth tech stocks, which are often characterized by strong revenue growth, innovative products or services, and a robust market position—attributes that can be particularly advantageous in a dynamic economic landscape like Japan's.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Hottolink	50.99%	61.55%	★★★★★★
Cyber Security Cloud	20.71%	25.73%	★★★★★☆
eWeLLLtd	26.52%	27.53%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
GMO AD Partners	69.79%	97.87%	★★★★★☆
Bengo4.comInc	20.76%	46.76%	★★★★★★
Kanamic NetworkLTD	20.75%	28.25%	★★★★★★
Mental Health TechnologiesLtd	27.88%	79.61%	★★★★★★
ExaWizards	21.96%	75.16%	★★★★★★
Money Forward	20.68%	68.12%	★★★★★★

Click here to see the full list of 124 stocks from our Japanese High Growth Tech and AI Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

OMRON (TSE:6645)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OMRON Corporation operates in industrial automation, device and module solutions, social systems, and healthcare sectors globally with a market cap of ¥1.28 trillion.

Operations: OMRON Corporation generates revenue primarily from its Industrial Automation Business (¥373.70 billion), Healthcare Business (¥150.40 billion), Social Systems, Solutions and Service Business (¥156.85 billion), and Devices & Module Solutions Business (¥143.69 billion).

OMRON's trajectory in the high-tech sector of Japan is marked by its aggressive investment in R&D, which is crucial for maintaining a competitive edge. Despite currently being unprofitable, the company’s revenue growth outpaces the Japanese market average at 5.6% annually compared to 4.2%. This growth is underpinned by a significant forecast of earnings expansion at an annual rate of 46.2%, signaling potential profitability within three years. Moreover, OMRON's focus on innovation could be pivotal as it navigates through technological advancements and market demands, despite a low forecasted return on equity of 7.6%. These figures highlight both the challenges and opportunities OMRON faces in evolving its business model to potentially capitalize on future tech trends.

• Delve into the full analysis health report here for a deeper understanding of OMRON.

• Gain insights into OMRON's historical performance by reviewing our past performance report.

Marvelous (TSE:7844)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Marvelous Inc. (TSE:7844) specializes in the planning, development, production, marketing, and sale of game software for home-use game machines and has a market cap of ¥36.34 billion.

Operations: The company generates revenue through three primary segments: Amusement Business (¥8.95 billion), Music Video Business (¥4.96 billion), and Digital Content Business (¥14.50 billion). The Digital Content segment is the largest contributor to its revenue streams.

Marvelous, navigating Japan's high-tech landscape, shows promise with a revenue growth rate of 6.9% per year, surpassing the domestic market average of 4.2%. This growth is complemented by an impressive forecast of earnings expansion at 67.5% annually. Despite current unprofitability, such robust projections hint at potential profitability within the next three years. The company's commitment to innovation is evident in its R&D expenditures which are strategically aligned to bolster future capabilities and respond effectively to evolving market demands.

• Get an in-depth perspective on Marvelous' performance by reading our health report here.

• Examine Marvelous' past performance report to understand how it has performed in the past.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is engaged in the planning, development, manufacturing, sales, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.43 trillion.

Operations: Capcom generates revenue primarily from Digital Content, which contributes ¥103.38 billion, followed by Amusement Facilities at ¥20.09 billion and Amusement Equipment at ¥10.34 billion. The company's diversified portfolio includes home video games, online games, mobile games, and arcade games marketed both domestically and internationally.

Capcom, navigating the competitive landscape of Japan's tech industry, is poised for notable growth with its revenue expected to increase by 9.6% annually, outpacing the broader Japanese market's growth of 4.2%. This growth trajectory is bolstered by a projected annual earnings increase of 14.5%, which surpasses the national average of 8.6%. The firm has strategically prioritized R&D investments, dedicating significant resources to foster innovation and maintain its competitive edge in gaming and digital content development. These efforts are evident from recent financial disclosures indicating robust funding towards new technologies and game development, ensuring Capcom remains at the forefront of industry advancements and consumer expectations.

• Unlock comprehensive insights into our analysis of Capcom stock in this health report.

• Review our historical performance report to gain insights into Capcom's's past performance.

Summing It All Up

• Access the full spectrum of 124 Japanese High Growth Tech and AI Stocks by clicking on this link.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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