Japanese Exchange Highlights 3 Growth Companies With Significant Insider Ownership

Japan's stock markets have recently experienced significant volatility, driven by a rebounding yen and concerns over global growth. Despite these fluctuations, the market has shown resilience, with central bank comments helping to stabilize investor sentiment. In this environment, companies with high insider ownership often attract attention as they can indicate strong confidence from those who know the business best. Here are three growth companies in Japan that stand out for their substantial insider ownership.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	62.8%
Micronics Japan (TSE:6871)	15.3%	32.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	28.7%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	20.9%	90%
Soracom (TSE:147A)	16.5%	54.1%
freee K.K (TSE:4478)	32.8%	72.8%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. offers e-commerce, fintech, digital content, and communications services to users in Japan and internationally with a market cap of ¥1.87 trillion.

Operations: Revenue segments include Mobile (¥382.95 million), Fin Tech (¥772.29 million), and Internet Services (¥1.24 billion).

Insider Ownership: 17.3%

Rakuten Group is forecast to grow earnings by 82.86% annually and become profitable within three years, outpacing average market growth. Revenue is expected to increase at 7.7% per year, surpassing the JP market's 4.3% growth rate but slower than high-growth benchmarks. Despite substantial insider ownership, there has been no significant insider trading activity in the past three months. Return on equity is projected to be modest at 10.2%.

• Click here to discover the nuances of Rakuten Group with our detailed analytical future growth report.
• The valuation report we've compiled suggests that Rakuten Group's current price could be inflated.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment in Japan and internationally with a market cap of ¥2.49 trillion.

Operations: With a revenue of ¥213.51 billion, the company's primary business segment is the design, manufacture, and sale of inspection and measurement equipment in both domestic and international markets.

Insider Ownership: 12.1%

Lasertec's earnings are forecast to grow 19.97% annually, outpacing the JP market's 8.6%. Despite high volatility in share price, the company has shown strong revenue growth, with sales reaching ¥157.20 billion for the first three quarters of fiscal year 2024. Insider ownership is substantial with no significant insider trading activity recently. Return on equity is projected to be very high at 42.4% in three years, indicating robust profitability prospects.

• Click here and access our complete growth analysis report to understand the dynamics of Lasertec.
• Our expertly prepared valuation report Lasertec implies its share price may be too high.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally with a market cap of ¥1.25 trillion.

Operations: The company's revenue segments include Digital Content at ¥103.38 billion, Amusement Equipment at ¥10.34 billion, and Amusement Facilities at ¥20.09 billion.

Insider Ownership: 11.5%

Capcom's earnings are projected to grow 14.44% annually, surpassing the JP market's 8.6% growth rate. The company's revenue is expected to increase by 9.5% per year, also outpacing the market's 4.3%. Insider ownership remains significant, although there has been no substantial insider trading activity recently. Despite a highly volatile share price over the past three months, Capcom’s return on equity is forecasted to be strong at 20.4% in three years, reflecting solid profitability expectations.

• Take a closer look at Capcom's potential here in our earnings growth report.
• The analysis detailed in our Capcom valuation report hints at an inflated share price compared to its estimated value.

Make It Happen

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Ready To Venture Into Other Investment Styles?

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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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