Stock Analysis

Japanese Growth Companies With High Insider Ownership For September 2024

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As Japan's stock markets wrap up a volatile month, the Nikkei 225 Index and the broader TOPIX Index have shown resilience, recovering most of their earlier losses. Amid this backdrop, identifying growth companies with high insider ownership can offer unique investment opportunities, as these firms often benefit from strong internal confidence and alignment with shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%32.7%
Hottolink (TSE:3680)27%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.5%
Medley (TSE:4480)34%30.4%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%63%
Money Forward (TSE:3994)21.4%68.1%
Astroscale Holdings (TSE:186A)21.3%90%
AeroEdge (TSE:7409)10.7%25.3%
Soracom (TSE:147A)16.5%54.1%

Click here to see the full list of 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. plans, develops, and operates marketplace applications in Japan and the United States with a market cap of ¥399.79 billion.

Operations: The company's revenue segments comprise ¥43.65 billion from the United States and ¥138.11 billion from Japan.

Insider Ownership: 36%

Earnings Growth Forecast: 19.6% p.a.

Mercari, a growth company with high insider ownership in Japan, has provided guidance for fiscal 2025 expecting revenue between ¥200 billion and ¥210 billion and core operating profit between ¥22 billion and ¥25 billion. Despite recent share price volatility, its earnings have grown 66.5% annually over the past five years. Forecasts indicate revenue growth of 8% per year, outpacing the JP market's 4.2%, with earnings projected to grow at 19.6% annually.

TSE:4385 Earnings and Revenue Growth as at Sep 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc., with a market cap of ¥725.69 billion, provides consulting services in Japan.

Operations: BayCurrent Consulting, Inc. generates revenue from various consulting services in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.6% p.a.

BayCurrent Consulting is trading at 44.4% below its estimated fair value, with revenue expected to grow 18.5% annually, faster than the JP market's 4.2%. Despite high share price volatility recently, earnings are forecast to grow at 18.6% per year and return on equity is projected to reach a robust 34.7% in three years. Earnings grew by 16.8% last year, reflecting strong performance without significant insider trading activity over the past three months.

TSE:6532 Earnings and Revenue Growth as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is involved in the planning, development, manufacturing, selling, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.33 trillion.

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

Insider Ownership: 11.5%

Earnings Growth Forecast: 14.5% p.a.

Capcom's earnings are forecast to grow 14.45% annually, outpacing the JP market's 8.6%, with revenue expected to increase by 9.5% per year, also above the market average of 4.2%. The company's return on equity is projected to reach a high of 20.4% in three years. Despite recent share price volatility and no significant insider trading activity over the past three months, Capcom remains a strong growth candidate with substantial insider ownership.

TSE:9697 Earnings and Revenue Growth as at Sep 2024

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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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