Mercari And Two More Japanese Exchange Growth Companies With Significant Insider Ownership

As global markets navigate through a period of mixed signals, with inflation and interest rate policies at the forefront of investor concerns, Japan's stock market presents a nuanced picture. The Nikkei 225 Index experienced slight declines while the broader TOPIX Index saw gains, highlighting an environment where careful selection of equities becomes paramount. In such a context, growth companies in Japan with high insider ownership may offer investors potential resilience and alignment of interests between shareholders and management.

Top 10 Growth Companies With High Insider Ownership In Japan

Click here to see the full list of 107 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. is a company that designs, develops, and operates the Mercari marketplace applications in Japan and the United States, with a market capitalization of approximately ¥342.46 billion.

Operations: The firm operates marketplace applications, primarily serving markets in Japan and the United States.

Insider Ownership: 36%

Mercari, a notable Japanese growth company with significant insider ownership, is implementing a pioneering business model by eliminating selling fees, contrasting sharply with industry norms. This strategic shift is expected to enhance user engagement and potentially increase market share. Despite its highly volatile share price recently, Mercari forecasts revenue of JPY 190 billion and an operating profit of JPY 16.5 billion for FY 2024. Earnings have surged by over 200% in the past year, with future earnings expected to grow at 19.1% annually—outpacing the broader Japanese market's growth rate.

• Unlock comprehensive insights into our analysis of Mercari stock in this growth report.
• According our valuation report, there's an indication that Mercari's share price might be on the expensive side.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates globally, offering e-commerce, fintech, digital content, and communications services with a market capitalization of approximately ¥1.81 trillion.

Operations: The company generates revenue through segments including e-commerce (¥1.13 billion), fintech (¥0.91 billion), digital content (¥0.31 billion), and communications (¥0.95 billion).

Insider Ownership: 17.3%

Rakuten Group, a Japanese growth company with high insider ownership, is navigating a complex financial landscape. Recently completing a $1.99 billion fixed-income offering and projecting double-digit revenue growth for FY 2024—excluding its volatile securities business—Rakuten is strategically positioning itself for profitability within three years. Despite trading at 77.7% below estimated fair value and forecasted low return on equity at 8.8%, its revenue growth of 7.4% annually outpaces the broader Japanese market's 4%.

• Delve into the full analysis future growth report here for a deeper understanding of Rakuten Group.
• Our expertly prepared valuation report Rakuten Group implies its share price may be lower than expected.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a Japanese company that engages in the planning, development, manufacturing, selling, and distribution of home video games, online games, mobile games, and arcade games globally with a market capitalization of approximately ¥1.26 trillion.

Operations: The company generates its revenues from the sale and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally.

Insider Ownership: 11.5%

Capcom, a Japanese growth company with significant insider ownership, has shown mixed financial performance. While its earnings are expected to grow by 8.75% annually, this growth is modest compared to high-growth benchmarks. Its revenue growth forecast of 5.8% per year also trails the ambitious industry standards but outpaces the broader Japanese market's 4%. Recent events include a fiscal year report on May 09, 2024, and participation in GDC 2024, highlighting Capcom's active engagement in industry dialogues and transparency in financial communications.

• Dive into the specifics of Capcom here with our thorough growth forecast report.
• The analysis detailed in our Capcom valuation report hints at an inflated share price compared to its estimated value.

Seize The Opportunity

• Unlock our comprehensive list of 107 Fast Growing Japanese Companies With High Insider Ownership by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• 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.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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