Rakuten Group Leads Three Japanese Growth Stocks With High Insider Ownership

Amidst a backdrop of mixed performances in global markets, Japan's stock market has shown resilience with the Nikkei 225 Index registering modest gains. This stability presents an opportune moment to explore growth companies in Japan, particularly those with high insider ownership, which often signals strong confidence in the company’s future from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
SHIFT (TSE:3697)	35.4%	26.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
Medley (TSE:4480)	34%	28.7%
Hottolink (TSE:3680)	27%	57.3%
Micronics Japan (TSE:6871)	15.3%	39.8%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	44.6%
ExaWizards (TSE:4259)	24.8%	91.1%
Soiken Holdings (TSE:2385)	19.8%	118.4%
Soracom (TSE:147A)	17.2%	54.1%
freee K.K (TSE:4478)	24%	81%

Click here to see the full list of 98 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users globally, with a market capitalization of approximately ¥1.77 trillion.

Operations: The company generates revenue through its diverse operations in online retail, financial services, digital media, and telecommunications.

Insider Ownership: 17.3%

Rakuten Group, a notable entity in Japan's e-commerce landscape, demonstrates promising growth with its revenue forecast to increase by 7.4% annually, outpacing the Japanese market average of 4.1%. Despite this, its revenue growth rate remains below the high-growth benchmark of 20% per year. The company is expected to turn profitable within the next three years, showcasing an earnings growth projection of approximately 83.88% annually. Recent financial maneuvers include a substantial fixed-income offering totaling US$1.99 billion aimed at bolstering its financial structure. However, insider trading activity has been minimal over the past three months, reflecting stable but not aggressive insider confidence.

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

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services across Japan with a market capitalization of approximately ¥474.13 billion.

Operations: The firm specializes in consulting across various sectors in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting, with a projected annual earnings growth of 18.4%, is outperforming the Japanese market average of 8.9%. The company's revenue growth also surpasses the market, expected at 18.3% annually compared to the market's 4.1%. Despite these strong growth indicators and a forecasted high Return on Equity of 33.4%, its share price remains highly volatile and trades at a significant discount to estimated fair value, suggesting potential undervaluation. Recent actions include completing a share buyback for ¥3.60 billion, aimed at enhancing shareholder returns and capital efficiency.

• Take a closer look at BayCurrent Consulting's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential undervaluation of BayCurrent Consulting shares in the market.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a Japanese company that specializes 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 ¥1.23 trillion.

Operations: The company generates revenue primarily through Digital Content at ¥119.84 billion, followed by Amusement Facilities at ¥19.34 billion, and Amusement Equipment at ¥9.02 billion.

Insider Ownership: 11.5%

Capcom, a prominent Japanese gaming company, demonstrates moderate growth with earnings expected to rise by 8.91% annually, slightly outpacing the market's 8.9%. Although revenue growth at 6.1% per year is not extraordinarily high, it still exceeds the Japanese market average of 4.1%. The company's Return on Equity is anticipated to be strong at 21% in three years. Recently, Capcom has focused on governance and incentive alignment, evidenced by their AGM agenda proposing a performance-linked stock remuneration system for directors.

• Click to explore a detailed breakdown of our findings in Capcom's earnings growth report.
• Our valuation report unveils the possibility Capcom's shares may be trading at a premium.

Taking Advantage

• Navigate through the entire inventory of 98 Fast Growing Japanese Companies With High Insider Ownership here.
• 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com