Top 3 Growth Companies With High Insider Ownership On Japanese Exchanges August 2024

In August 2024, Japan's stock markets experienced a significant rebound, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index rising by 7.9%. This positive momentum was driven by better-than-expected economic data from both Japan and the U.S., which alleviated recession concerns. In such an environment, growth companies with high insider ownership can be particularly appealing as they often signal strong confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.9%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 104 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 ¥2.04 trillion.

Operations: The company's revenue segments include e-commerce, fintech, digital content, and communications services provided to various users both domestically and internationally.

Insider Ownership: 17.3%

Rakuten Group, Inc. demonstrates significant growth potential with high insider ownership. Despite recent share price volatility, the company is forecast to achieve profitability within three years and expects earnings to grow at an impressive 82.86% annually. Revenue growth is projected at 7.7% per year, outpacing the Japanese market's average of 4.3%. However, return on equity is anticipated to remain low at 10.2%, indicating potential challenges in generating high returns for shareholders.

• Delve into the full analysis future growth report here for a deeper understanding of Rakuten Group.
• The analysis detailed in our Rakuten Group valuation report hints at an inflated share price compared to its estimated value.

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 ¥2.59 trillion.

Operations: The company's revenue segment is ¥213.51 billion from the design, manufacture, and sale of inspection and measurement equipment.

Insider Ownership: 11.8%

Lasertec Corporation, a growth company with high insider ownership, has experienced significant earnings growth of 28% over the past year. Despite recent executive resignations, the company maintains strong financial health with forecasted revenue and earnings growth rates of 16.6% and 20% per year respectively, both surpassing market averages. Lasertec's new earnings guidance projects net sales of ¥240 billion and operating income of ¥104 billion for FY2025.

• Click here and access our complete growth analysis report to understand the dynamics of Lasertec.
• Upon reviewing our latest valuation report, Lasertec's share price might be too optimistic.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is involved 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 ¥1.33 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, with substantial insider ownership, is forecasted to achieve a return on equity of 20.4% in three years. Earnings are expected to grow at 14.4% annually, outpacing the JP market's 8.6%. Revenue growth is projected at 9.5% per year, also above the market average of 4.3%. Despite high volatility in its share price over the past three months, Capcom remains a strong contender in Japan’s growth sector with solid financial forecasts and no recent insider trading activity reported.

• Dive into the specifics of Capcom here with our thorough growth forecast report.
• Our valuation report unveils the possibility Capcom's shares may be trading at a premium.

Taking Advantage

• Take a closer look at our Fast Growing Japanese Companies With High Insider Ownership list of 104 companies 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.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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.

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