Top Growth Companies With High Insider Ownership On The Japanese Exchange

The Japanese stock market has recently experienced sharp losses, with the Nikkei 225 Index falling 6.0% and the broader TOPIX Index down 5.6%, influenced by pressures on technology stocks and a strengthening yen impacting exporters. Amid this backdrop, identifying growth companies with high insider ownership can be particularly compelling for investors seeking stability and potential upside in a volatile environment. In this article, we will explore three top growth companies listed on the Japanese exchange that boast significant insider ownership, a factor often indicative of strong confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	59.7%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	28.7%
Micronics Japan (TSE:6871)	15.3%	39.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
SHIFT (TSE:3697)	35.4%	32.8%
Money Forward (TSE:3994)	21.4%	66.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Astroscale Holdings (TSE:186A)	20.9%	90%
freee K.K (TSE:4478)	32.8%	72.9%

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

We'll examine a selection from our screener results.

Kasumigaseki CapitalLtd (TSE:3498)

Simply Wall St Growth Rating: ★★★★★★

Overview: Kasumigaseki Capital Co., Ltd. operates in the real estate consulting sector in Japan and has a market cap of ¥126.89 billion.

Operations: Kasumigaseki Capital Co., Ltd. generates revenue through its real estate consulting operations in Japan.

Insider Ownership: 34.8%

Kasumigaseki Capital Ltd. is poised for substantial growth, with revenue projected to increase by 33.5% annually, outpacing the broader Japanese market's 4.3%. Earnings are forecasted to grow significantly at 43.3% per year over the next three years compared to the market's 8.9%. Despite recent share price volatility and past shareholder dilution, its high insider ownership aligns management interests with shareholders, potentially driving long-term value creation.

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

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications services both in Japan and internationally with a market cap of ¥1.90 trillion.

Operations: Revenue Segments (in millions of ¥): E-commerce: 1,680,000; Fintech: 1,200,000; Digital Content: 320,000; Communications: 480,000. Rakuten generates revenue from e-commerce (¥1.68 billion), fintech (¥1.20 billion), digital content (¥0.32 billion), and communications services (¥0.48 billion).

Insider Ownership: 17.3%

Rakuten Group is forecast to achieve double-digit revenue growth for 2024, excluding its securities business. The company is expected to become profitable within three years, with earnings projected to grow at 81.78% annually. Revenue growth of 7.8% per year outpaces the broader Japanese market but remains below the high-growth threshold of 20%. Despite a low forecasted Return on Equity (8.9%), substantial insider ownership aligns management interests with shareholders' long-term goals.

• Get an in-depth perspective on Rakuten Group's performance by reading our analyst estimates report here.
• The valuation report we've compiled suggests that Rakuten Group's current price could be inflated.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global company involved in planning, developing, manufacturing, selling, and distributing home video games, online games, mobile games, and arcade games with a market cap of ¥1.27 trillion.

Operations: Capcom'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%

Capcom's earnings are forecast to grow at 14.33% per year, outpacing the broader Japanese market's 8.9% growth rate. Revenue is expected to increase by 9.5% annually, also surpassing market averages but falling short of high-growth benchmarks. Insider ownership aligns management and shareholder interests, though recent insider trading activity is minimal. The company's Return on Equity is projected to reach a robust 20.4% in three years, indicating strong profitability potential.

• Unlock comprehensive insights into our analysis of Capcom stock in this growth report.
• Upon reviewing our latest valuation report, Capcom's share price might be too optimistic.

Where To Now?

• Access the full spectrum of 100 Fast Growing Japanese Companies With High Insider Ownership by clicking on this link.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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