Stock Analysis

3 Japanese Growth Companies With High Insider Ownership And Up To 18% Revenue Growth

Published October 08, 2024

Amid recent political developments and shifts in monetary policy, Japan's stock markets have experienced some volatility, with indices like the Nikkei 225 and TOPIX registering declines. As investors navigate these changes, growth companies with high insider ownership are often considered attractive due to their potential for alignment between management and shareholder interests, particularly when they demonstrate strong revenue growth.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	26.1%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	38.5%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.5%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Soracom (TSE:147A)	16.5%	54.1%
freee K.K (TSE:4478)	23.9%	74.1%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

NEXTAGE (TSE:3186)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: NEXTAGE Co., Ltd. operates in Japan, focusing on the sale of new and used cars, with a market cap of ¥118.85 billion.

Operations: Revenue Segments (in millions of ¥):

Insider Ownership: 38.3%

Revenue Growth Forecast: 11.4% p.a.

NEXTAGE is poised for substantial growth with earnings expected to rise significantly at 23.7% annually, outpacing the Japanese market. Despite a volatile share price and declining profit margins, it trades well below its estimated fair value. Revenue growth of 11.4% per year surpasses the market average but remains under 20%. The company faces challenges with debt coverage and dividend sustainability, while insider trading activity has been minimal recently.

TSE:3186 Earnings and Revenue Growth as at Oct 2024

freee K.K (TSE:4478)

Simply Wall St Growth Rating: ★★★★★☆

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market cap of ¥169.44 billion.

Operations: Revenue Segments (in millions of ¥): The company generates revenue primarily through its cloud-based accounting and HR software solutions in Japan.

Insider Ownership: 23.9%

Revenue Growth Forecast: 18.2% p.a.

freee K.K. is set for strong growth with expected earnings increases of 74.08% annually, surpassing market averages, and revenue growth forecast at 18.2% per year. Trading significantly below its estimated fair value, the company anticipates profitability within three years. Recent leadership changes include Yasuhiro Kimura's appointment as CPO to drive product strategies further. Despite share price volatility, insider trading activity has been minimal recently, indicating stability in insider sentiment.

TSE:4478 Ownership Breakdown as at Oct 2024

KeePer Technical Laboratory (TSE:6036)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: KeePer Technical Laboratory Co., Ltd. operates in Japan, focusing on the development, manufacturing, and sale of car coatings, car washing chemicals and equipment, with a market cap of ¥117.22 billion.

Operations: Revenue segments for TSE:6036 include car coatings, car washing chemicals, and equipment sales in Japan.

Insider Ownership: 29.6%

Revenue Growth Forecast: 15.5% p.a.

KeePer Technical Laboratory is experiencing robust growth, with earnings projected to rise 15.88% annually, outpacing the Japanese market average. The company is trading at a substantial discount to its estimated fair value and has shown consistent revenue increases, including a 12.3% year-over-year sales boost in August 2024. Recent expansions include new store openings in strategic locations like Nagoya and Tokyo, enhancing its market presence without significant insider trading activity reported recently.

TSE:6036 Earnings and Revenue Growth as at Oct 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.

Valuation is complex, but we're here to simplify it.

Discover if NEXTAGE might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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