Japanese Exchange Highlights 3 Growth Stocks With Strong Insider Ownership

Japan's stock markets have been on the rise, with the Nikkei 225 Index gaining 2.45% and the broader TOPIX Index up 0.45%, supported by a weaker yen that enhances export profitability. In this environment, growth companies with strong insider ownership can offer unique insights into potential opportunities, as high insider stakes often indicate confidence in a company's future prospects and alignment of interests with shareholders.

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%	40.2%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
AeroEdge (TSE:7409)	10.7%	25.3%
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.

We're going to check out a few of the best picks from our screener tool.

World (TSE:3612)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: World Co., Ltd. operates in the apparel and fashion industry, engaging in planning, manufacturing, retailing, selling, and importing/exporting products both in Japan and internationally with a market cap of ¥72.33 billion.

Operations: World Co., Ltd.'s revenue is primarily generated through its subsidiaries' activities in planning, manufacturing, retailing, selling, and importing/exporting apparel and fashion products across domestic and international markets.

Insider Ownership: 14.7%

World Co., Ltd. shows potential as a growth company with high insider ownership, supported by earnings growth of 37.3% last year and forecasted annual profit growth of 23.6%, outpacing the Japanese market's 8.8%. Despite trading at 80.3% below estimated fair value, revenue is expected to grow modestly at 5.4% annually, slightly above the market average but slower than desired for rapid expansion. Recent sales figures indicate stable performance, though debt levels remain a concern.

• Dive into the specifics of World here with our thorough growth forecast report.
• According our valuation report, there's an indication that World's share price might be on the cheaper side.

Plus Alpha ConsultingLtd (TSE:4071)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Plus Alpha Consulting Co., Ltd. offers marketing solutions and has a market cap of ¥91.24 billion.

Operations: The company generates revenue from HR Solutions amounting to ¥9.27 billion.

Insider Ownership: 39.4%

Plus Alpha Consulting Ltd. is trading at 50.9% below its estimated fair value, with analysts predicting a 46.4% price increase. Revenue is expected to grow at 14.8% annually, surpassing the Japanese market average of 4.3%, while earnings are projected to rise by 18.6%, outpacing the market's growth rate of 8.8%. Despite no recent insider trading activity, the company's return on equity is forecasted to reach a high level of 26.3%.

• Unlock comprehensive insights into our analysis of Plus Alpha ConsultingLtd stock in this growth report.
• The valuation report we've compiled suggests that Plus Alpha ConsultingLtd's current price could be quite moderate.

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 capitalization of ¥20.40 billion.

Operations: The company's revenue is derived from its segments, with Mobile generating ¥382.95 million, Fin Tech contributing ¥772.29 million, and Internet Services accounting for ¥1.24 billion.

Insider Ownership: 17.3%

Rakuten Group is trading significantly below its estimated fair value, with earnings projected to grow at a robust 79.35% annually, indicating strong growth potential despite a volatile share price. The company is expected to become profitable in the next three years, outpacing average market growth. However, revenue growth of 7.5% annually lags behind high-growth benchmarks but remains above the Japanese market average. Recent presentations at international showcases underscore its strategic visibility efforts.

• Click here to discover the nuances of Rakuten Group with our detailed analytical future growth report.
• Upon reviewing our latest valuation report, Rakuten Group's share price might be too pessimistic.

Turning Ideas Into Actions

• Embark on your investment journey to our 101 Fast Growing Japanese Companies With High Insider Ownership selection here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Looking For Alternative Opportunities?

• 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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