Stock Analysis

Kasumigaseki CapitalLtd And 2 Other Japanese Growth Stocks With Strong Insider Ownership

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Japan's stock markets recently faced volatility due to political changes, with the Nikkei 225 and TOPIX indices experiencing declines as new leadership adopted a more dovish economic stance. Despite these fluctuations, the focus on companies with high insider ownership remains significant for investors seeking alignment of interests between management and shareholders. In such an environment, growth companies like Kasumigaseki Capital Ltd., where insiders hold substantial stakes, can be appealing as they often indicate confidence in the company's long-term prospects and resilience amidst market uncertainties.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings 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%
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 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.

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 ¥174.34 billion.

Operations: Kasumigaseki Capital Co., Ltd.'s revenue segments include real estate consulting services in Japan.

Insider Ownership: 34.7%

Kasumigaseki Capital Ltd. is experiencing robust growth, with revenue expected to increase by 26.3% annually, outpacing the broader Japanese market. Earnings are also projected to grow significantly at 38.5% per year over the next three years. Despite recent shareholder dilution and high share price volatility, the company's strategic expansion into luxury hospitality through seven x seven Ishigaki reflects its commitment to enhancing its growth trajectory and redefining luxury experiences in Japan's evolving market landscape.

TSE:3498 Ownership Breakdown as at Oct 2024

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. is a company that plans, develops, and operates marketplace applications in Japan and the United States with a market cap of ¥434.96 billion.

Operations: The company's revenue segments include ¥43.65 billion from the United States and ¥138.11 billion from Japan.

Insider Ownership: 36%

Mercari, Inc. demonstrates potential as a growth company with high insider ownership in Japan. The company's earnings are projected to grow at 17.7% annually, surpassing the Japanese market average of 8.7%. Despite its volatile share price and trading at 40.8% below estimated fair value, Mercari's revenue is expected to grow faster than the market at 6.9% per year, supported by guidance for fiscal year revenues between ¥200 billion and ¥210 billion (US$1.34 billion).

TSE:4385 Earnings and Revenue Growth as at Oct 2024

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.18 trillion.

Operations: Revenue Segments (in millions of ¥): Semiconductor-related products contribute ¥92,400, display-related products account for ¥6,800, and other precision equipment adds up to ¥4,200.

Insider Ownership: 11.1%

Lasertec Corporation exemplifies growth potential in Japan, with earnings projected to grow at 15.8% annually, outpacing the Japanese market average of 8.7%. Despite recent executive changes and share price volatility, its revenue is expected to increase by 13.2% per year, faster than the market's 4.2%. The introduction of SICA108 highlights Lasertec's innovation in SiC wafer inspection technology, supporting its competitive edge and contributing to anticipated net sales of ¥240 billion (US$1.61 billion) for fiscal year ending June 2025.

TSE:6920 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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.

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