Stock Analysis

3 Japanese Growth Stocks With Up To 33% Insider Ownership

TSE:6855
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Japan’s stock markets have recently experienced significant volatility, driven by a rebounding yen and concerns over global growth. Despite these fluctuations, the Nikkei 225 Index and the broader TOPIX Index managed to recoup much of their losses by week’s end. In this environment, growth companies with high insider ownership can offer unique investment opportunities. High insider ownership often indicates confidence in a company's future prospects, aligning management's interests with those of shareholders.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Hottolink (TSE:3680)27%62.8%
Micronics Japan (TSE:6871)15.3%32.9%
Kasumigaseki CapitalLtd (TSE:3498)34.8%43.3%
Medley (TSE:4480)34%28.7%
SHIFT (TSE:3697)35.4%32.8%
ExaWizards (TSE:4259)21.8%91.1%
Money Forward (TSE:3994)21.4%66.9%
Astroscale Holdings (TSE:186A)20.9%90%
AeroEdge (TSE:7409)10.7%28.5%
freee K.K (TSE:4478)32.8%72.9%

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.

Loadstar Capital K.K (TSE:3482)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Loadstar Capital K.K. operates in the real estate investment sector in Japan and has a market cap of ¥38.37 billion.

Operations: Loadstar Capital K.K. generates revenue primarily through its real estate investment activities in Japan.

Insider Ownership: 33.8%

Loadstar Capital K.K. exhibits strong growth potential with earnings forecasted to grow 24.33% per year, significantly outpacing the JP market's 8.6%. Revenue is also expected to rise by 21.9% annually, surpassing the market average of 4.3%. Despite high volatility in its share price and debt concerns, it trades at a substantial discount to its estimated fair value and has shown impressive profit growth of 47.1% over the past year. Recent board decisions include issuing stock options to employees, indicating confidence in future performance.

TSE:3482 Earnings and Revenue Growth as at Aug 2024
TSE:3482 Earnings and Revenue Growth as at Aug 2024

Japan Electronic Materials (TSE:6855)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Electronic Materials Corporation manufactures and sells probe cards and electron tube parts both in Japan and internationally, with a market cap of ¥37.73 billion.

Operations: Japan Electronic Materials Corporation generates revenue primarily from the manufacture and sale of probe cards and electron tube parts, serving both domestic and international markets.

Insider Ownership: 13.1%

Japan Electronic Materials is a growth company with high insider ownership, forecasted to achieve annual earnings growth of 34.5%, significantly outpacing the JP market's 8.6%. Revenue is expected to grow at 14.7% per year, faster than the market average of 4.3%. Despite lower profit margins this year (6.9%) compared to last year (11.3%) and recent share price volatility, it trades at a substantial discount to its estimated fair value.

TSE:6855 Earnings and Revenue Growth as at Aug 2024
TSE:6855 Earnings and Revenue Growth as at Aug 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 ¥2.55 trillion.

Operations: Revenue from the design, manufacture, and sale of inspection and measurement equipment stands at ¥213.51 billion.

Insider Ownership: 12.1%

Lasertec Corporation, with significant insider ownership, has seen earnings grow by 28% over the past year and is forecasted to achieve annual profit growth of 19.41%, outpacing the JP market's 8.6%. Despite high share price volatility in recent months, its revenue is expected to grow at 15.7% per year, faster than the market average of 4.3%. Recent sales figures for its ACTIS Series show substantial growth compared to the previous fiscal year.

TSE:6920 Ownership Breakdown as at Aug 2024
TSE:6920 Ownership Breakdown as at Aug 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.

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