June 2024 Insight Into High Insider Ownership Growth Stocks On The Japanese Exchange
Reviewed by Simply Wall St
As of June 2024, Japan's stock markets are presenting a mixed landscape, with the Nikkei 225 Index seeing modest gains while the broader TOPIX Index has declined slightly. This nuanced performance comes amid strengthening services sector activity and a tentative rally in the yen, which could influence market dynamics moving forward. In such an environment, growth companies with high insider ownership might offer interesting opportunities as these firms often benefit from aligned interests between shareholders and management, potentially leading to more resilient performance in uncertain times.
Top 10 Growth Companies With High Insider Ownership In Japan
| Name | Insider Ownership | Earnings Growth |
| SHIFT (TSE:3697) | 35.4% | 26.8% |
| Kanamic NetworkLTD (TSE:3939) | 25% | 28.9% |
| Hottolink (TSE:3680) | 27% | 57.3% |
| Medley (TSE:4480) | 34% | 28.7% |
| Micronics Japan (TSE:6871) | 15.3% | 39.7% |
| Kasumigaseki CapitalLtd (TSE:3498) | 34.8% | 44.6% |
| ExaWizards (TSE:4259) | 24.8% | 67.1% |
| Soiken Holdings (TSE:2385) | 19.8% | 118.4% |
| Soracom (TSE:147A) | 17.2% | 54.1% |
| freee K.K (TSE:4478) | 24% | 80.9% |
Let's explore several standout options from the results in the screener.
Lifedrink Company (TSE:2585)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Lifedrink Company, Inc. is a beverage manufacturer and seller based in Japan, with a market capitalization of approximately ¥80.30 billion.
Operations: The firm operates primarily in the beverage production and sales sector in Japan.
Insider Ownership: 16.8%
Lifedrink Company, a growth-oriented firm in Japan with high insider ownership, shows promising financial trends despite some challenges. Its revenue is expected to grow at 6.1% annually, outpacing the Japanese market average of 4%. Earnings have surged by 52% over the past year and are projected to increase by 9.06% annually. However, the company's share price has been highly volatile recently and it carries a high level of debt. Notably, its Return on Equity is anticipated to reach an impressive 23.1% in three years, underscoring potential efficiency gains despite its current valuation being 7.9% below estimated fair value.
- Click to explore a detailed breakdown of our findings in Lifedrink Company's earnings growth report.
- Insights from our recent valuation report point to the potential overvaluation of Lifedrink Company shares in the market.
freee K.K (TSE:4478)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Freee K.K., a company based in Japan, specializes in providing cloud-based accounting and HR software solutions, with a market capitalization of approximately ¥137.79 billion.
Operations: The firm generates its revenue primarily from cloud-based accounting and HR software solutions.
Insider Ownership: 24%
freee K.K., a Japanese growth company with high insider ownership, is trading at 47.8% below its estimated fair value, highlighting a potential undervaluation. The company's revenue is expected to grow by 21.4% annually, significantly outpacing the broader Japanese market's growth rate of 4%. Although its Return on Equity is forecasted to be low at 18.6% in three years, freee K.K. is anticipated to become profitable within the same timeframe with earnings projected to increase by 80.93% annually. Recent board meetings have focused on strategic share exchanges and issuing new restricted shares, indicating active management involvement in steering future growth paths.
- Get an in-depth perspective on freee K.K's performance by reading our analyst estimates report here.
- Our expertly prepared valuation report freee K.K implies its share price may be lower than expected.
Japan Electronic Materials (TSE:6855)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Japan Electronic Materials Corporation specializes in the production and distribution of probe cards and electron tube parts, operating both domestically and internationally, with a market capitalization of approximately ¥41.87 billion.
Operations: The company's revenue is primarily derived from the sale of probe cards and electron tube parts across both domestic and international markets.
Insider Ownership: 14.2%
Japan Electronic Materials, despite a highly volatile share price and lower profit margins this year (3.6%) compared to last (12.6%), is positioned for robust growth. The company's earnings are expected to surge by 44.26% annually, outperforming the broader Japanese market forecast of 8.7%. Additionally, it trades at an attractive 18.9% below its estimated fair value, suggesting potential undervaluation in a market where insider ownership aligns interests with external shareholders.
- Delve into the full analysis future growth report here for a deeper understanding of Japan Electronic Materials.
- The analysis detailed in our Japan Electronic Materials valuation report hints at an inflated share price compared to its estimated value.
Taking Advantage
- Discover the full array of 104 Fast Growing Japanese Companies With High Insider Ownership right here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Contemplating Other Strategies?
- 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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About TSE:2585
Reasonable growth potential with adequate balance sheet.
