Exploring Three High-Growth Japanese Companies With Substantial Insider Ownership On The Tokyo Stock Exchange

Despite a backdrop of economic contraction and modest upward pressure on yields, Japanese equities have shown resilience, with the Nikkei 225 Index gaining notably last week. In such an environment, companies with high insider ownership can be particularly compelling as they often demonstrate strong alignment between management’s interests and those of shareholders, potentially enhancing stability and confidence in turbulent times.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
SHIFT (TSE:3697)	35.4%	27.2%
Hottolink (TSE:3680)	27%	57.3%
Micronics Japan (TSE:6871)	15.3%	39.7%
Kasumigaseki CapitalLtd (TSE:3498)	35.4%	44.6%
ExaWizards (TSE:4259)	24.8%	80.2%
Money Forward (TSE:3994)	21.4%	63.5%
Medley (TSE:4480)	34%	24.4%
Soiken Holdings (TSE:2385)	19.8%	118.4%
Soracom (TSE:147A)	17.2%	59.1%
freee K.K (TSE:4478)	24%	82.7%

Click here to see the full list of 107 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Kusuri No Aoki Holdings (TSE:3549)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kusuri No Aoki Holdings Co., Ltd. operates primarily in Japan, focusing on the retail of pharmaceuticals, cosmetics, and daily goods with a market capitalization of approximately ¥296.18 billion.

Operations: The company primarily generates revenue from the retail sales of pharmaceuticals, cosmetics, and daily goods.

Insider Ownership: 28.9%

Kusuri No Aoki Holdings, a growth-oriented company in Japan with high insider ownership, shows promising financial forecasts. The company's revenue is expected to grow by 7% annually, outpacing the Japanese market average of 3.9%. More impressively, its earnings are projected to increase significantly at a rate of 21.8% per year, well above the market's 8.4%. However, it faces challenges with a low forecasted Return on Equity of 14% and declining profit margins from last year’s 3.9% to this year's 2%.

• Take a closer look at Kusuri No Aoki Holdings' potential here in our earnings growth report.
• Our expertly prepared valuation report Kusuri No Aoki Holdings implies its share price may be too high.

Japan Elevator Service HoldingsLtd (TSE:6544)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Elevator Service Holdings Co., Ltd. specializes in the repair, maintenance, and modernization of elevators and escalators across Japan, with a market capitalization of approximately ¥252.03 billion.

Operations: The company generates ¥42.22 billion from its maintenance services for elevators and escalators.

Insider Ownership: 23.4%

Japan Elevator Service Holdings Ltd. is navigating a growth trajectory with high insider ownership, marked by a robust increase in earnings of 43.2% over the past year and an expected annual profit growth of 18.16%. The company's revenue growth forecast at 11.3% annually surpasses Japan's market average of 3.9%, though it falls short of more aggressive growth benchmarks. Recent strategic expansions and increased dividend payouts reflect a commitment to shareholder returns and business scalability, despite not reaching top-tier growth rates.

• Get an in-depth perspective on Japan Elevator Service HoldingsLtd's performance by reading our analyst estimates report here.
• Our valuation report here indicates Japan Elevator Service HoldingsLtd may be overvalued.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Lasertec Corporation specializes in the design, manufacture, and sale of inspection and measurement equipment, operating both in Japan and internationally, with a market capitalization of approximately ¥4.10 billion.

Operations: The company's revenue is derived from the design, manufacture, and sale of inspection and measurement equipment across both domestic and international markets.

Insider Ownership: 12.1%

Lasertec Corporation, a Japanese growth company with significant insider ownership, has demonstrated robust earnings growth of 105.6% over the past year. It is poised for continued profit expansion with an annual forecast of 20.71%. Despite a highly volatile share price recently, Lasertec's revenue and earnings are expected to outpace the Japanese market averages significantly. Recent executive reshuffling aims to strengthen leadership amid these promising financial forecasts, ensuring strategic alignment and sustained growth momentum.

• Dive into the specifics of Lasertec here with our thorough growth forecast report.
• In light of our recent valuation report, it seems possible that Lasertec is trading beyond its estimated value.

Turning Ideas Into Actions

• Get an in-depth perspective on all 107 Fast Growing Japanese Companies With High Insider Ownership by using our screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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