Top Growth Stocks With High Insider Ownership On Japanese Exchange

Japan's stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, buoyed by better-than-expected U.S. economic data and a weaker yen supporting exporters. This positive momentum underscores the importance of identifying growth companies with high insider ownership, as these firms often exhibit strong alignment between management and shareholder interests, making them compelling candidates in today's market environment.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.9%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%

Click here to see the full list of 104 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. offers e-commerce, fintech, digital content, and communication services to users in Japan and internationally with a market cap of ¥1.89 trillion.

Operations: Rakuten Group generates revenue from its Mobile segment (¥382.95 million), Fin Tech segment (¥772.29 million), and Internet Services segment (¥1.24 billion).

Insider Ownership: 17.3%

Earnings Growth Forecast: 82.9% p.a.

Rakuten Group demonstrates significant growth potential, with earnings forecast to grow 82.86% annually and revenue expected to increase by 7.7% per year, outpacing the Japanese market's average growth of 4.3%. Despite high share price volatility over the past three months, Rakuten is projected to become profitable within the next three years, surpassing average market growth expectations. Recent Q2 2024 earnings call on August 9 provided further insights into its financial trajectory.

• Get an in-depth perspective on Rakuten Group's performance by reading our analyst estimates report here.
• Upon reviewing our latest valuation report, Rakuten Group's share price might be too optimistic.

JAPAN MATERIAL (TSE:6055)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JAPAN MATERIAL Co., Ltd. operates in the electronics and graphics businesses in Japan with a market cap of ¥182.36 billion.

Operations: The company generates revenue from three main segments: Electronics (¥47.65 billion), Graphics Solution Business (¥1.56 billion), and Solar Power Generation Business (¥206 million).

Insider Ownership: 35.3%

Earnings Growth Forecast: 24.4% p.a.

Japan Material is expected to see earnings grow significantly at 24.4% per year, outpacing the Japanese market's average of 8.5%. Revenue is forecast to increase by 14.7% annually, also higher than the market's 4.3%. Despite a highly volatile share price recently, it trades at a substantial discount to its estimated fair value and analysts agree on a potential price rise of nearly 50%. The company has provided strong earnings guidance for FY2025 with net sales projected at ¥50 billion and operating profit at ¥10 billion.

• Delve into the full analysis future growth report here for a deeper understanding of JAPAN MATERIAL.
• Our valuation report here indicates JAPAN MATERIAL may be undervalued.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment in Japan and internationally, with a market cap of ¥2.61 trillion.

Operations: Revenue from inspection and measurement equipment amounts to ¥213.51 billion.

Insider Ownership: 11.8%

Earnings Growth Forecast: 20% p.a.

Lasertec Corporation, a growth company with significant insider ownership, is forecasted to see earnings grow at 20% annually, outpacing the Japanese market's 8.5%. Revenue is expected to increase by 16.6% per year. Despite recent share price volatility, the company reported strong sales of ¥157.20 billion for the first three quarters of FY2024 and has provided robust earnings guidance for FY2025 with net sales projected at ¥240 billion and operating income at ¥104 billion.

• Click here to discover the nuances of Lasertec with our detailed analytical future growth report.
• According our valuation report, there's an indication that Lasertec's share price might be on the expensive side.

Where To Now?

• Get an in-depth perspective on all 104 Fast Growing Japanese Companies With High Insider Ownership by using our screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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