Unveiling High Insider Ownership Growth Stocks On The Japanese Exchange July 2024

Amid a challenging week for Japanese markets, with the Nikkei 225 and TOPIX indices experiencing notable declines, investors are keenly observing shifts in market dynamics and insider movements. In this context, understanding the significance of high insider ownership can offer insights into companies with potentially resilient growth prospects in turbulent times.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	59.7%
Micronics Japan (TSE:6871)	15.3%	39.8%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	28.7%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.9%	91.1%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	20.9%	90%
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.

We're going to check out a few of the best picks from our screener tool.

Money Forward (TSE:3994)

Simply Wall St Growth Rating: ★★★★★★

Overview: Money Forward, Inc. offers financial solutions to individuals, financial institutions, and corporations mainly in Japan, with a market capitalization of approximately ¥278.96 billion.

Operations: The firm primarily serves individuals, financial institutions, and corporations in Japan, focusing on delivering comprehensive financial solutions.

Insider Ownership: 21.4%

Earnings Growth Forecast: 66.9% p.a.

Money Forward, a Japanese company, is poised for significant growth with expected revenue and earnings increases of 20.5% and 66.88% per year respectively, outpacing the market. Despite its highly volatile share price recently, it trades at a substantial discount to fair value and anticipates robust profit growth within three years. Recent strategic moves include forming ventures and restructuring operations to enhance its personal financial management services, demonstrating proactive management aligned with shareholder interests.

• Get an in-depth perspective on Money Forward's performance by reading our analyst estimates report here.
• Insights from our recent valuation report point to the potential overvaluation of Money Forward shares in the market.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving a diverse global audience with a market capitalization of approximately ¥1.94 trillion.

Operations: The company generates revenue through its operations in e-commerce (¥1.13 billion), fintech (¥0.91 billion), digital content (¥0.31 billion), and communications (¥0.45 billion).

Insider Ownership: 17.3%

Earnings Growth Forecast: 81.8% p.a.

Rakuten Group, a Japanese growth company with high insider ownership, is trading at 78.2% below its estimated fair value, signaling potential undervaluation. Forecasted to achieve profitability within three years, Rakuten's revenue growth at 7.8% annually outpaces the broader Japanese market's 4.3%. However, its expected Return on Equity remains modest at 8.9%. Recent guidance suggests robust year-over-year revenue growth for FY2024, excluding the volatile securities sector.

• Delve into the full analysis future growth report here for a deeper understanding of Rakuten Group.
• The valuation report we've compiled suggests that Rakuten Group's current price could be quite moderate.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation, based in Japan, designs, manufactures, and sells inspection and measurement equipment globally with a market capitalization of approximately ¥2.36 trillion.

Operations: The company generates revenue through the design, manufacture, and sale of inspection and measurement systems globally.

Insider Ownership: 12.1%

Earnings Growth Forecast: 19% p.a.

Lasertec Corporation, a Japanese growth company with significant insider ownership, has demonstrated robust performance with earnings growing by 105.6% over the past year. The company's revenue is expected to grow at 15.2% annually, outpacing the Japanese market forecast of 4.3%. Despite this, its earnings growth projection is less pronounced at 19% per year. Recent executive changes could signal strategic shifts, enhancing future governance and operational focus amidst a highly volatile share price environment.

• Click to explore a detailed breakdown of our findings in Lasertec's earnings growth report.
• Our comprehensive valuation report raises the possibility that Lasertec is priced higher than what may be justified by its financials.

Seize The Opportunity

• Reveal the 101 hidden gems among our Fast Growing Japanese Companies With High Insider Ownership screener with a single click here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Want To Explore Some Alternatives?

• 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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