3 Japanese Growth Stocks With Insider Ownership Up To 35%

Japan's stock markets have shown modest gains recently, with the Nikkei 225 Index rising 0.8% and the broader TOPIX Index up 0.2%, amid speculation about the Bank of Japan's interest rate policies and a strengthening yen. In this environment, identifying growth companies with high insider ownership can be particularly appealing to investors, as these stocks often signal strong internal confidence and alignment with shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.7%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	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 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

SHIFT (TSE:3697)

Simply Wall St Growth Rating: ★★★★★★

Overview: SHIFT Inc. provides software quality assurance and testing solutions in Japan, with a market cap of ¥239.27 billion.

Operations: The company's revenue segments include software quality assurance and testing solutions in Japan, generating ¥239.27 billion.

Insider Ownership: 35.4%

SHIFT, a Japanese growth company with high insider ownership, is forecast to see its earnings grow 32.82% annually and revenue increase by 20.6% per year, outpacing the broader JP market. Despite trading at 41.9% below fair value estimates and showing highly volatile share prices recently, SHIFT has demonstrated strong historical earnings growth of 36.3% per year over the past five years and is expected to maintain a high return on equity of 25.9%.

• Click here and access our complete growth analysis report to understand the dynamics of SHIFT.
• Insights from our recent valuation report point to the potential undervaluation of SHIFT shares in the market.

Money Forward (TSE:3994)

Simply Wall St Growth Rating: ★★★★★★

Overview: Money Forward, Inc. offers financial solutions for individuals, financial institutions, and corporations primarily in Japan and has a market cap of ¥304.03 billion.

Operations: Money Forward generates revenue through financial solutions tailored for individuals, financial institutions, and corporations in Japan.

Insider Ownership: 21.4%

Money Forward, a growth company with high insider ownership, is forecast to see its revenue grow by 20.5% annually, significantly outpacing the broader JP market. The company’s earnings are expected to rise by 66.9% per year and achieve profitability within three years. Recent board meetings have approved strategic moves such as transferring fintech-related business to a subsidiary and forming a joint venture with Sumitomo Mitsui Card Company for PFM services development.

• Click here to discover the nuances of Money Forward with our detailed analytical future growth report.
• Our valuation report unveils the possibility Money Forward's shares may be trading at a premium.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users both in Japan and internationally with a market cap of ¥2.02 trillion.

Operations: The company's revenue segments include Mobile with ¥382.95 million, Fin Tech generating ¥772.29 million, and Internet Services contributing ¥1.24 billion.

Insider Ownership: 17.3%

Rakuten Group is forecast to achieve profitability within three years, with earnings expected to grow by 82.87% annually and revenue projected to increase by 7.6% per year, outpacing the broader JP market's 4.3%. Despite this growth potential, the company's share price has been highly volatile over the past three months. The Return on Equity is anticipated to be low at 9.5% in three years, indicating potential challenges in generating high returns on shareholders' equity.

• 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 inflated.

Turning Ideas Into Actions

• Embark on your investment journey to our 101 Fast Growing Japanese Companies With High Insider Ownership selection here.
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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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