Stock Analysis

3 Top Growth Companies With High Insider Ownership On Japanese Exchanges

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Japan's stock markets have recently shown strong performance, with the Nikkei 225 Index rising by 5.6% and the broader TOPIX Index up by 3.7%, buoyed by dovish commentary from the Bank of Japan and optimism around China's stimulus measures. This favorable economic backdrop makes it an opportune time to explore growth companies with high insider ownership on Japanese exchanges. In today's market, stocks that combine robust growth potential with significant insider ownership can be particularly appealing, as they often indicate strong confidence from those closest to the company's operations and future prospects.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)27%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.5%
Medley (TSE:4480)34%30.4%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%68.1%
AeroEdge (TSE:7409)10.7%25.3%
Soracom (TSE:147A)16.5%54.1%
freee K.K (TSE:4478)23.9%74.1%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

SAKURA Internet (TSE:3778)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SAKURA Internet Inc. provides cloud computing services in Japan and has a market cap of ¥179.11 billion.

Operations: The company's revenue segment includes the Internet Infrastructure Business, which generated ¥22.66 billion.

Insider Ownership: 18.2%

Return On Equity Forecast: N/A (2027 estimate)

SAKURA Internet, a growth company with high insider ownership, is forecast to see revenue grow at 33.9% annually, outpacing the JP market's 4.3%. Earnings are expected to rise significantly at 55.63% per year over the next three years. Despite recent volatility and past shareholder dilution, SAKURA's robust growth prospects are underscored by its guidance for FY2025: JPY 28 billion in net sales and JPY 2 billion in operating profit.

TSE:3778 Earnings and Revenue Growth as at Sep 2024

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 approximately ¥325.95 billion.

Operations: The Platform Services Business segment of Money Forward, Inc. generates ¥36.16 billion in revenue.

Insider Ownership: 21.4%

Return On Equity Forecast: 21% (2027 estimate)

Money Forward is expected to become profitable within three years, with earnings forecasted to grow 68.12% annually and revenue at 20.7% per year, significantly outpacing the market. Recent board meetings focused on strategic partnerships and restructuring initiatives, including a potential joint venture with Sumitomo Mitsui Card Company and transferring fintech-related business rights. Trading at 49.6% below estimated fair value, Money Forward's high insider ownership aligns with its strong growth outlook despite no substantial recent insider trading activity.

TSE:3994 Earnings and Revenue Growth as at Sep 2024

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.37 trillion.

Operations: The company's primary revenue segment, generating ¥213.51 billion, is from the design, manufacture, and sale of inspection and measurement equipment.

Insider Ownership: 11.8%

Return On Equity Forecast: 41% (2027 estimate)

Lasertec's earnings are forecast to grow 15.9% annually, outpacing the Japanese market. Despite high volatility in its share price, Lasertec has shown strong profit growth of 28% over the past year. The company recently launched SICA108, enhancing SiC wafer inspection capabilities and maintaining its technological edge. With no substantial insider trading activity reported recently, high insider ownership aligns with Lasertec's promising growth trajectory and robust return on equity projections (41.4%).

TSE:6920 Earnings and Revenue Growth as at Sep 2024

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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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