Japan's stock markets have shown resilience, with the Nikkei 225 Index gaining 0.7% and the broader TOPIX Index up 1.0%, recovering from earlier volatility driven by interest rate hikes and global economic concerns. Amidst this backdrop, identifying growth companies with high insider ownership can provide valuable insights into potential investment opportunities. In this article, we will explore three growth stocks on the Japanese exchange that boast up to 23% insider ownership, offering a closer look at how internal confidence aligns with market performance.
Top 10 Growth Companies With High Insider Ownership In Japan
Overview: Stella Chemifa Corporation manufactures and sells inorganic fluorine compounds in Japan and internationally, with a market cap of ¥49.49 billion.
Operations: Stella Chemifa Corporation's revenue segments include High-Purity Chemical at ¥27.44 billion and Transportation at ¥7.60 billion.
Insider Ownership: 23.5%
Stella Chemifa shows strong growth potential, with earnings forecasted to grow 23.5% annually, significantly outpacing the Japanese market's 8.7%. Revenue is expected to increase by 9.6% per year, above the market average of 4.2%. Despite trading at a substantial discount to its estimated fair value, its dividend sustainability is questionable due to recent decreases and high payout ratios. No significant insider trading activity was reported in the last three months.
Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users in Japan and internationally with a market cap of ¥2.29 trillion.
Operations: Rakuten Group's revenue segments include Mobile (¥382.95 million), Fin Tech (¥772.29 million), and Internet Services (¥1.24 billion).
Insider Ownership: 17.3%
Rakuten Group is forecast to achieve 83.06% annual earnings growth and become profitable within three years, outperforming the average market growth. Revenue is expected to grow at 7.6% per year, faster than the Japanese market's 4.2%. However, its share price has been highly volatile recently and its Return on Equity is projected to be modest at 9.7%. No significant insider trading activity was reported in the last three months.
Overview: Capcom Co., Ltd. is a company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.37 trillion.
Operations: Capcom's revenue segments include Digital Content at ¥103.38 billion, Amusement Facilities at ¥20.09 billion, and Amusement Equipment at ¥10.34 billion.
Insider Ownership: 11.5%
Capcom's earnings are forecast to grow at 14.5% annually, outpacing the Japanese market's 8.7%, with revenue expected to increase by 9.5% per year. The company's Return on Equity is projected to reach 20.4% in three years, indicating strong profitability prospects. Despite recent share price volatility and no significant insider trading activity in the last three months, Capcom remains a prominent growth company with high insider ownership in Japan.
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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.
Companies discussed in this article include TSE:4109 TSE:4755 and TSE:9697.
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