3 Japanese Growth Companies With High Insider Ownership

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Japan's stock markets have shown mixed performance recently, with the Nikkei 225 Index gaining 0.5% while the broader TOPIX Index fell by 1.0%. This comes amid a backdrop of economic uncertainty and currency fluctuations, as the yen strengthened against the USD. In this environment, growth companies with high insider ownership can offer unique advantages. Insider ownership often signals confidence in a company's future prospects and aligns management's interests with those of shareholders, making these stocks particularly compelling in uncertain times.

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%

61.5%

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%

Loadstar Capital K.K (TSE:3482)

33.8%

24.3%

AeroEdge (TSE:7409)

10.7%

25.3%

Soracom (TSE:147A)

16.5%

54.1%

Click here to see the full list of 95 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Rakuten Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving both Japanese and international markets with a market cap of ¥2.03 trillion.

Operations: Rakuten Group's revenue segments include Mobile at ¥382.95 million, Fin Tech at ¥772.29 million, and Internet Services at ¥1.24 billion.

Insider Ownership: 17.3%

Earnings Growth Forecast: 82.3% p.a.

Rakuten Group, Inc. is forecast to experience significant earnings growth at 82.35% per year and become profitable within three years, outperforming the average market growth in Japan. Despite its volatile share price and low return on equity forecast of 9.6%, Rakuten's revenue is expected to grow at 7.6% per year, surpassing the broader JP market's rate of 4.2%. The stock trades at a substantial discount of 89.5% below estimated fair value as of recent analyses.

TSE:4755 Earnings and Revenue Growth as at Sep 2024
TSE:4755 Earnings and Revenue Growth as at Sep 2024

JAPAN MATERIAL

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JAPAN MATERIAL Co., Ltd. operates in the electronics and graphics businesses in Japan with a market cap of ¥179.89 billion.

Operations: The company's revenue segments are comprised of ¥47.65 billion from Electronics, ¥1.56 billion from Graphics Solution Business, and ¥206 million from Solar Power Generation Business.