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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% |
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.
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Dive into the specifics of Rakuten Group here with our thorough growth forecast report.
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Our valuation report unveils the possibility Rakuten Group's shares may be trading at a discount.
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.