3 Japanese Growth Stocks With Insider Ownership Expecting Up To 79% Growth

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Japan's stock markets experienced notable declines recently, influenced by political changes and the new Prime Minister Shigeru Ishiba's initial hawkish stance on monetary policy. Despite these fluctuations, the focus remains on growth stocks with high insider ownership as they often indicate strong confidence from those most familiar with the company's potential.

Top 10 Growth Companies With High Insider Ownership In Japan

Name

Insider Ownership

Earnings Growth

Micronics Japan (TSE:6871)

15.3%

31.5%

Hottolink (TSE:3680)

26.1%

61.5%

Kasumigaseki CapitalLtd (TSE:3498)

34.7%

40.2%

Medley (TSE:4480)

34%

30.4%

Inforich (TSE:9338)

19.1%

29.8%

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%

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

Let's dive into some prime choices out of the screener.

freee K.K

Simply Wall St Growth Rating: ★★★★★☆

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market cap of ¥184.30 billion.

Operations: Revenue segments for TSE:4478 include cloud-based accounting and HR software solutions in Japan.

Insider Ownership: 23.9%

Earnings Growth Forecast: 74.1% p.a.

freee K.K. is set to become profitable in the next three years, with earnings projected to grow 74.08% annually, outpacing market averages. Despite high share price volatility recently, it trades at a significant discount to its estimated fair value. Revenue growth is forecasted at 18.2% per year, surpassing Japan's market average of 4.2%. Recent leadership changes include Yasuhiro Kimura's appointment as CPO, signaling strategic continuity and potential for innovation in product management.

TSE:4478 Earnings and Revenue Growth as at Oct 2024
TSE:4478 Earnings and Revenue Growth as at Oct 2024

Rakuten Group

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 ¥1.98 trillion.

Operations: The company's revenue is primarily derived from Internet Services (¥1.24 billion), Fin Tech (¥772.29 million), and Mobile (¥382.95 million) segments.

Insider Ownership: 17.3%

Earnings Growth Forecast: 79.3% p.a.

Rakuten Group is anticipated to achieve profitability within three years, with earnings expected to grow 79.35% annually, surpassing market averages. Despite recent share price volatility, it trades significantly below its estimated fair value. Revenue growth is projected at 7.5% per year, exceeding the Japanese market's average of 4.2%. Recent participation in the Oppenheimer Healthcare Private Company Showcase highlights its strategic focus on expanding presence in healthcare sectors.