3 Growth Companies With High Insider Ownership On The Japanese Exchange
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As Japan's stock markets recently experienced sharp losses amid political shifts and monetary policy adjustments, investors are closely monitoring the impact on growth companies within the country. In this environment, stocks with high insider ownership can be particularly appealing as they often indicate a strong alignment between company management and shareholder interests.
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% |
Let's take a closer look at a couple of our picks from the screened companies.
S Foods
Simply Wall St Growth Rating: ★★★★☆☆
Overview: S Foods Inc. is a Japanese meat company involved in the manufacture, wholesaling, retailing, and food servicing of meat-related products with a market cap of ￥87.82 billion.
Operations: The company's revenue segments include Manufacturing and Wholesale of Meat, Etc. at ￥406.97 billion, Retail Business of Meat, Etc. at ￥24.15 billion, and Meat Restaurant Business at ￥8.33 billion.
Insider Ownership: 25.5%
S Foods is trading at a good value, 35.4% below its estimated fair value, with earnings expected to grow significantly at 22.4% annually, outpacing the JP market's 8.7%. Revenue growth is projected at 7.8%, faster than the market's 4.2%. However, profit margins have decreased to 1.4% from last year's 2.7%, and the dividend yield of ￥3.21 isn't well covered by free cash flows, indicating potential sustainability concerns.
Rakuten Group
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors both in Japan and globally, with a market cap of ￥2.04 trillion.
Operations: The company's revenue segments are comprised of Mobile at ￥382.95 million, Fin Tech at ￥772.29 million, and Internet Services at ￥1.24 billion.
Insider Ownership: 17.3%
Rakuten Group is trading at 90.2% below its estimated fair value, with earnings projected to grow significantly at 79.35% annually, surpassing the JP market's growth rate. Although revenue growth is slower than 20%, it still exceeds the market average of 4.2%. The company has no substantial insider trading activity over the past three months and recently presented at a healthcare showcase in New York, highlighting its strategic initiatives despite a volatile share price.