3 Japanese Growth Companies With Insider Ownership Up To 23%

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Japan's stock markets have been on the rise, with the Nikkei 225 Index gaining 2.45% over the past week, supported by yen weakness that has boosted the profit outlook for exporters. As investors navigate these favorable conditions, growth companies with significant insider ownership often attract attention due to their potential alignment of interests between management and shareholders, making them compelling considerations amidst current market dynamics.

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%

Soracom (TSE:147A)

16.5%

54.1%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Money Forward

Simply Wall St Growth Rating: ★★★★★★

Overview: Money Forward, Inc. offers financial solutions for individuals, financial institutions, and corporations primarily in Japan, with a market cap of approximately ¥340.35 billion.

Operations: The company generates revenue primarily through its Platform Services Business, which accounts for ¥36.16 billion.

Insider Ownership: 21.4%

Money Forward is poised for significant growth, with earnings forecasted to grow 68.12% annually and revenue expected to rise 20.7% per year, outpacing the JP market. The company is projected to become profitable within three years, with a high return on equity of 20.6%. Trading at 47.1% below its estimated fair value, Money Forward recently considered agreements with Sumitomo Mitsui Card Company and restructured its fintech business operations through subsidiary transfers.

TSE:3994 Ownership Breakdown as at Oct 2024
TSE:3994 Ownership Breakdown as at Oct 2024

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 ¥197.19 billion.

Operations: Revenue Segments (in millions of ¥): freee K.K. generates revenue through its cloud-based accounting and HR software solutions in Japan.

Insider Ownership: 23.9%

freee K.K. demonstrates potential for growth, with earnings projected to increase by 74.08% annually and revenue expected to grow at 18.2% per year, surpassing the Japanese market average. The company is anticipated to achieve profitability within three years, with a forecasted return on equity of 21.9%. Recent executive changes include Yasuhiro Kimura's appointment as CPO, following Sumito Togo's resignation, while proposed amendments aim to expand business activities further.