3 Japanese Growth Stocks Insiders Own With Earnings Surging Up To 79%

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Japan's stock markets have experienced a positive trend recently, with the Nikkei 225 Index gaining 2.45% and the broader TOPIX Index up 0.45%, supported by yen weakness that has enhanced profit prospects for exporters. In this favorable environment, growth companies with substantial insider ownership can be particularly appealing, as they often align management interests with shareholder value and may benefit from surging earnings performance.

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%

68.4%

AeroEdge (TSE:7409)

10.7%

25.3%

freee K.K (TSE:4478)

23.9%

74.1%

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

Let's review some notable picks from our screened stocks.

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 internationally with a market cap of ¥2.07 trillion.

Operations: The company's revenue segments consist of Mobile services generating ¥382.95 million, Fin Tech contributing ¥772.29 million, and Internet Services accounting for ¥1.24 billion.

Insider Ownership: 17.3%

Earnings Growth Forecast: 79.4% p.a.

Rakuten Group's earnings are forecast to grow significantly at 79.43% annually, despite a highly volatile share price recently. Revenue growth is expected at 7.5% per year, outpacing the Japanese market average of 4.3%, yet slower than high-growth benchmarks. Trading at a substantial discount to estimated fair value, Rakuten is projected to become profitable within three years, surpassing average market growth rates. No recent insider trading activity has been reported over the past three months.

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

BayCurrent Consulting

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥843.72 billion.

Operations: Revenue segments for the company are not specified in the provided text.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.4% p.a.

BayCurrent Consulting's earnings are projected to grow at 18.4% annually, surpassing the Japanese market average of 8.8%. Revenue is expected to increase by 17.8% per year, outpacing the market but below high-growth benchmarks. The stock trades at a significant discount to its estimated fair value, with a forecasted return on equity of 35.4% in three years. No substantial insider trading activity has been reported recently, indicating stability in insider sentiment.