In October 2024, Japan's stock markets experienced a downturn, with the Nikkei 225 Index and the TOPIX Index both declining amid easing domestic inflation and speculation about future interest rate moves by the Bank of Japan. As investors navigate these shifting economic conditions, companies with strong growth prospects and significant insider ownership can offer unique insights into potential stability and confidence in their business strategies.
Top 10 Growth Companies With High Insider Ownership In Japan
Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States with a market cap of ￥133.68 billion.
Operations: The company's revenue is derived from its Medical Platform Business, generating ￥6.09 billion, and its Human Resource Platform Business, contributing ￥17.87 billion, along with New Services adding ￥573 million.
Insider Ownership: 34%
Earnings Growth Forecast: 30.4% p.a.
Medley, Inc. demonstrates significant growth potential with earnings forecast to increase by 30.4% annually, outpacing the Japanese market average of 8.7%. Despite recent share price volatility, it trades at a substantial discount to its estimated fair value. The company's expansion through Jobley into the U.S., addressing healthcare hiring challenges, supports its growth trajectory. No substantial insider trading activity has been noted recently, and past earnings grew by 39.2%, underscoring robust performance momentum.
Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors both in Japan and globally, with a market cap of approximately ￥1.98 trillion.
Operations: The company's revenue is generated from segments including Mobile at ￥382.95 million, Fin Tech at ￥772.29 million, and Internet Services at ￥1.24 billion.
Insider Ownership: 27.8%
Earnings Growth Forecast: 79.4% p.a.
Rakuten Group is forecast to achieve significant earnings growth of 79.43% annually, becoming profitable in three years, surpassing the average market growth. Despite recent share price volatility and a low forecasted return on equity of 9.5%, it trades at a substantial discount to its estimated fair value. Recent developments include strategic restructuring within its subsidiary operations, potentially enhancing business efficiency and focus as part of its ongoing expansion efforts.
Overview: Capcom Co., Ltd. is engaged in the planning, development, manufacturing, sales, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ￥1.37 trillion.
Operations: The company's revenue segments include Digital Content at ￥103.38 billion, Amusement Equipment at ￥10.34 billion, and Amusement Facilities at ￥20.09 billion.
Insider Ownership: 11.5%
Earnings Growth Forecast: 14.6% p.a.
Capcom is poised for growth with earnings expected to increase by 14.58% annually, outpacing the Japanese market average of 8.7%. Revenue growth is projected at 9.6% per year, exceeding the market's 4.2%, though not reaching high-growth thresholds. Despite recent share price volatility, Capcom's return on equity is forecasted to be robust at 20.3% in three years. No substantial insider trading activity has been reported in the past three months, indicating stability in insider sentiment.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include TSE:4480 TSE:4755 and TSE:9697.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
