As Japan's stock markets recover from recent volatility, the Nikkei 225 and TOPIX indices have shown resilience amidst shifting economic conditions. This backdrop provides a compelling environment to explore growth companies with high insider ownership, which can often signal strong confidence in a company's future prospects. In this context, identifying stocks with significant insider ownership is crucial as it suggests that those closest to the company believe in its potential for sustained growth.
Top 10 Growth Companies With High Insider Ownership In Japan
Overview: istyle Inc. operates the beauty portal site @cosme in Japan and internationally, with a market cap of ￥42.61 billion.
Operations: The company's revenue segments include Retail at ￥42.24 billion, Global Business at ￥3.94 billion, and Marketing Solution at ￥9.24 billion.
Insider Ownership: 18.3%
Earnings Growth Forecast: 20.6% p.a.
istyle Inc. demonstrates strong growth potential with earnings expected to grow significantly over the next three years, outpacing the Japanese market's average. Despite a highly volatile share price and recent shareholder dilution, its revenue is forecast to grow faster than the JP market at 10.2% annually. Recent guidance indicates robust financial expectations for FY2025, with net sales projected at ￥64 billion and net income per share at ￥20.31, highlighting its promising growth trajectory amidst high insider ownership.
Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors both in Japan and internationally with a market cap of ￥2.23 trillion.
Operations: Rakuten Group's revenue segments include Mobile at ￥382.95 million, Fin Tech at ￥772.29 million, and Internet Services at ￥1.24 billion.
Insider Ownership: 17.3%
Earnings Growth Forecast: 83.3% p.a.
Rakuten Group is forecast to achieve significant earnings growth of 83.28% annually, with revenue expected to grow at 7.6% per year, outpacing the Japanese market's average of 4.3%. Despite a highly volatile share price over the past three months, Rakuten is projected to become profitable within three years, indicating strong future potential. Recent earnings calls suggest a focus on achieving profitability and leveraging high insider ownership for strategic growth initiatives.
Overview: Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally with a market cap of ￥1.34 trillion.
Operations: Capcom generates revenue primarily from Digital Content (￥103.38 billion), Amusement Facilities (￥20.09 billion), and Amusement Equipment (￥10.34 billion).
Insider Ownership: 11.5%
Earnings Growth Forecast: 14.5% p.a.
Capcom's revenue is forecast to grow at 9.5% per year, outpacing the Japanese market's average of 4.3%, while earnings are expected to increase by 14.45% annually, surpassing the market's 8.6%. Despite recent share price volatility, Capcom maintains high insider ownership and a strong Return on Equity forecast of 20.4% in three years. Recent announcements include their Q1 2025 earnings call scheduled for July 29, indicating ongoing transparency and strategic focus.
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:3660 TSE:4755 and TSE:9697.
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