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3 High Insider Ownership Growth Companies On The Japanese Exchange With Earnings Growth Up To 83%

Japan's stock markets have recently shown positive momentum, with the Nikkei 225 Index and the broader TOPIX Index both recording gains. This upward trend is supported by a historically weak yen, which benefits the country’s export-driven industries. In such an environment, growth companies with high insider ownership can be particularly compelling, as they often indicate confidence from those closest to the company’s operations and future prospects.

Top 10 Growth Companies With High Insider Ownership In Japan

Name

Insider Ownership

Earnings Growth

SHIFT (TSE:3697)

35.4%

26.9%

Hottolink (TSE:3680)

27%

57.4%

Kasumigaseki CapitalLtd (TSE:3498)

34.8%

42.1%

Medley (TSE:4480)

34%

28.7%

Micronics Japan (TSE:6871)

15.3%

39.8%

Kanamic NetworkLTD (TSE:3939)

25%

28.9%

ExaWizards (TSE:4259)

21.9%

91.1%

Soiken Holdings (TSE:2385)

19.8%

118.4%

AeroEdge (TSE:7409)

10.7%

28.5%

Soracom (TSE:147A)

17.2%

54.1%

Click here to see the full list of 98 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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We'll examine a selection from our screener results.

Mercari

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. operates a marketplace application in Japan and the United States, focusing on facilitating the buying and selling of goods, with a market capitalization of approximately ¥377.97 billion.

Operations: The company generates its revenue primarily through its marketplace applications active in Japan and the U.S.

Insider Ownership: 36%

Earnings Growth Forecast: 18.8% p.a.

Mercari, a growth-oriented company in Japan with significant insider ownership, shows mixed financial prospects. While its revenue growth at 9.7% per year outpaces the Japanese market average of 4.2%, this rate is considered moderate rather than high. Earnings have surged by a very large 222.8% over the past year and are expected to continue growing at an above-market rate of 18.82% annually, compared to the market's 8.9%. However, Mercari's share price has been highly volatile recently. The company forecasts JPY 190 billion in revenue and JPY 12 billion profit for the fiscal year ending June 2024.

TSE:4385 Earnings and Revenue Growth as at Jul 2024
TSE:4385 Earnings and Revenue Growth as at Jul 2024

Rakuten Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates globally, offering e-commerce, fintech, digital content, and communications services with a market capitalization of approximately ¥1.90 trillion.

Operations: The company generates revenue through its diverse operations in e-commerce, fintech, digital content, and communications.

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.1% p.a.

Rakuten Group, positioned in Japan's growth sector with high insider ownership, anticipates robust future profitability, expecting to turn profitable within three years. Despite a forecasted annual revenue growth of 7.8%, which outpaces the Japanese market's 4.2%, its projected Return on Equity of 8.9% remains modest. The company is currently valued at 79.8% below its estimated fair value, indicating potential undervaluation. Recent guidance suggests double-digit growth in operating results for FY2024, excluding volatile securities business impacts.

TSE:4755 Ownership Breakdown as at Jul 2024
TSE:4755 Ownership Breakdown as at Jul 2024

BayCurrent Consulting

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market capitalization of approximately ¥565.92 billion.

Operations: The firm generates revenue primarily through consulting services in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.4% p.a.

BayCurrent Consulting, a Japanese firm with significant insider ownership, has recently completed a share buyback for ¥3.60 billion, signaling confidence in its financial health and commitment to shareholder value. Despite its share price volatility over the past three months, the company trades at 49.5% below estimated fair value and shows promising growth forecasts with revenue and earnings expected to outpace the Japanese market significantly. However, its revenue growth rate of 18.3% per year falls short of the 20% high-growth benchmark.

TSE:6532 Ownership Breakdown as at Jul 2024
TSE:6532 Ownership Breakdown as at Jul 2024

Summing It All Up

Ready To Venture Into Other Investment Styles?

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:4385 TSE:4755 and TSE:6532.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com