Exploring Three Japanese Growth Companies With High Insider Ownership On The Tokyo Stock Exchange

Amid a backdrop of fluctuating global markets, with Japan's Nikkei 225 experiencing slight declines influenced by broader economic signals from the U.S., investors continue to seek stable opportunities. High insider ownership in growth companies on the Tokyo Stock Exchange often indicates a strong alignment between company management and shareholder interests, potentially offering a degree of resilience during uncertain times.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
SHIFT (TSE:3697)	35.4%	27.2%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
Hottolink (TSE:3680)	27%	57.3%
Micronics Japan (TSE:6871)	15.3%	39.7%
Kasumigaseki CapitalLtd (TSE:3498)	35.4%	44.6%
ExaWizards (TSE:4259)	24.8%	80.2%
Money Forward (TSE:3994)	21.4%	63.5%
Medley (TSE:4480)	34%	24.4%
Soiken Holdings (TSE:2385)	19.8%	118.4%
Soracom (TSE:147A)	17.2%	59.1%

Click here to see the full list of 110 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

PeptiDream

Simply Wall St Growth Rating: ★★★★★☆

Overview: PeptiDream Inc. is a biopharmaceutical company focused on the discovery and development of constrained peptides, small molecules, and peptide-drug conjugate therapeutics, with a market capitalization of approximately ¥255.26 billion.

Operations: The company generates its revenue primarily from the development and commercialization of constrained peptides, small molecules, and peptide-drug conjugates.

Insider Ownership: 26.1%

PeptiDream, a Japanese biotechnology firm, demonstrates robust growth prospects with its earnings expected to increase by 23% annually, outpacing the local market's 8.5%. Despite a recent dip in profit margins from 25.9% to 8.7%, the company's strategic expansion via a significant collaboration with Novartis Pharma AG underscores its innovative edge and potential revenue streams. This deal not only involves an upfront payment of US$180 million but also up to US$2.71 billion based on developmental milestones, enhancing PeptiDream’s financial outlook and reinforcing its high insider ownership model as a growth-oriented company.

• Unlock comprehensive insights into our analysis of PeptiDream stock in this growth report.

• Our valuation report unveils the possibility PeptiDream's shares may be trading at a premium.

TSE:4587 Earnings and Revenue Growth as at May 2024

Rakuten Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users globally with a market capitalization of approximately ¥1.72 trillion.

Operations: The company generates revenue through its operations in online retail, financial services, digital media, and telecommunications.

Insider Ownership: 17.3%

Rakuten Group, a Japanese conglomerate, is navigating a landscape of moderate growth with its revenue expected to grow by 7.4% annually, surpassing the domestic market's average. Despite shareholder dilution over the past year and a low forecasted return on equity of 8.8%, Rakuten anticipates becoming profitable within three years and expects earnings to surge by 87.58% annually. Recent activities include a substantial $1.99 billion fixed-income offering and revised corporate guidance predicting robust operating results for 2024, excluding its volatile securities segment.

• Take a closer look at Rakuten Group's potential here in our earnings growth report.

• According our valuation report, there's an indication that Rakuten Group's share price might be on the expensive side.

TSE:4755 Earnings and Revenue Growth as at May 2024

Capcom

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a Japanese company that engages in the planning, development, manufacturing, sale, and distribution of home video games, online games, mobile games, and arcade games globally with a market capitalization of approximately ¥1.14 trillion.

Operations: The company generates its revenue from the sale and distribution of home video games, online games, mobile games, and arcade games across various international markets.

Insider Ownership: 11.5%

Capcom, a prominent Japanese game developer, reported an 18.1% increase in earnings over the past year, with revenue growth forecasted at 5.7% annually—outpacing the Japanese market's average of 3.9%. Despite this growth not reaching the high threshold of 20%, Capcom maintains a strong return on equity projection at 20.7%. Recent corporate activities include a significant stock split and consistent presentations at industry conferences, underlining its active engagement in market expansion strategies without substantial insider trading reported in the last three months.

• Click here to discover the nuances of Capcom with our detailed analytical future growth report.

• Insights from our recent valuation report point to the potential overvaluation of Capcom shares in the market.

TSE:9697 Earnings and Revenue Growth as at May 2024

Where To Now?

• Navigate through the entire inventory of 110 Fast Growing Japanese Companies With High Insider Ownership here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Find companies with promising cash flow potential yet trading below their fair value.

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:4587 TSE:4755 and TSE:9697.

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