3 Japanese Growth Companies With High Insider Ownership Delivering Up To 37% ROE


Japan’s stock markets have recently experienced an upswing, with the Nikkei 225 Index and the broader TOPIX Index both showing gains, supported by a weaker yen that has improved profit outlooks for exporters. As investors navigate these favorable conditions, growth companies with high insider ownership can offer unique insights into potential investment opportunities due to their alignment of interests and commitment to long-term success.

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%

71.3%

Loadstar Capital K.K (TSE:3482)

33.8%

24.3%

AeroEdge (TSE:7409)

10.7%

25.3%

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

Underneath we present a selection of stocks filtered out by our screen.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan with a market capitalization of approximately ¥805.19 billion.

Operations: BayCurrent Consulting, Inc. generates its revenue primarily through consulting services in Japan.

Insider Ownership: 13.9%

Return On Equity Forecast: 35% (2027 estimate)

BayCurrent Consulting shows strong growth potential with earnings forecasted to grow at 18.4% annually, outpacing the Japanese market average of 8.7%. Despite no recent insider trading activity, high insider ownership aligns management interests with shareholders. The company’s revenue is expected to increase by 17.8% per year, surpassing the market’s 4.3% growth rate, and it trades at a significant discount to its estimated fair value, suggesting potential undervaluation for investors focused on growth opportunities in Japan.

TSE:6532 Ownership Breakdown as at Oct 2024

TSE:6532 Ownership Breakdown as at Oct 2024

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Financial Partners Group Co., Ltd., along with its subsidiaries, offers a range of financial products and services in Japan, with a market cap of ¥207.80 billion.

Operations: Financial Partners Group Co., Ltd. generates revenue through its diverse offerings of financial products and services in Japan.

Insider Ownership: 31.3%

Return On Equity Forecast: 38% (2027 estimate)

Financial Partners Group Ltd. demonstrates growth potential with earnings projected to rise 17% annually, outpacing the Japanese market’s 8.7%. The company maintains a low price-to-earnings ratio of 11.2x, indicating good value relative to the market average of 13.5x. Recent strategic expansions include opening a sales office in Imabari City and acquiring prime real estate in Fukuoka City for fractional ownership investments, enhancing its domestic real estate fund business amid high insider ownership and no recent insider trading activity.

TSE:7148 Earnings and Revenue Growth as at Oct 2024

TSE:7148 Earnings and Revenue Growth as at Oct 2024

Simply Wall St Growth Rating: ★★★★☆☆

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 ¥1.36 trillion.

Operations: The company’s revenue is derived from Digital Content at ¥103.38 billion, Amusement Equipment at ¥10.34 billion, and Amusement Facilities at ¥20.09 billion.

Insider Ownership: 11.5%

Return On Equity Forecast: 20% (2027 estimate)

Capcom’s earnings are projected to grow at 14.58% annually, surpassing the Japanese market’s average of 8.7%, with revenue expected to increase by 9.6% per year, also outpacing the market growth rate of 4.3%. Despite a highly volatile share price recently, Capcom shows strong return on equity forecasts at 20.3% over three years and no significant insider trading activity in the past three months, indicating stable insider confidence amidst substantial ownership.

TSE:9697 Ownership Breakdown as at Oct 2024

TSE:9697 Ownership Breakdown as at Oct 2024

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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:6532 TSE:7148 and TSE:9697.

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



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