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High Insider Ownership Growth Stocks On The Japanese Exchange July 2024

Amidst a backdrop of strengthening indices, Japan's stock markets have recently hit all-time highs, reflecting robust investor confidence and economic momentum. In such an environment, growth companies with high insider ownership can be particularly compelling as these insiders may have significant confidence in their companies' trajectories and potential for success.

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%

42.3%

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%

Astroscale Holdings (TSE:186A)

20.9%

90%

Soiken Holdings (TSE:2385)

19.8%

118.4%

freee K.K (TSE:4478)

23.9%

72.9%

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

Let's dive into some prime choices out of from the screener.

Persol HoldingsLtd

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persol Holdings Ltd, operating under the PERSOL brand, offers a range of human resource services globally and has a market capitalization of approximately ¥555.86 billion.

Operations: The company's revenue is divided into several segments, with Staffing (excluding BPO) generating ¥575.80 billion, Asia Pacific contributing ¥412.77 billion, Career at ¥128.28 billion, BPO at ¥110.80 billion, and Technology services accounting for ¥102.38 billion.

Insider Ownership: 11.8%

Earnings Growth Forecast: 12% p.a.

Persol Holdings Ltd. is positioned below its fair value, trading at 55% less than estimated, with a forecasted earnings growth of 12% per year, outpacing the Japanese market's 8.9%. Despite an unstable dividend track record and modest revenue growth predictions of 5.3% annually—slightly above the market average—the firm demonstrates strong insider confidence through recent substantial share buybacks totaling ¥3.59 billion for 0.72% of shares, underlining a commitment to enhancing shareholder returns through March 2025.

TSE:2181 Ownership Breakdown as at Jul 2024
TSE:2181 Ownership Breakdown as at Jul 2024

Mercari

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. operates a marketplace application in Japan and the United States, focusing on the buying and selling of goods, with a market capitalization of approximately ¥401.96 billion.

Operations: The company generates revenue through its marketplace applications in Japan and the United States.

Insider Ownership: 36%

Earnings Growth Forecast: 18.8% p.a.

Mercari, Inc. anticipates a solid year with expected revenue of JPY 190 billion and an operating profit of JPY 16.5 billion. While its revenue growth at 9.7% annually is modest compared to high-growth benchmarks, it still surpasses the Japanese market's average of 4.3%. Earnings have surged by a substantial 222.8% over the past year, with future earnings projected to grow by 18.82% annually, outperforming the market forecast of 8.9%. Despite this robust performance, there is no recent record of insider buying or selling.

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 in e-commerce, fintech, digital content, and communications sectors serving users globally and has a market capitalization of approximately ¥1.91 trillion.

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

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.1% p.a.

Rakuten Group is poised for significant growth with its revenue expected to increase by 7.8% annually, outpacing the Japanese market forecast of 4.3%. Although its return on equity might remain low at 8.9% in three years, the company is trading at a substantial 78.5% below estimated fair value and earnings are projected to surge by 83.11% per year. Additionally, Rakuten anticipates double-digit growth in operating results for FY 2024, excluding its securities business impacted by stock market conditions.

TSE:4755 Earnings and Revenue Growth as at Jul 2024
TSE:4755 Earnings and Revenue Growth as at Jul 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:2181 TSE:4385 and TSE:4755.

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