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July 2024 Insight Into High Insider Ownership Growth Companies On The Japanese Exchange

Amidst a backdrop of global economic shifts and specific challenges within Japan's technology sector, Japanese markets have experienced notable fluctuations. This context sets the stage for examining growth companies with high insider ownership, which can signal strong confidence in a company's future from those most intimately aware of its operations and potential.

Top 10 Growth Companies With High Insider Ownership In Japan

Name

Insider Ownership

Earnings Growth

Hottolink (TSE:3680)

27%

59.7%

Kasumigaseki CapitalLtd (TSE:3498)

34.8%

42.9%

Medley (TSE:4480)

34%

28.7%

Micronics Japan (TSE:6871)

15.3%

39.8%

Kanamic NetworkLTD (TSE:3939)

25%

28.9%

SHIFT (TSE:3697)

35.4%

32.8%

ExaWizards (TSE:4259)

21.9%

91.1%

Money Forward (TSE:3994)

21.4%

66.9%

Astroscale Holdings (TSE:186A)

20.9%

90%

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.

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

Round One

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Round One Corporation operates indoor leisure complex facilities and has a market capitalization of approximately ¥240.49 billion.

Operations: The company generates its revenue primarily from indoor leisure complexes in Japan and the USA, with ¥97.99 billion and ¥59.58 billion respectively.

Insider Ownership: 35.2%

Earnings Growth Forecast: 11% p.a.

Round One Corporation, a growth-oriented company with significant insider ownership in Japan, shows promising financial trends. Recently, its sales in the USA and Japan have demonstrated robust growth with substantial year-to-date increases. The company's earnings grew by 60.9% last year and are projected to rise by 10.96% annually. Despite not being the top performer in high-growth metrics, Round One trades at 60% below estimated fair value, offering potential upside amidst its steady dividend payout of 1.8%.

TSE:4680 Ownership Breakdown as at Jul 2024
TSE:4680 Ownership Breakdown as at Jul 2024

CyberAgent

Simply Wall St Growth Rating: ★★★★☆☆

Overview: CyberAgent, Inc., primarily operating in Japan, focuses on media services, internet advertising, gaming, and investment development with a market capitalization of approximately ¥490.89 billion.

Operations: The company's primary revenue streams include media services, internet advertising, and gaming.

Insider Ownership: 19.4%

Earnings Growth Forecast: 20.4% p.a.

CyberAgent, a Japanese growth company with high insider ownership, recently planned to acquire Nitroplus Co., Ltd., enhancing its portfolio. Despite trading 34.9% below its fair value estimate, CyberAgent's revenue is expected to grow at 6.5% annually, outpacing the Japanese market's 4.3%. However, its forecasted Return on Equity of 13.7% is modest, and earnings are projected to increase by 20.41% annually over the next three years—a rate faster than the broader market’s expectations.

TSE:4751 Ownership Breakdown as at Jul 2024
TSE:4751 Ownership Breakdown as at Jul 2024

BayCurrent Consulting

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services across various sectors in Japan and has a market capitalization of approximately ¥708.69 billion.

Operations: The firm delivers consulting services across multiple sectors in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.7% p.a.

BayCurrent Consulting, a Japanese firm, is poised for robust growth with earnings and revenue forecasted to increase at 18.7% and 18.2% per year respectively, outstripping the national market pace. Despite its high volatility in share price recently, it trades at a significant discount of 38.4% below its estimated fair value. Notably, the company has shown confidence through a recent buyback of shares worth ¥3.6 billion, underscoring strong insider conviction despite lacking substantial insider transactions over the past three months.

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

Key Takeaways

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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:4680 TSE:4751 and TSE:6532.

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