Yahoo Finance Unveiling Three Growth Companies With High Insider Ownership On The Japanese Exchange Anticipating At Least 10% Earnings Growth
Japan's stock market has recently shown a mixed performance, with the Nikkei 225 Index experiencing modest gains while the broader TOPIX Index recorded slight declines. This divergence highlights the nuanced and selective investor sentiment prevailing in the region. In such a market environment, companies with high insider ownership can be particularly appealing as they often signal strong confidence from those closest to the business in its growth prospects and financial health.
Top 10 Growth Companies With High Insider Ownership In Japan
Name | Insider Ownership | Earnings Growth |
SHIFT (TSE:3697) | 35.4% | 26.8% |
Kanamic NetworkLTD (TSE:3939) | 25% | 28.9% |
Hottolink (TSE:3680) | 27% | 57.3% |
Medley (TSE:4480) | 34% | 28.7% |
Micronics Japan (TSE:6871) | 15.3% | 39.7% |
Kasumigaseki CapitalLtd (TSE:3498) | 34.8% | 44.6% |
ExaWizards (TSE:4259) | 24.8% | 91.1% |
Soiken Holdings (TSE:2385) | 19.8% | 118.4% |
Soracom (TSE:147A) | 17.2% | 54.1% |
freee K.K (TSE:4478) | 24% | 80.9% |
Let's dive into some prime choices out of from the screener.
World
Simply Wall St Growth Rating: ★★★★☆☆
Overview: World Co., Ltd. is a company engaged in the planning, manufacturing, retailing, and importing/exporting of apparel and fashion products both in Japan and globally, with a market capitalization of ¥68.20 billion.
Operations: The firm operates in the apparel and fashion sector, focusing on planning, manufacturing, retailing, and international trade.
Insider Ownership: 14.7%
Earnings Growth Forecast: 23.6% p.a.
World Co., Ltd. is poised for notable growth with earnings expected to increase by 23.62% annually, outpacing the Japanese market's 8.8%. Despite this, the company trades at a significant discount, valued at 77% below its estimated fair value and has a high level of debt which could pose risks. Recent corporate guidance predicts robust financial performance with substantial revenue and profit projections for FY2024-2025, although it faces instability in its dividend payments evidenced by recent fluctuations in dividend amounts.
Plus Alpha ConsultingLtd
Simply Wall St Growth Rating: ★★★★★☆
Overview: Plus Alpha Consulting Co., Ltd. specializes in marketing solutions and has a market capitalization of ¥75.58 billion.
Operations: The company specializes in providing marketing solutions.
Insider Ownership: 39.6%
Earnings Growth Forecast: 21% p.a.
Plus Alpha Consulting Ltd. is forecasted to experience robust growth, with earnings expected to increase significantly over the next three years, outstripping the Japanese market's average. The company's revenue growth is also projected to surpass market averages at 15.9% annually. Additionally, a high forecasted Return on Equity of 28.3% further underscores its financial health and operational efficiency. However, it should be noted that this revenue growth rate does not meet the higher benchmark of 20% per year often associated with rapid-growth firms.
CURVES HOLDINGS
Simply Wall St Growth Rating: ★★★★☆☆
Overview: CURVES HOLDINGS Co., Ltd. operates and manages fitness clubs for women under the Curves brand in Japan, with a market capitalization of approximately ¥68.95 billion.
Operations: The company generates its revenue from managing women's fitness clubs under the Curves brand in Japan.
Insider Ownership: 22.1%
Earnings Growth Forecast: 10.7% p.a.
CURVES HOLDINGS Co., Ltd. is poised for steady growth with earnings forecasted to rise by 10.7% annually, outpacing the Japanese market's average of 8.8%. Its revenue growth at 8% per year also exceeds the market's 4.1%, reflecting a solid trajectory albeit below high-growth benchmarks. Notably, its Return on Equity is expected to reach an impressive 21.5% in three years, indicating strong profitability potential despite trading at a significant discount of 26.2% below its estimated fair value.
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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:3612 TSE:4071 and TSE:7085.
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