Unveiling Three High Insider Ownership Growth Companies On The Japanese Exchange With Earnings Rising Up To 83%

Amid a backdrop of global economic shifts and market adjustments, Japan's stock markets have shown remarkable resilience, recently achieving all-time highs. This robust performance makes it an opportune time to explore growth companies with high insider ownership, which often signals strong confidence in the company’s future from those who know it best.

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%	42.9%
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 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Persol HoldingsLtd

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persol Holdings Co., Ltd. operates globally, offering human resource services under the PERSOL brand, with a market capitalization of approximately ¥572.50 billion.

Operations: Persol Holdings' revenue is derived from several segments including BPO (¥110.80 billion), Career (¥128.28 billion), Technology (¥102.38 billion), Asia Pacific (¥412.77 billion), and Staffing excluding BPO (¥575.80 billion).

Insider Ownership: 11.8%

Earnings Growth Forecast: 12% p.a.

Persol HoldingsLtd, a Japanese company with substantial insider ownership, is trading at 54.8% below its estimated fair value, highlighting potential undervaluation. Recent share buybacks totaling ¥3.59 billion demonstrate commitment to enhancing shareholder returns. Despite an unstable dividend track record, Persol's earnings are expected to grow by 12% annually, outpacing the Japanese market forecast of 9%. Revenue growth is also projected to exceed market averages at 5.3% per year. However, this revenue growth rate does not reach the high threshold of over 20%.

• Dive into the specifics of Persol HoldingsLtd here with our thorough growth forecast report.

• Our valuation report unveils the possibility Persol HoldingsLtd's shares may be trading at a discount.

TSE:2181 Ownership Breakdown as at Jul 2024

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 ¥355.58 billion.

Operations: The company generates revenue primarily through the development of constrained peptides, small molecules, and peptide-drug conjugate therapeutics.

Insider Ownership: 26.1%

Earnings Growth Forecast: 22.3% p.a.

PeptiDream, a Japanese growth company with high insider ownership, has shown a volatile share price recently but is trading 11.6% below its estimated fair value. While profit margins have decreased from last year's 25.9% to 8.7%, earnings are expected to grow by 22.3% annually, outpacing the Japanese market's forecast of 9%. Recent strategic alliances and raised corporate guidance underscore its potential in innovative pharmaceutical development despite slower-than-desired revenue growth forecasts at 10.5% per year.

• Navigate through the intricacies of PeptiDream with our comprehensive analyst estimates report here.

• Our expertly prepared valuation report PeptiDream implies its share price may be too high.

TSE:4587 Ownership Breakdown 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, with a market capitalization of approximately ¥1.96 trillion.

Operations: The company generates revenue through its operations in e-commerce, fintech, digital content, and communications sectors internationally.

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.1% p.a.

Rakuten Group, a Japanese growth company with high insider ownership, is poised for notable advancement. The firm forecasts double-digit growth in consolidated revenue for 2024, excluding its volatile securities sector. Despite a lower than benchmark forecast return on equity at 8.9%, Rakuten's earnings are expected to surge by 83.11% annually over the next three years, significantly outpacing the broader market's expectations. Currently trading at 78% below its estimated fair value, Rakuten presents a potentially undervalued opportunity amidst its strategic growth trajectory.

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

• Insights from our recent valuation report point to the potential undervaluation of Rakuten Group shares in the market.

TSE:4755 Ownership Breakdown as at Jul 2024

Key Takeaways

• Dive into all 100 of the Fast Growing Japanese Companies With High Insider Ownership we have identified here.

• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.

• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Searching for a Fresh Perspective?

• 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:2181 TSE:4587 and TSE:4755.

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