Amidst a challenging week for Japanese markets, with the Nikkei 225 and TOPIX indices experiencing notable declines, investors are keenly observing shifts in market dynamics. This backdrop sets a compelling stage for examining growth companies with high insider ownership on the Japanese exchange, as such stocks may offer unique resilience and alignment of interests between shareholders and management in turbulent times.
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% | 43.3% |
| Micronics Japan (TSE:6871) | 15.3% | 39.8% |
| Medley (TSE:4480) | 34% | 28.7% |
| Kanamic NetworkLTD (TSE:3939) | 25% | 28.9% |
| SHIFT (TSE:3697) | 35.4% | 32.8% |
| Money Forward (TSE:3994) | 21.4% | 66.9% |
| ExaWizards (TSE:4259) | 21.9% | 91.1% |
| Astroscale Holdings (TSE:186A) | 20.9% | 90% |
| AeroEdge (TSE:7409) | 10.7% | 28.5% |
Here we highlight a subset of our preferred stocks from the screener.
Lifedrink Company
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Lifedrink Company, Inc. is a Japanese beverage manufacturer with a market capitalization of ¥92.58 billion.
Operations: The company generates its revenue through the manufacture and sale of beverages in Japan.
Insider Ownership: 14.6%
Lifedrink Company, a growth-focused entity in Japan, shows promising financial dynamics with its Return on Equity forecasted at 23.1% in three years. While its annual earnings are expected to grow by 9.4%, slightly above the Japanese market average of 8.9%, revenue growth projections are modest at 6.3% per year, outpacing the market's 4.3%. Despite trading near fair value and possessing high non-cash earnings, concerns include substantial debt and a highly volatile share price recently.
SHIFT
Simply Wall St Growth Rating: ★★★★★★
Overview: SHIFT Inc., operating in Japan, specializes in software quality assurance and testing solutions with a market capitalization of approximately ¥202.91 billion.
Operations: The firm focuses on delivering solutions for software quality assurance and testing.
Insider Ownership: 35.4%
SHIFT, a growth-oriented company in Japan, is poised for substantial financial expansion. With earnings projected to grow by 32.76% annually and revenue expected to increase at 21.2% per year, both metrics significantly outpace the broader Japanese market forecasts of 8.9% and 4.3%, respectively. Despite its high volatility in share price recently, SHIFT trades at a considerable discount of 44.7% below estimated fair value, enhancing its attractiveness amidst robust insider ownership that aligns management with shareholder interests.