Three Undiscovered Japanese Gems Poised For Potential Growth

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Japan's stock markets have experienced significant volatility recently, driven by a rebounding yen and concerns over global growth. Despite this turbulence, the Nikkei 225 Index and the broader TOPIX Index managed to recoup much of their losses by week's end. In such a dynamic environment, identifying potential growth stocks requires a keen eye for companies that demonstrate resilience and adaptability. Here, we explore three lesser-known Japanese stocks that show promise amid these fluctuating market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Japan

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

AOKI Holdings

28.27%

0.91%

37.15%

★★★★★★

ITOCHU-SHOKUHIN

NA

-0.08%

12.04%

★★★★★★

Ogaki Kyoritsu Bank

130.22%

1.61%

-0.98%

★★★★★☆

Marusan Securities

5.33%

1.01%

10.00%

★★★★★☆

YagiLtd

32.86%

-9.57%

-0.12%

★★★★☆☆

CAC Holdings

14.97%

-0.57%

5.02%

★★★★☆☆

Toyo Kanetsu K.K

45.07%

2.00%

11.94%

★★★★☆☆

Yukiguni Maitake

170.63%

-10.20%

-39.66%

★★★★☆☆

Hakuto

56.93%

8.02%

27.72%

★★★★☆☆

FDK

89.57%

-0.88%

25.34%

★★★★☆☆

Click here to see the full list of 715 stocks from our Japanese Undiscovered Gems With Strong Fundamentals screener.

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

Noritake

Simply Wall St Value Rating: ★★★★★★

Overview: Noritake Co., Limited, with a market cap of ¥105.99 billion, operates through its subsidiaries to provide industrial, ceramic and material, engineering, and tabletop products both in Japan and internationally.

Operations: Noritake Co., Limited generates revenue primarily from industrial, ceramic and material, engineering, and tabletop products. The company has a market cap of ¥105.99 billion.

Noritake, a notable player in the ceramics industry, has seen its debt-to-equity ratio improve from 5.6 to 4.3 over five years and earnings grow at an annual rate of 20.5%. Trading at 62.6% below estimated fair value, it presents a compelling case for value investors. The company recently announced a share repurchase program worth ¥2,500 million to enhance shareholder returns and capital efficiency by canceling all repurchased shares.

TSE:5331 Debt to Equity as at Aug 2024
TSE:5331 Debt to Equity as at Aug 2024

Lifenet Insurance

Simply Wall St Value Rating: ★★★★★★

Overview: Lifenet Insurance Company offers life insurance products and services in Japan, North America, and internationally, with a market cap of ¥120.48 billion.

Operations: Lifenet Insurance Company generates revenue primarily from life insurance premiums across Japan, North America, and international markets. The company's net profit margin for the most recent period is 5.23%.