Dear Readers,
Welcome to another edition of ROE The Boat.
For this issue I want to share with you an founder-led Japanese microcap with ‘sticky-niche-software’ that has…
70% operating margins
25% ROCE
Zero debt
A cash pile that just keeps growing
And there’s an extra twist… that same founder-heavy ownership structure has now bumped up against an actual regulatory ceiling - one that could force his hand on what happens to all that cash next.
This week, we’re rowing the boat over to Japan to find out why this ignored little “plumbing” business might be one of the more interesting setups in Japanese microcaps right now.
Let’s dive in…
Please note: this article should act as an introduction to the company mentioned and is not a complete deep dive. Make sure you do your own research before investing in any company mentioned in this newsletter.