Dear Readers,
Welcome to another edition of ROE The Boat.
For this issue I want to share with you a Japanese microcap that has…
70% operating margins
25% ROCE
Zero debt
A cash pile that just keeps growing
High insider ownership
Trading on a EV/EBITA of 7.
There’s also an extra twist… that same founder-heavy ownership structure has now bumped up against a regulatory ceiling, which could force his hand on what happens to all that cash sitting in the bank.
This week, we’re rowing the boat back over to Japan to find out why this ignored little “plumbing” business might be one of the more interesting setups in the land of of Japanese microcaps.
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.