Welcome to another edition of ROE The Boat.
For the September issue we’re sailing to the Far East.
While the large and mid cap listed companies in Japan look fully valued there are plenty of cheap companies to be found at the smaller end of the spectrum.
We’re going to present to you four Japanese microcaps that are flying under the radar.
Three are deep value, while the other is a higher quality business with 25% operating margins and 45% returns on capital employed - and it’s trading on a forward single digit P/E multiple.
Let’s start with the companies trading at a deep discount to their net asset value.
Please note: this article should act as an introduction to the companies and is not a complete deep dive. Make sure you do your own research before investing in any company mentioned in this newsletter.