A Cash-Rich Compounder in Japanese Specialty Manufacturing
Multi-segment growth, 11% ROE, and a long history of dividend increases — all trading at under 4x EBITDA.
Welcome to my Substack, where I delve into the world of truly undiscovered companies from across the globe. Everyone is talking about the same 200-300 stocks, but there are more than 55,000 publicly traded companies in the world. Here, we explore hidden gems in the financial markets that often fly under the radar of mainstream analysts and investors.
Teaser
In a market that often prizes innovation over quiet execution, one Japanese industrial has steadily delivered what long-term investors value most: double-digit returns on equity, consistent free cash flow, and a clean balance sheet with ¥48 billion in cash. Operating across automotive, electronics, medical, and infrastructure sectors, it has grown earnings and dividends year after year — all while trading at under 4x EBITDA and just 0.6x book. Yet the market continues to overlook its steady performance and disciplined capital allocation. For those willing to look beyond the headline sectors, the disconnect is hard to ignore.