Built. Different.

research report

Hello,

It’s time for the final research report of what has been a strong year for both markets and micro-caps.

I should start by thanking my friend gezzogero, who originally flagged this idea to me, saying it gave him “Lindbergh and Michele (Lindbergh’s CEO) vibes.” That comment pushed me to dig deeper—and the more I read, the more I liked what I saw.

This one is a boring Japanese business in a boring industry, but it’s running a strategy with a unique twist that peers haven’t been able to replicate.

The result is a business that’s grown revenue at a 13% CAGR over the past seven years—and done so with remarkable consistency. Filings show growth in every single quarter since listing, and available data prior to that points to year-on-year growth back to 2018, with the weakest year still posting 8.9% growth. At the same time, the founder-CEO’s obsession with costs has steadily tightened operations, driving margin expansion every single year and pushing EBIT growth to a 33% CAGR over that seven-year period.

I think the road ahead looks at least as bright as the historical numbers suggest (especially in the near term), yet the market isn’t giving the company much credit at 8–9× forward EV/EBIT and 9–10× forward P/E.

But this only scratches the surface. There are more interesting insights and important details beneath the numbers, so let’s dig in.