I really like what you are writing about the company. But a realisation of it‘s valuation potential would need a more progressive management‘s approach regarding capital allocation. Do you see some triggers causing that? Otherwise undervaluation could go on for a very long time.
The Price of Steel is rising because of demand. Maybe Yodogawa can benefit from it...
Thank you for the write up. Rare to see one of these consistently buying back shares.
Any idea why that paused in 2022? The inventory build?
Patience is definitely easier with companies like Yodogawa which at least pay a decent dividend.
I really like what you are writing about the company. But a realisation of it‘s valuation potential would need a more progressive management‘s approach regarding capital allocation. Do you see some triggers causing that? Otherwise undervaluation could go on for a very long time.
Great post ! It’s incredible how cheap japanese companies can be !
Welcome!
Unfortunately true. I don't know why they stopped buybacks.
Build-up can be explained with significant sales increase ==> need for WC
It reversed in H12023 though!
https://www.yodoko.co.jp/english/ir/result/pdf/2023/2q_a.pdf