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 call Otto - up 130% since Sep 2022 plus dividends!
Thanks Michael. But Actually up 200% (excl. Divdends) since first mentioning the Company
on my old blog in October 2020 @1932.
15% Dividend Yield on initial Investment.
And the best of it. Still loads of flesh on the bone IMO!
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.
Agree.
Still too little in terms of adjusted earnings though!
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.
No not seeing that at the moment.
And yes. Undervaluation could go on for long time. Patience is paramount when it comes to deep value investing.
Great post ! It’s incredible how cheap japanese companies can be !
Thanks.
Yes, annoyingly cheap for a long time,
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