Ongoing Coverage [THEME: Japan]: Continuing The Search For Hidden Gems

Seeking out potential gems in Japan, this time with two companies operating B2B razor-and-blades business models at single-digit EBIT multiples.

Hello Capital Light readers!

Japan continues to be an interesting market due to low valuations combined with a concentrated effort in the country to prioritize and increase shareholder returns.

I’ve discovered two new interesting ideas, both deploying stable, modestly growing B2B recurring revenue “razor-and-blades” business models. Both have strong balance sheets and trade at EV/EBIT multiples under 11.

This is my short preliminary look at both.

Let’s dive in!