[Update] Japan’s most mispriced compounder

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In June, I wrote up a small Japanese software company with a giant mismatch between cash generation and reported earnings across two segments where one is growing much faster than the other behind the curtain, and that these two factors together provided an attractive setup.

The company reported Q32026 two days ago, and it was a banger of a quarter. More on that, including my simple 5-year model down to FCF and the multiple, behind the paywall:

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