10% Dividend Yield & 4.8x FCF
With 44% of the market cap in cash and a highly cash-generative operating business.
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This Japanese healthcare-software business currently trades at a market capitalisation of just ¥9.65b.
The market is pricing the company as though its core business is permanently impaired, and management will burn through its enormous cash reserves.
At first glance, the fear appears understandable.
Consolidated operating profit guidance for 2026 collapsed from ¥2.02b in 2025 to just ¥400m.
Interim operating profit even swung into a small loss.
The market saw this and concluded that the underlying economics had broken permanently.
The economic reality looks entirely different.
This business is a profitable, cash-generative healthcare platform holding ¥4.25b of extractable cash.
That means roughly 44% of the entire market capitalisation is backed by free-and-clear liquidity.
After adjusting for debt-like obligations and truly economic liabilities, the real acquisition cost of the operating business is only ¥6.31b.
Against that acquisition price, the business appears capable of sustainably generating roughly ¥1.3b of owner free cash flow.
The market is offering us a dominant business for under 5x FCF while heavily protecting downside with a fortress balance sheet.
The disconnect between price and reality here is pretty extreme.
Let’s take a look…