I found a way to access Bloomberg’s no.1 competitor for 90% less. Here’s how →
Today’s business has been operating for more than 100 years.
It sells everyday food products through some of the largest retailers in Japan.
Revenue is stable, margins are improving, and profits are growing.
Management has increased the dividend by 50% over the last few years and has started buying back stock.
I also believe the business can sustainably generate roughly ¥1.5b in Owner-FCF each year, on average.
That puts the entire operating company on sale for around 3x cash-earnings.
That’s usually enough to stop me scrolling.
But then I discovered the company also owns an income-producing property portfolio.
The value of the property isn’t disclosed but the annual rental income is.
Using a fairly ordinary 6% yield, I estimate those properties are worth around ¥15b.
That’s more than 3x the EV acquisition cost.
That EV calculation includes almost ¥14b of liquid, cash-like financial assets.
Crucially, the ownership structure doesn’t block an activist from coming along to unlock all this value.
Let’s take a look…