I dont know if anybody ever mentioned this stock on this sub. I invested a small position of my portfolio a few months ago, maybe 1 percent of the portfolio into the company and its down since but i am still very comfortable with the numbers.
They are a provider of simple industrial material in the japanese market, giant online platform. I checked the market share in japan with gemini so no safety on that one but it told me that they expanded market share around 25 percent but overall just hold 4 percent in the japan market. They also expand into other markets such as indonesia and india. They deliver products very quickly and got a pretty good supply chain but the market in japan is still very much fragmented and many small businesses still shop at small vendors. The thing i am a bit worried about the company is, that they don't have a really realiable moat expect of infrastructure of the supply chain, the range of inventory they deliver, and the network effects. Of course a headwind might be the aging japanese population and therefore reduction of the mercants in Japan really needing the products. However because of expansion into other markets i am not too worried about it.
Otherwise fundamentals seem strong to me. They tripled revenue, earnings per share and profit since 2019. Free cashflow would cover debt in one year and they got a ton of cash around. Cashflow was shrinking but turned in recent years and is now growing even tho 2025 was a dip again. They also got a ROIC of 27 and a gross margin of 27.
however, the P/E of around 26 could be high and it is in an downward trend which could of course still be a falling knife.
however i am quite positive on the company and wondering if i am overlooking anything with this japanese company or if it could be a solid boring business with good growth. Has anyone else ever checked it out or any thoughts on it?