Author Topic: 7292.JP - Murakami Corp.  (Read 6872 times)

west

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7292.JP - Murakami Corp.
« on: July 22, 2014, 10:42:36 AM »
Here's a hidden champion trading at a fraction of what its worth.  Murakami Corp is a leading (if not the leading) manufacturer of automobile rearview mirrors in the world.

The numbers:

EV/TTM EBIT of 1.12x.  EV/TTM EBITDA of 0.73x.  EV/Most recent year FCF of 1.65x.  Trading at half of tangible book value despite growing book value by over 14% during three out of the last four years.  Historic ROIC over last four years of ~25%+.

Caveats: As with the other Japanese companies I've posted here and will post here, I can't read the financial statements for this company.  So I'm investing in them just based on the numbers I get from Financial Times, MSN Money, and the Japan Company Handbook.  I keep my Japanese company position sizes small to reflect this.

As another caveat, Murakami has the largest order block size requirement of any Japanese company I've seen.  You have to buy shares in 1,000 blocks, and the trading price is currently 1,420Y per share.  So a minimum $ value investment is about $14,000 just to get your foot in the door.


writser

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Re: 7292.JP - Murakami Corp.
« Reply #1 on: July 22, 2014, 11:02:00 AM »
Interesting idea, thanks. As with other Japanese companies though: what's the point of a high ROIC if you don't manage their excess capital? The amount of cash on the balance sheet is just ... staggering :) . Some Japanese guy should go Carl Icahn on these companies. Lots of potential gains. Will have a more detailed look later.
« Last Edit: July 22, 2014, 11:03:45 AM by writser »
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west

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Re: 7292.JP - Murakami Corp.
« Reply #2 on: July 22, 2014, 11:07:35 AM »
And even with all that excess capital its P/E is < 5.5x :D

yadayada

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Re: 7292.JP - Murakami Corp.
« Reply #3 on: July 22, 2014, 01:36:04 PM »
imagine if one of these things suddenly decides to do a bunch of buybacks (with decent liquidity)

  :o .

Is there a japanese translated book of outsiders? Can probably buy a basket of these stocks and then send all the CEO's and CFO's a copy of that book with maybe a nice samurai sword or something :D

randomep

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Re: 7292.JP - Murakami Corp.
« Reply #4 on: July 22, 2014, 02:01:25 PM »
imagine if one of these things suddenly decides to do a bunch of buybacks (with decent liquidity)

  :o .

Is there a japanese translated book of outsiders? Can probably buy a basket of these stocks and then send all the CEO's and CFO's a copy of that book with maybe a nice samurai sword or something :D

For hari-kiri?

yadayada

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Re: 7292.JP - Murakami Corp.
« Reply #5 on: July 22, 2014, 02:28:38 PM »
imagine if one of these things suddenly decides to do a bunch of buybacks (with decent liquidity)

  :o .

Is there a japanese translated book of outsiders? Can probably buy a basket of these stocks and then send all the CEO's and CFO's a copy of that book with maybe a nice samurai sword or something :D

For hari-kiri?
no to slay down their cash balances 

writser

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Re: 7292.JP - Murakami Corp.
« Reply #6 on: November 12, 2014, 04:47:07 AM »
For those interested I uploaded a (Google) translation of their latest quarterly released today.

http://writser.nl/beurs/murakami-q2.html

Positives: earnings p/s for the last 6 months ~146 yen. CFFO ~170 yen for the same period. Cash p/s ~1400 yen. Book value p/s ~2850 yen.
Negatives: revenue slightly down. Comprehensive income took a hit due to foreign currency adjustments.

Still, looks so cheap at 1675 yen you wonder what you are missing.
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oddballstocks

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Re: 7292.JP - Murakami Corp.
« Reply #7 on: November 12, 2014, 05:50:38 AM »
I read the following this weekend and I think it describes some of what we see in Japan very well.  This is written from the perspective of an American who moved to Japan and started a business there. 

Excess capital and risk taking are covered under the umbrella of culture and conservatism. 

http://www.kalzumeus.com/2014/11/07/doing-business-in-japan/
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peter1234

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Re: 7292.JP - Murakami Corp.
« Reply #8 on: November 12, 2014, 06:40:29 AM »
I read the following this weekend and I think it describes some of what we see in Japan very well.  This is written from the perspective of an American who moved to Japan and started a business there. 

Excess capital and risk taking are covered under the umbrella of culture and conservatism. 

http://www.kalzumeus.com/2014/11/07/doing-business-in-japan/

Thanks for a great link!
 :)

plusalpha

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Re: 7292.JP - Murakami Corp.
« Reply #9 on: November 12, 2014, 09:03:44 AM »
Thanks oddball, for really a great link.

couple of my friends are in Japan doing biz in variety of area ranging from recruiter, bar and restaurants.
As per them, its not that difficult to work with the Japanese Authority to get paper work done.Usually people are more cooperative.
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