mjohn707 Posted October 1, 2014 Share Posted October 1, 2014 Tanabe Engineering is an industrial plant construction contractor based in Joetsu City, Japan. At the recent price of 749 it trades for about 7 times the 7-year average EPS of 112, and about 40% of the book value per share of 1919. Over the last seven years ROIC has been in the 7-8% range. The company has no net debt. Looking over the earnings record in the most recent japan company handbook, it looks like they might have taken a hit around the time of the Fukushima disaster and only partially recovered. I think it's worth 80-100% of book value based off of the ROICs. Shares are pretty illiquid and trade in 100 share round lots on the Tokyo exchange. Link to comment Share on other sites More sharing options...
west Posted October 1, 2014 Share Posted October 1, 2014 Looking over the earnings record in the most recent japan company handbook, it looks like they might have taken a hit around the time of the Fukushima disaster and only partially recovered. mjohn, most engineering/construction companies I've looked at in Japan had dips in earnings around 2011. I think it has to do with the nature of the business (cyclical?) than, say, anything to do with the earthquake/tsunami. For what it's worth, Joetsu is on the other side of Japan from where the tsunami happened (although even the west coast got some of it). You can check what got hit worst here: https://en.wikipedia.org/wiki/2011_T%C5%8Dhoku_earthquake_and_tsunami#mediaviewer/File:Tsunami_map_Tohoku2011.svg You can see where Joetsu is in Japan here: https://goo.gl/maps/MBgrb Link to comment Share on other sites More sharing options...
mjohn707 Posted October 1, 2014 Author Share Posted October 1, 2014 Thanks for the response! I didn't mean to imply that they suffered damage because of the tsunami, but instead that maybe they were hurt because of the economy after the tsunami. I actually don't know how the economy did after the tsunami however Link to comment Share on other sites More sharing options...
west Posted October 1, 2014 Share Posted October 1, 2014 I don't know myself, but it definitely looks like the economy contracted for some reason during 2011! http://www.tradingeconomics.com/japan/gdp-growth It wouldn't surprise me if it had something to do with the tsunami. (The graph changes to a bar chart showing individual quarters if you do a shorter time span, like 2010 to 2012.) Link to comment Share on other sites More sharing options...
mjohn707 Posted February 16, 2017 Author Share Posted February 16, 2017 Not sure if anyone else is in this one, but I sold my shares today for 1323. The price has run up quite a bit over the last month or so, and it's at about a 10 year high Link to comment Share on other sites More sharing options...
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