Professional
Added to YB: 2024-07-24
Pitch date: 2024-07-22
4732.T [bullish]
USS Co., Ltd.
+31.62%
current return
Author Info
Sweet Stocks is a former portfolio manager at an international small cap fund who shares pitches for international equities. Sign up for his blog.
Company Info
USS Co., Ltd., together with its subsidiaries, operates and manages used vehicle auction sites in Japan.
Market Cap
JPY 748.8B
Pitch Price
JPY 1.3K
Price Target
N/A
Dividend
3.07%
EV/EBITDA
10.75
P/E
20.15
EV/Sales
6.13
Sector
Specialty Retail
Category
value
USS – Japan’s car auction winner
USS: #1 Japan car auction (40% share), 17% ROIC, 5% FCF yield. Strong moat, pricing power (1.2% CAGR fees). 6.4% 25yr rev CAGR. Resilient thru cycles. Exports boost. 80% payout. Cons: low growth. 18x P/E, 63% margins. M&A/buyback potential w/ Y106bn net cash (16% mkt cap). Non-core biz (Rabbit, recycling) immaterial.
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