The most consistent company in Japan
The global account receivable guarantee market is highly specialist, allowing businesses to protect themselves against the risk of potential client bankruptcy.
In Europe approx. 15% of account receivables are guaranteed. The figure in the US is 8%, but in Japan it is just 0.5%.
In Japan the dominant operator, in what remains an underdeveloped but growing market, is a company called eGuarantee (8771). 3 stats tell their own story:
1. Since March 2007 it has grown operating profit at a CAGR of +26%.
2. Since March 2009 its annual dividend has risen from Y3.75 to Y40, increasing every year at a CAGR of +34%.
3. It has beaten its operating profit target for 10 consecutive years & has never revised down.
What has that consistency been worth? Since listing the shares, on a stock split adjusted basis, have risen from Y638 to Y3,740, +486%, to leave the company worth Y39bn (approx $360m).
We contend eGuarantee is Japan’s most consistent company & challenge you to find a better candidate (send it to us at @Storm_Research).
Meantime institutional investors get in touch for our latest report, ‘Metronomic’.