Tag Archives: 9795.T

Step Co. (9795.T), mcap=JPY 28.8bn, price JPY 1738 vs JPY 1706

Japanese education test prep company with 30k students and 154 locations in Kanagawa prefecture. Cash + real estate equal to current EV. Investors get operating business for free. 27 years of revenue/profit growth. Strong focus on quality – above average teacher salaries/benefits, well-chosen location within a single core area. Multiple grow avenues. At 10x PE and 5.4x, EV/EBIT is cheap historically and vs peers. Founder/management/employees own almost 50% of the stock. Since 1995 returned 100% of cumulative FCF in dividends and repurchases.