8135 Zett
- Japan Guru
- Jul 20, 2025
- 1 min read
A major wholesaler of sporting goods, with sales channels to small sports shops around the country. Makes some baseball goods under its own brand. Also an import agency.
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"Zett (8135.T) is a possible deep-value play:
NCAV Ratio = 1.1
TBV Ratio = 0.64
EV/5Y FCF Ratio = 0.1
Upside to my calculation of fair value is around 75%, and it’s generated positive FCF in 9 out of the last 10 years.
What it is: Japan sporting-goods wholesaler/brand (cash-rich, inventory/receivables heavy).
Why mispriced: “dull” distributor optics plus small-cap Japan illiquidity.
Why it’s interesting: asset-backed, near-cash EV, real FCF, steady dividends. Margin of safety now; upside if governance/buybacks or working-capital release."
https://x.com/mr_deepvalue/status/1971517099953819654
"Not a great business but has been consistently profitable and cash flow positive for past decade... targets a 40% payout ratio and recently raised dividend by more than 2x...
...In the end, this one stays on the watchlist. Too many other opportunities where management is already doing the right thing."
https://x.com/RocksOver/status/1946045632986378744
at 428 yen/share, 8.6 bil yen mkt cap vs 11 bil yen net cash
9.52x per / 0.58x pbr / 4.21% yield