Stock Snapshot
Ticker: TSE: 3923
Sector: Software and IT Services (SaaS)
Current Price: 882 JPY
Market Capitalization: 318.1 billion JPY
Trailing P/E Ratio: 26.5x
The SaaSocalypse is dragging wildly profitable Japanese software-as-a-service stocks down by 50 percent or more. The global story driving this panic is that AI will commoditize software, allowing anyone to build their own SaaS tools from scratch.
In the United States, there might be some truth to it…
But Japan is not the US. Japan currently ranks 31st globally in digital competitiveness. Right now, over 70% of manufacturing orders in Japan are still received via physical fax machines!
These companies do not have developers. They have an aging workforce that is actively hostile to changing their daily routines. The idea that a 60-year-old accounting manager in Osaka is going to sit down and vibe-code a secure, legally compliant, cloud-based expense reimbursement system is a pure Silicon Valley delusion…
In this environment of irrational market panic, I find Rakus (TSE: 3923) to be the most interesting stock in the entire Japanese technology sector. As a pure value investor, I look for heavy cash generation. I look for deep competitive moats. I look for mispriced equity.
Rakus checks every single box.
