Is There Such a Thing as a Sure Thing? Have a look at this.

Charging & Fearless is the only newsletter that delivers under-the-radar, global stock picks before they make front-page news. We traverse borders to uncover the explosive potential of international companies beyond the scope of Wall Street analysts. Enjoy the 5-minute pitch on this week’s stock below...

Japan Elevator Service Holdings

Japan Elevator Service Holdings Co. is a leading independent elevator maintenance company in, you guessed it, Japan. Founded in 1994, the company has grown steadily to become one of the largest providers of elevator maintenance services in the country. It offers a wide range of services, including preventive maintenance, modernisation, and mandated inspections. The number of elevators in use in Japan is 1.1 million.

Primed to Grow

Of all the hidden gems discovered by Charging & Fearless (which is built to improve with data), Japan Elevator Service made us sit up straight. The business has increased revenues every single year since its foundation, with a ten-year compounded growth of almost 17%. Return on equity has been above  — generally, way above — 20% for nine of the last ten years, and every metric in the comprehensive deck linked below has been on a positive tear.

If you have a moment, jump to Page 17 of the deck, where JES outlines its vision to increase its market share by 62.5%, going from 8% overall share today to 13% by 2027.

In Their Own Words

What Could Go Wrong?

New elevator and escalator models are constantly being released and installed, which brings risks associated with parts and skills. Also, The Building Standards Act stipulates that statutory inspections of maintenance and repair work performed by JES shall be performed by qualified inspectors, meaning they need to attract, train, and retain the right folks. The company also operates under a license for machinery and equipment installation, which is a stop-go for their business. Its loss is highly unlikely, but it would really hurt.

Final Word

Subscribe to Invest to read the rest.