Today we added a small starter position in ZIGExN Co., Ltd., a Japanese company specializing in matching platforms across HR, real estate, and lifestyle services.
Although ZIGExN’s recent growth looks mediocre on the surface, our Simulated WB2025 (“Warren Buffett 2025”) scoring system focuses heavily on business quality over short-term numbers.
1. Strong Financial Health
- Negative net debt → A fortress balance sheet with more cash than debt.
- Positive free cash flow → Even with soft earnings, they are still generating cash.
- Decent return on equity (ROE ~20%) → Shows internal capital is efficiently managed.
2. Business Quality Metrics
- High Gross Profit Margin (82%) → Strong pricing power or an efficient business model.
- Strong Book Value vs. Market Price → Safety cushion if things go wrong.
- Cash reserves → Critical for surviving downturns and reinvesting opportunistically.
- PFCF Ratio of 5.47 → “Buffett-style” cheapness relative to cash generation.
- Low PEG Ratio (0.25) → Valuation remains cheap compared to growth expectations.
4.
Management & Ownership
- Inside Ownership is strong (shows alignment).
- Founder involvement — ZIGExN still has significant founder influence, a big plus in WB2025 scoring.
🧠 In Short:
✅ Business Model = Scalable and high-margin
✅ Financial Health = No debt, strong cash flows
✅ Valuation = Cheap relative to cash generation
✅ Management = Aligned with shareholders
🔔 Warning: Growth is not “exciting” right now, so position sizing small is crucial — we treat this as a “wait and see” investment, not a “full conviction” one yet.
No financial advice, testing the company and our valuation scoring system 🦆