Quality Investor

Micware Co., Ltd.

Rank #195Value

MWC · Nasdaq · Consumer Cyclical

Micware Co., Ltd. (MWC) — Rank #195 by gross profitability (GP/assets 0.33) · ROE 20.0% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0002083526 · all metrics point-in-time as of the filing date.

About

Micware Co., Ltd. provides software development services and information technology solutions focusing on the automotive and mobility sectors in Japan and internationally.

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The company operates three segments: Software Defined Vehicles, Location-Based Services, and Others. Its Software Defined Vehicles segment develops and sells software systems designed for SDV, including in-vehicle infotainment (IVI) system software and other mobility-enhancing software products. The Location-Based Services segment engages in the development and licensing of in-vehicle navigation software systems, and other geographic data-based services for business-to-business customers. Its Other segment comprises software development services for SDV, and business-to-consumer mobile app services unrelated to in-vehicle navigation. It engages in the development and sale of IVI systems that for automotive multimedia, navigation, human machine interface, telematics, and driver assistance. The company also specializes in the development of navigation software and location information-based smartphone applications. Micware Co., Ltd.

was incorporated in 2003 and is headquartered in Kobe, Japan.

Industry
Auto Parts
Sector
Consumer Cyclical
State
M0
Filer Category
Non-accelerated filerEmerging growth company
Fiscal Year End
February 28

Price History

MWC-82.7% · -99.5% CAGRSPY+2.4% · +7.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$114.68M

P/E (annual)

0.1

P/S (annual)

0.0

P/B

0.0

P/OCF (annual)

0.1

Shareholder Yield

-7.4%

Employees

483

Industry

Auto Parts

Exchange

Nasdaq

Signal Flags

2 green1 yellow
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.33
Return on equity
20.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.93
Current ratio
1.66×
Net cash
$5.21B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue

Growth

1/2 pass
Revenue growth
3.7%
Piotroski F-Score
6 / 9
Share dilution
7.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-94.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 7.4% — per-share value needs a total required return of -87.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-94.6%

r = 10% (base)

-94.5%

r = 12%

-94.4%

Net debt / market cap: -4815.8%

Base FCF: $2.1B3Y mean FCF: $2.1B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

0.1xCheap
0.1xmed 0.1x0.1x

P / S

Price / revenue per share

0.0xFair
0.0xmed 0.0x0.0x

P / B

Price / book value per share

0.0xCheap
0.0xmed 0.0x0.0x

P / GP

Price / gross profit per share

0.0xCheap
0.0xmed 0.0x0.0x

P / FCF

Price / free cash flow per share

0.1xFair
0.1xmed 0.1x0.5x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

39th pctl of 98 SIC 73 peers

Return on equity

20.0%

Gross margin

36.8%

16th pctl of 97 SIC 73 peers

Revenue growth (YoY)

3.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.93

1st pctl of 87 SIC 73 peers (best = lowest)

Current ratio

1.66×

42nd pctl of 97 SIC 73 peers

Quick ratio

1.14×

Net cash

$5.21B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$2.05B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.28

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20242026
Value