4058 Toyokumo

Toyokumo sells software companies use to confirm employees are safe after disasters, plus tools that extend Cybozu's kintone platform. Revenue rose 54% in FY2025 and is forecast up 19%.

▲ Japanese companies are effectively required to prepare for disasters, so the safety product sells itself. Paying customers rose 13% and each pays 10% more.  ▼ Much of the business depends on Cybozu's kintone platform, and the NotePM wiki product fights Notion and others in a crowded small-business market.

Toyokumo leads the safety-confirmation market and earns a 33% operating margin. One quarter hit 43% — but ad spending was down that quarter, so nobody knows yet if 43% is real.

▲ Customers keep moving to bigger plans and paying more, and most of each extra yen of sales becomes profit.  ▼ Everything rides on one platform, kintone. Some of last year's advertising was spent defensively, and profit by product is not disclosed.

Founder-CEO Yamamoto controls about half the shares. The company did its first buyback in 2026, has raised the dividend every year, and holds ¥4.4bn of cash against small needs.

▲ The first buyback was finished faster than small companies usually manage, and the company spent ¥1.33bn buying NotePM — it can deploy cash.  ▼ The buyback was tiny — about 1.4% of the company. The stated policy is just 'as appropriate,' and one person makes every big decision.

The business sells for 9.2 years of operating profit. Its capital earns 38.5%. Net cash is 17.8% of the market cap; 22.6% of profit goes out as dividends. Today's dividend yield is 1.4%. If the company paid out all of its profit, the yield at today's price would be 6.1% — past the 6% level where Japanese small caps tend to find buyers. Raising the payout 10 points a year would reach 6% in about 7.5 years. At the current payout, the cash pile alone equals today's market cap in about 17.4 years. How this valuation floor works →