What Is Japan Small Cap Radar?
Japan Small Cap Radar is an independent research blog focused on
deep-value investing in Japanese small- and mid-cap stocks.
We apply quantitative screens inspired by Benjamin Graham’s
Net-Net framework to the TOPIX universe, surfacing companies that may
be trading below their intrinsic liquidation value.
The Screening Methodology
Our core screen targets Net Current Asset Value (NCAV):
NCAV = Current Assets − Total Liabilities
A stock qualifies as a Net-Net candidate when its market capitalisation falls
below NCAV, meaning investors are effectively paying less than liquidation
value for the business. Graham famously described this as buying “dollar bills
for fifty cents.”
In addition to the NCAV screen, each candidate is evaluated on:
- Growth Scout — revenue growth, operating margin trend, and EPS revisions
- Value Guard — PBR, PER, equity ratio, and ROE
- Demand Scout — relative volume, price momentum, and breakout signals
These three dimensions feed into an Investment Committee
composite score. Only companies with strong demand signals and
reasonable fundamentals receive a BUY verdict.
Universe
We screen approximately 1,500+ listed Japanese companies
drawn from the TOPIX Mid400, Small 1, and Small 2 indices — segments that
tend to be under-researched by institutional analysts and therefore more
likely to harbour pricing inefficiencies.
How Often We Publish
New stock analyses are published three times per week
(Monday, Wednesday, and Friday). A weekly summary of recent screening results
and portfolio signals is distributed to newsletter subscribers every Friday.
About the Author
Japan Small Cap Radar is run by a private investor with a long-standing
interest in quantitative value investing and Japanese equities. The site is a
personal project and is not affiliated with any financial institution.
Limitations
Quantitative screens are a starting point, not a conclusion. The models used
here have known limitations:
- Financial data from J-Quants typically lags by 1–3 months.
- NCAV screens can generate false positives (e.g., asset-heavy but cash-poor companies).
- Small-cap liquidity risk is real — position sizing matters.
- This site covers Japanese-listed companies; currency risk applies to overseas investors.
Please read our Disclaimer before acting on any content.
Contact
Questions, corrections, or tips? Use the Contact page.