Report by Storm Research
Soracom generates nearly 70% of its sales from recurring revenue which is expected to grow through an expanding customer base and increased mobile connections as existing customers develop their IoT businesses. The business is scalable across various industries, with use cases including smart meters for Nippon Gas, remote management for Mitsubishi Electric Europe’s HVAC products, LUUP rental scooters, SumUp payment terminals, and Sollatek refrigeration systems. Global scalability, especially in the US and Europe, is anticipated with minimal additional investment. Overseas revenue made up 36.4% of FY 3/24 sales and is growing quickly. The stock is undervalued relative to its long-term potential and minimal coverage suggests the stock price will rise as investors become more familiar with the potential of the company.