Nihon Unisys (TSE:8056, Financial) (Japan) is a system integrator (SI) company. Japan lags behind most developed nations in terms of digitizing its economy, which–combined with the country’s shortage of IT engineering talent–should bode well for the Japanese SI market’s structural growth. We were able to acquire shares of the company at a discount to our estimate of intrinsic value after management announced lower earnings guidance than the market had anticipated, which we consider to be transitory in nature. Over the long term, we believe the company can significantly expand margins and continue to generate healthy free cash flow
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund second-quarter 2021 letter.
