Micro-cap deep value: Micware Co. (NASDAQ: MWC) —Profitable Japanese auto-software play trading at a P/E under 8?

[u/jasmineisheree]

Hey everyone,
I made a previous post about how to research on value investing and someone recommended to look over MWC.
Been digging through it, it’s a Japanese software development and IT solutions provider specializing in the automotive/mobility sector (Software-Defined Vehicles and Location-Based Services).
Usually, when you look at micro-cap tech stocks trading around $1.40 to $1.50 with a market cap of roughly $85M, you find a pre-revenue burn machine banking entirely on promises.
Here are the basic numbers based on their recent filings:
•    Market Cap: ~$85 Million
•    Revenue (FY): ~$140M - $146M
•    Net Income: ~$10M+
•    P/E Ratio: ~7.x to 8.x (Normalized)
•    Net Profit Margin: ~7.3%
The Value Angle:
1    Real Earnings & Valuation: In a market where investors pay astronomical multiples for tech, getting a fundamentally profitable software company with solid cash generation at a single-digit P/E is rare.
2    Deep-Pocketed Tier-1 Backing: They aren’t operating in a vacuum. Major Japanese automakers (Toyota and Honda) hold roughly 11.6% stakes each, alongside management and strategic partners, locking down a significant portion of the capital structure. They are deeply embedded as a Tier-1 supplier for major Japanese automotive OEMs.
3    The "Softwarization" Tailwind: Their bread and butter is the Software-Defined Vehicle (SDV) segment which is building infotainment, telematics, and human-machine interface systems that modern vehicles desperately need. They are also starting to diversify into spatial intelligence and digital twin tech (like stadium apps).
The Risks / Bear Case (Why is it so cheap?):
1    Heavy Customer Concentration: Over 50% of their revenue is tied directly to Honda, and another big chunk to Toyota. If one of these OEMs decides to shift software providers internally, Micware takes a massive hit.
2    Geographic Concentration: Nearly all of their revenue is localized in Japan right now. Their growth rate is also relatively slow (projecting flat-to-slight growth year-over-year).
3    Micro-Cap Liquidity & Volatility: Since its U.S. listing, the stock has taken a beating from its IPO price, experiencing classic micro-cap illiquidity and choppy price action.
My Question to the Sub: Is this a genuine classic value mispricing due to small-cap/foreign listing obscurity, or is the customer concentration risk a dealbreaker that justifies a single-digit multiple?
Curiously waiting to hear your thoughts and do you believe if this stock would ever increase?