A quick idea trading <5x FCF with double digit growth
An important catalyst and a solid shareholder base
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Disclosure: The author currently owns shares in the company as of 12 May 2025. The security could be sold at any point in time without prior notice.
It’s pretty unusual for me to be writing this often - especially bc I debated whether I should even write a new idea, given earnings on this are coming soon. But I figured in this case, it’s probably better to be early than late. (Famous last words…) I wanted to quickly share the idea as a ‘one-pager’ first so at least you’re aware of it and go in-depth after earnings. I also wanted to see if I can write something in short form for once and force myself to distill an idea.
I liked the setup, and I couldn’t shake the feeling that they may come out with some potentially good news soon. Though maybe not on the day of results. In any case the business had a lot going for it that I liked:
Recurring revenue
Best in class churn with strong referral customers
Solid double-digit growth opportunity
Operating leverage potential
Potentially misunderstood business
A near-term catalyst that could materialise
A fantastic shareholder base
All going for a ~5x FCF multiple
I want to provide fair warning here that this business is a microcap and illiquid so may not be actionable to some of you.