Fast-growing at 25%/year and a forward EV/EBIT of 3.3
Yep, I’m buying
Sometimes, investing can be simple.
Sometimes, there are no complicated business models to understand, product portfolios to entangle (I’m looking at you, Hyloris), hidden assets to value, or turnarounds to assess.
Once more, pattern recognition and the past compounding of knowledge kicks in, as this company does business in the payments sector. (to learn more about that, see this previous article on Adyen ⬇️)
This company’s past performance is impressive!
Most impressive.
Some proof:
Zero long-term debt
Low Capex requirements
Owner-Operated with 51% ownership
Profitable and profitability set to increase significantly
A 5-year revenue CAGR of 25% (and no signs of slowing down)
Started thinking of its shareholders through dividends and buybacks
The most surprising, however, was the incredible transparency management showed in their reports. A breath of fresh air for sure (this time, I’m looking at you Inmode)
Wait, why do these kinds of opportunities exist?
You find these when you go small and hunt in areas where fewer people are looking.
As you know, we want to populate 50% of our portfolio with these kinds of fast growers.
We bought the first one a couple of weeks ago.
And this is number 2. Yes, I did take a position. (putting my money where my mouth is).
Let’s dive in ⬇️