Hidden gems #10; U.S. SaaS microcap

This Hidden gem seems to be entering the discovery phase, with institutional investors coming in

The group of high-quality businesses led by great executives is a minority amongst microcaps. This particular SaaS/AI company saves its customers a ton of time, resulting in sticky customer relationships, ie very strong (c100%) net customer retention rates. It has now turned solidly profitable and is well on its way to start generating very strong free cash flow (FCF) and returns on invested capital (ROIC).

Assuming a 5% FCF-yield valuation, on management’s mid-term financial objectives, creates c40-85% upside investment return potential. That is before including any further optionality from value creative m&a, and/or a takeover premium.