Hidden gems #8; Software 60%+ upside

Jul 09, 2024

∙ Paid

Business type: Software & IT services, the business has been shifting towards recurring software revenues which currently accounts for about half of the business
Domicile: Europe
Market cap: < USD 50m
ADV: USD 0.05-0.10m
Valuation: 15/11x P/E, 3/4% DY, 0.10x FAV/P
Founder-owned & -operated: Yes, Founder/CEO owns 42%, other executives hold significant stakes as well
Growth profile: hsd %, supplemented with acquisitions
ROIC profile: 20%+
FCF profile: Sound FCF generation
Capital returns: 50% dividend payout policy mid-term
Broker availability: DG, IB (including residents: US, C, Europe), S

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