Growing Software Company with a 3 year 19% CAGR growth at 10x EV/FCF
Research report on a company from my A-Z list
Hi,
As you might recall, I made this tweet about IPOs. I believe that ex US IPOs can offer interesting opportunities as there is not much of the initial liquidity to bid up the shares. And these companies usually go to stock market when they found something or want to reward employees/shareholders. I usually look for IPOs where the secondary sale is very low % of total shares. These IPOs dont make a lots of sense. But still, the company is suddenly public.
And public company creates opportunity to dive into and eventually invest in. Today I will tell you about such company. A company that trades at 10x EV/FCF, while grew 80% in the last 3 years and enjoying 85% gross margins. What is more, the company has been growing its revenue 19% and EBIT 31% CAGR duing the last three years.
I found this one going second round A-Z and I believe this looks like asymetric opportunity, so lets have a look.
Summary
No tweets, no articles or coverage. I am the first one to write this up
Orphan stock - HQ in Singapore, 4 countries operations, development in India and support in Malaysia. First company from this industry on this exchange.
The company is market-leader in this industry and has biggest market share
Many comparable companies trade at 20-30x FCF in this industry
Management owns over 70% of shares and intends to pay out 50% of profit as dividends
Undermonezited products that could grow a lot in the future
Company has 25% of market cap in cash
Given its SaaS nature, FCF is higher than reported net income
Regulatory landscape creates opportunities to grow while also being barrier to entry