50% sustainable revenue growth for ~12x 2025 earnings

A growth story that was hidden by a bad cap structure. Until recently.

As value investors, we try to buy a company for less than we think it is worth. This does not necessarily mean that we only buy companies at less than 10x earnings. Sometimes we find companies that are worth 20 or 30x earnings. The trick is to know when that is the case. I believe this company is worth 20-30 times earnings, fortunately we do not have to pay that today. Here are the highlights:

• Revenue is growing at over 50%, with every additional dollar earned contributing 50 cents to incremental margin.

• By 2025, projected gross margins of 80% and EBIT margins exceeding 30%.

• The company benefits from recurring revenues combined with clear barriers to entry.

All in All, this is probably the highest quality business that I know in a sub $500 million market cap. All that was masked by a horrible cap structure and high debt until October this year. Now the company has a clean cap structure, and will most likely be debt free by the end of 2025.

The current market cap is around $190 million. Average trading volume is around $200k, making it quite liquid.

Name me one microcap that can grow profitable by 50% without dilution, here is one..