From $5M to $50M profit: The Best Growth Story You Haven’t Heard Of! (And It’s Still Cheap)

Intro:

This stock grew profits 10x in three years. It dominates multiple niche markets, trades on <6x EBIT, and has $65m in net cash. I explain why I think it could triple from here assuming lower growth, or if growth continues at pace then upside is much higher.

This is a high-quality, under-the-radar (no English write-ups at all!) business with consistent 10-year revenue growth and a 3-year CAGR of 45%. ~$350m market cap.

It boasts strong profitability (31% operating margins, 30% ROIC) and trades at a low EV/EBIT multiple (<6x). The company is a market leader in several niche, high-growth sectors (niches exposed to: semiconductor testing, data centres, 5G, medical devices), with over 50% market share in some of its core offering.

It has a clean balance sheet (18% net cash), a 3.2%+ dividend yield, and capital available for R&D and strategic acquisitions. Management is highly aligned—particularly the CEO, who owns 4.2% and led a successful business integration.

Key stats:

EV/EBIT < 6x

Net cash USD65m

Market cap USD350m

$2m daily average volume

R&D spend c. 8% of revenue

Operating margins 31%

Gross margins 58%

ROIC 30%

Last 3 years Rev CAGR 45%, EBITDA CAGR 59%