Growth at a Bargain Price

How a management change turned a sleepy microcap into a growing cash machine.

Key metrics:

• 8.3x earnings (but really more like 5.4x)

• Outstanding return on capital

• Strong growth under new management

• Massive ongoing buybacks

For about 15 years, this business went nowhere. It had steady revenues, was barely breaking even, and had little to get excited about.

Then, in 2022, something changed.

A key management transition lit a fire under the company, unlocking meaningful growth, boosting profitability, and putting it on a far more attractive trajectory.

Since then, revenue is up roughly 250%. Margins and earnings have followed, and there’s every reason to believe the momentum will continue.

Yet, because it’s a small microcap, the market hasn’t caught on, and the share price has barely moved.

Management knows it’s undervalued. So they’re making use of the strong cash position they’ve built up, putting that money to work through buybacks.

It’s a textbook case of market inefficiency, and a great reminder of how the small-cap space can hide incredible opportunities, if you’re able to find them.

Let’s dive in.