Microcap beats Alphabet on ROE & Margins!
Trading at 9.5x earnings waiting to be found
Hi everyone,
The company I am covering today is relatively simple business, that has created a massive lasting competitive advantage (aka moat) by doing a couple of things differently compared to anyone else in their sector.
When I finally understood the totality of their business model, and how it compounded an inherent advantage, I realized their strong financial results were not a one-off or a case of luck.
While they are growing from a much smaller base, their Quality metrics are better than companies like Microsoft and Google, showing a gigantic moat:
After reading everything about this company in the past weeks, I realized their moat is not just one element, but a mix of process power, network effects, cornered resource, and switching costs.
The company we will cover today…
Has a moat built over generations
Has growth and ROE % higher than Alphabet & Microsoft (with 0 cyclicality)
Has net income compounding at 35% (organic growth + operating leverage)
Trades at 9.5x forward earnings, with 5% dividend yield
Is not impacted in any way by Iran war/peace
Trades ~350 kUSD/day