SteadyCompounder

Exploring small caps and the quiet ways they grow wealth. Learning through data, patience and some setbacks.

[SteadyCompounder @SteadyComp]

@HiddenGemsInves $TFW.L
$MACF.L
$NRO.PA
$3836.T
$LTHM.L

Most are boring businesses

[SteadyCompounder @SteadyComp]

@ApeIsLive @Stock_Bonvivant All the time, no exceptions

[SteadyCompounder @SteadyComp]

@long_equity Solid list, I would remove Text and add Cembre SpA

[SteadyCompounder @SteadyComp]

@DanShay96 The management solution part of the business. They are trying to push this to sofware, they have a good customer base to cross-sell into but this remains an aspiration

[SteadyCompounder @SteadyComp]

Avant Group ($3836.T) is a high quality compounder trading around 12x FCF with zero debt. At a current price of roughly 1,333 JPY, the stock has been penalized 25 percent in the last 5 years despite the business being stronger than ever.

[SteadyCompounder @SteadyComp]

@DanShay96 On ZEAL, mayority is reselling Azure/AWS, this part can benefit from AI as companies need solid datawharehouses to properly enable AI.
There is a portion that it is implementation and billable hours will likely decrease.

[SteadyCompounder @SteadyComp]

$NRO.PA Q1 update is clean.
Q1 Revenue €227.7M (+5.6% organic).
Crucially, operating margins recovered to 9%, confirming the thesis.
Severely mispriced IMO.
I own the stock. Not a recommendation

[SteadyCompounder @SteadyComp]

Trading around 12x Free Cash Flow, a business of this quality does not need complex math to see that it is undervalued. I beleive that the downside risk here is very low.
Looking forward to their Q3 earnings report on April 30!

I own the stock, not a recommendation.

[SteadyCompounder @SteadyComp]

The price is the best part. It trades at a massive discount compared to the broader enterprise software sector. The market seems to think Avant will hit a wall and stop growing, and while they are some risks, I believe this is overall a solid company.