A Hidden Compounder in Germany’s Tech Heartland? Double-Digit FCF Yield, Two Moats, and Zero Hype?
In the quiet corners of the German stock market, away from the global tech darlings, lies a company that’s quietly attempting to do what every investor dreams of: compounding value. No hype, no buzzwords – just disciplined capital allocation, smart acquisitions, and high-margin business models that generate real cash.
Meet Brockhaus Technologies.
At first glance, the company might not catch your eye. It’s a small-cap holding company with just two main assets. But dig a little deeper, and what emerges might in a few years turn into a textbook case study in how to build long-term shareholder value by blending private equity discipline with public market access.
In this post, I’ll look under the hood of Brockhaus Technologies and explore:
Why Bikeleasing could be Germany’s next hidden fintech champion,
How IHSE built a niche moat in secure infrastructure,
What makes Brockhaus's capital allocation refreshingly old-school (in the best way),
And why a forward double-digit free cash flow yield could be just the beginning.
Whether you're a quality-growth investor, a serial acquirer aficionado, or simply someone who enjoys finding unloved gems before they get crowded—this is a company that deserves your attention.
Disclaimer: I used to own Brockhaus Technologies shares when I wrote the blog, but sold my position shortly after at a loss as the facts changed (see point 13 in the risk section). Hence, my analysis is likely biased. Also, the analysis presented in this blog may be flawed and/or critical information may have been overlooked. The content provided should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. I may own some of the securities discussed. The stocks, funds, and assets discussed are examples only and may not be appropriate for your individual circumstances. It is the responsibility of the reader to do their own due diligence before investing in any index fund, ETF, asset, or stock mentioned or before making any sell decisions. Also double-check if the comments made are accurate. You should always consult with a financial advisor before purchasing a specific stock and making decisions regarding your portfolio.”