It’s somewhat rare to find a business that gets stronger every quarter as its stock gets cheaper every quarter, but that’s exactly where we are with the company I write about in this write-up. The market is currently pricing this thing for a disaster that isn’t happening. With an EV-to-Operating-Profit multiple of now just 4.3x (depending on how you calculate EV), you’d think the wheels are coming off, yet the actual data shows a business that’s getting more profitable, more diversified (geographically & product-wise), and capturing more institutional ground than ever before. I believe this is a very high-quality business trading at a ridiculous price, and at this point, it’s a completely broken stock (now in an 81% drawdown), but not a broken business.
The market is treating this like a commodity-type legacy business in decline, but the numbers tell a different story (>40% revenue growth YoY).
Let me tell you more about this business.