Cliff Note #121- Recurring model nearing an inflection point needed for valuation expansion
Multibagger Themes: Recurring Revenue Inflecting - Niche Markets - Increasing Wallet Share - Mission Critical Software
We are adding a new stock to our index. It has been growing its revenue, posting a recovery off of COVID lows.
Part of the the upward revision in valuation multiples that we think will occur over time will come from the company’s recurring revenue growing to become a bigger part of overall revenue.
It appears that the company is nearing this inflection point as it more aggressively penetrates its core markets and layers on additional solutions to its software platform.
At an P/E of around 10x and a healthy insider ownership we see the stock as a perfect quality selection to add to our Microcap Quality [MultiBagger] Index…
Multibagger Themes: Recurring Revenue Inflecting- Niche Markets - Increasing Wallet Share - Mission Critical Software
Please note, we first wrote about this company in a Sunday Journal Research Pipeline post published last month. You can read that here.