Buying this European Compounder 💡

New position in the Quality Growth Portfolio (Potential multibagger)

Hi there partner!👋

Tomorrow we’re adding 1 new position to the Quality Growth portfolio✅

The business we’re purchasing is a high-quality European compounder.

The company has grown profitably for years with organic and inorganic growth sources:

The demand for their services is high and will be sustained for decades. ✅

Not only is it in demand from publically traded companies, but it is also in high demand from Government entities, the Military, and other state-owned institutions, making the sustained demand more likely.

The company is a potential multi-bagger ✅

The low debt levels (-15.9M Net debt), high EBIT/Interest expense of 28.2, and its cash conversion of 116.4% (FCF/Net Income) make it unlikely to go out of business any time soon with a solid cash position and high cash earnings compared to its obligations.

The business has compounded by 20.6% CAGR since its inception in 2018 despite trading sideways since 2021:

Let’s get into it 👇🏻