Literal Cash Machines (Another Cheap UK Small Cap) 💸
Share buybacks, large growing dividend, 25% operating margins, 34% ROCE, P/E 8.
Dear Readers,
Welcome to another edition of ROE The Boat.
Every month we publish exclusive research on profitable growing small/microcaps trading at cheap prices.
To read these reports, and to access the full archive, consider becoming a paid subscriber. An annual subscription is just $100.
For this issue I want to share with you another high quality UK small cap whose share price has fallen due what I believe is an unfortunate series of one-off blips. If this proves correct the share price will see a strong recovery.
This business has the following characteristics…
25% operating margins.
34% returns on capital employed.
High insider ownership.
Operational leverage as they roll out more machines.
A strong moat.
Pricing power.
Healthy balance sheet.
Buying back shares.
A chunky growing dividend.
Trading on P/E of just 8!
Let’s dive in…
Please note: this article should act as an introduction to the company mentioned and is not a complete deep dive. Make sure you do your own research before investing in any company mentioned in this newsletter.