Quality Compounder (trading at a rare discount)
Recurring Revenue, 60% Operating Margins, 60% ROCE, PE 12.
Dear Readers,
Welcome to another edition of ROE The Boat.
For this issue I want to share with you a high quality compounder whose share price has been hit by what I believe is just a temporary sentiment shock set back (that’s a mouthful).
This particular business is one of the highest quality companies listed on the London Stock Exchange and has the following characteristics…
Dominant player in their niche.
Pricing power.
+60% operating margins.
+60% returns on capital employed.
Buying back shares.
A growing dividend.
12 month forecast rolling P/E of 12.
A well known investment company has recently bought 5% of outstanding shares.
Have I piqued your interest?
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.