Mid-Cap Marvel: High Margins and Exceptional ROIC

In our second report of the month, we introduce you to a mid-cap software company that’s growing at double-digit rates, has a high percentage of recurring revenues, and operates with an asset-light model in a growing industry. It is founder-led with low analyst coverage and has very high returns on capital.

Source: Koyfin (affiliate link with a 20% discount for StockOpine readers)

In Part 1 of this article, we explore what the company does, where it operates, its solutions, future growth drivers, and its journey to becoming what it is today. Part 2, which will be released next Wednesday, will delve into its financials and outlook, evaluate the management team, analyze industry dynamics, and assess its competitive moat before concluding with our valuation estimate.

We chose to split this article into two parts because the Business Overview section turned out to be longer than anticipated, and we believe this undercovered company deserves a more detailed discussion. At the same time we want to ensure you’re not overwhelmed with information in a single report.

As a side note, since its IPO, the company has achieved an impressive +17% CAGR in shareholder returns, so let’s dive in.