A High-Quality Compounder Growing 43% With A 20% Cash Margin and 21% Operating Margin

Revenue up 43%. Earnings per share up 61%. It hit its 2027 target two years early. And most of the market still files it under "contract manufacturer."

Some companies get mispriced because the numbers are ugly.

This one gets mispriced because the label is.

If you pull it up on a screener, you land on a category that makes most quality investors close the tab immediately. Low margin. Capital heavy. Customer concentration. The kind of business that gets a single-digit multiple and deserves it.

Except the numbers do not behave like that at all.

Here is what the last twelve months actually look like at this company:

• Full-year revenue grew 43%

• Operating profit margin went up while it grew, from 20% to 22%

• Earnings per share grew 61%

• It paid out a dividend worth 79% of net profit

• It did all of that with net debt at 0.8x EBITDA

Growing 43% is not hard if you are willing to buy the growth or discount your way to it. Growing 43% while expanding margins, generating enough cash to hand most of your profit back to shareholders, and keeping the balance sheet almost clean is a completely different animal.

That combination is rare. In European small cap land, it is close to extinct.

And there is a reason nobody talks about it.

The whole thing sits on three engines, and almost nobody understands the third one

The business runs three segments. Most investors look at the first one, ignore the second, and actively dislike the third.

That third segment just grew revenue 111% year over year and expanded its operating margin from 14% to 20% at the same time.

The second segment is being pushed by a European regulation that will eventually force millions of commercial trucks to replace a device. Not “might.” Force.

And the first segment, the one everybody actually likes, just posted a 12% revenue decline last quarter. I am going to argue that decline is one of the more bullish things in the report.

There is also a contract sitting on the shelf that is not in guidance at all, an acquisition in exclusive negotiations right now, and a brand-new four-year strategic plan that management is presenting this month.

That is a lot of loaded guns for a company nobody covers.

Everything below the line is for the Fluent Few. The name, the ticker, the segment math, the margin bridge, the risks, and the setup going into the 2030 plan.

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