My favorite stock idea since TRT.
Downside limited backed by a robust balance sheet and underappreciated recurring revenues. While the upside is demonstrated by continuous cash conversion and new product sales with a new leadership team.
First a disclaimer:
This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their individual financial circumstances before making investment decisions. Author may hold a position in the underlying and may buy or sell at anytime without any notice.
Sometimes I don’t even care what a company does. I will include a description of the business later, but I think the investment thesis has to start with the financials.
Q2 2026
Revenue: $4.245M (+81.5% YoY)
Gross Profit: $2.961M
Gross Margin: 69.8%
Operating Income: $1.194M
Operating Margin: 28.1%
Net Income: $1.005M (+594% YoY)
Net Margin: 23.7%
Basic EPS: $0.22
Diluted EPS: $0.21
H1 2026
Revenue: $8.159M (+38.9% YoY)
Gross Profit: $5.622M
Gross Margin: 68.9%
Operating Income: $2.354M
Operating Margin: 28.9%
Net Income: $1.976M (+113.2% YoY)
Basic EPS: $0.43
Diluted EPS: $0.42
Balance Sheet — June 30, 2026
Cash & equivalents: $8.153M
Short-term investments: $0
Accounts receivable, current: $3.046M
Long-term accounts receivable: $1.713M
Inventory: $0.882M
Prepaids: $1.899M
Total current assets: $14.037M
Total assets: $16.322M
Total liabilities: $2.115M
Debt: $0
All of this at a mere $22 million market cap.
Enterprise Value: ~$14.14M
TTM P/E ~8.3x
EV/EBITDA~7.0–7.5x
EV/Revenue~1.1x
Price/Sales~1.7x
