This Portuguese Small cap is up 25% since entering.

Among the cheapest in the sector

Hi all, hope you are enjoying the summer.

I bought this company early this year and shared to subscribers that it was very cheap. After a small price run up, I will investigate how it is valued. It’s easy to buy something that is cheap but it is difficult to keep something once it goes up while a full analysis was not done. Therefore I will conduct the analysis below:

The company operates in a defensive sector and is building a good product offering internally and by acquisitions. An expansion beyond Spain and Portugal offers some runway, but the current price alone offers some good shareholder and dividend yield. While it has not worked in the past two years, buying higher shareholder yields than the market yield is historically proven to outperform, so I keep repeating the process like an idiot.

• This is a very small cap.

• P/E is 10 but P/FCF shows a bigger undervaluation

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