Stock Pitch: High-Quality SaaS business with Multibagger Potential and a Margin of Safety

Today, I have a concise pitch for you regarding a company that has the potential to become 4x or 5x from the current valuation.

• The company is now trading at 1.75x ARR (Annual Recurring Revenues) and ~0.9x Aug ‘26E ARR (management’s mid-term forecast)

• On an EV (Enterprise Value) level, this would be <1.1x current ARR and 0.54x Aug ‘26E ARR

• Almost 90% of revenues are recurring, gross margins are ~80%, and churn is low at about 5.5% annualized

• In FY22 and FY23, ARR grew at a mid-teens rate (15-16%)

• 37% of the market cap in net cash, No Long-Term Debt, and 74% of Total Liabilities are deferred revenues

I do not own shares yet, although I’ll likely do so soon. The conclusion will discuss the two things that need to happen before I establish a position.

Let’s take a look!