One of the most time-consuming parts of my investment process is generating initial ideas. It requires going through hundreds of stocks just to find a few worthy candidates. First, I conduct a broad quantitative screening. Then, I narrow it down to a preliminary list, and only then does the deep analysis begin.
I have spent hours running these screeners to find a candidate for my next analysis. With this article, you can skip the hard work and find your next potential investment in just 10 minutes.
In this section, I will present 3 companies that passed the initial screening and may be worth further analysis. Additionally, as a bonus, I will share the full table below featuring the complete list of 24 companies that made the cut.
Disclaimer: This is a preliminary description for informational purposes, not a full analysis or investment recommendation. Do your own due diligence.
Source: Financial metrics are sourced from TIKR.
1. Fountaine Pajot (ALFPA)
Sector: Consumer Discretionary (Leisure Products / Boats)
Price: €109.8 | Market Cap: €180.47M | Enterprise Value: €86.87M
Overview: Fountaine Pajot is a world leader in the design and manufacture of luxury catamarans. Based in France, the company operates two brands: Fountaine Pajot (sailing and power catamarans) and Dufour Yachts (monohull sailboats). Unlike mass-market boat builders, they occupy a premium niche targeting high-net-worth individuals and global charter companies. They are currently the second-largest catamaran builder in the world.
Financials:
Growth: Following a sales drop in 2020 due to the pandemic, revenue has compounded at a 19% CAGR over the last 4 years.
Profitability: They maintain a very high Return on Invested Capital, averaging 30% over the last 3 years.
Balance Sheet: The company’s main appeal is its net cash position of nearly €100M—more than half of its entire market capitalization.
Valuation:
EV/EBIT: 1.9x
P/E (LTM): 3.0x
P/E (NTM): 7.4x
The valuation is extremely attractive, especially when factoring in the massive cash pile.
Opportunity or Value Trap?
The boating industry is notoriously cyclical, and it is almost certain that sales will decline in 2025 and 2026. This explains why the NTM P/E is higher than the trailing twelve months.
However, even factoring in a profit decline, the valuation remains ridiculous due to the net cash position—cash is cash.
The reason for this undervaluation may be low analyst coverage (followed by only one analyst). The key question to investigate is capital allocation: what will management do with the cash? Despite the massive liquidity, the dividend payout last year was only 12% of profits.
2. Evolution AB (EVO)
Sector: Consumer Discretionary (Casinos & Gaming / B2B Tech)
Price: 637.4 SEK | Market Cap: SEK 127,162M | Enterprise Value: SEK 120,871M
Overview: Evolution is the undisputed world leader in B2B “Live Casino” services. Important distinction: they are not a casino; they are the infrastructure provider (cameras, dealers, software) powering the betting giants like DraftKings, 888, and BetMGM. They possess a massive moat thanks to their global network of studios. This is, by far, the highest quality business in the entire screener.
Financials:
Growth: The growth is massive, boasting a 43% CAGR over the last 5 years.
Margins: In 2024, they printed an operating margin of 64.1%, which proves the immense competitive advantage.
Profitability: Return on Invested Capital is elite, averaging 29% over the last 3 years.
Balance Sheet: Strong balance sheet currently operating with a small Net Cash position.
Valuation:
EV/EBIT: 7.8x
P/E (LTM): 10.3x
P/E (NTM): 10.4x
Historically, this stock has traded at multiples of 25-30x due to its quality.
Opportunity or Value Trap?
The recent drop is primarily driven by regulatory risk because a portion of the company’s revenue comes from “unregulated” or grey markets.
This is practically a monopoly with great capital allocation and strong management. The question is if the market is overreacting to these risks. This is certainly a very interesting company. It may be worth conducting a more in-depth analysis of the risks and their potential effects on the company.
3. 4Mass S.A. (4MS)
Sector: Consumer Staples (Personal Products / Cosmetics)
Price: 4.14 PLN | Market Cap: PLN 99.41M | Enterprise Value: PLN 86.13M
Overview: 4Mass is a Polish micro-cap operating in the beauty sector. They are manufacturers and distributors of cosmetics, specializing primarily in the nail segment (manicure/pedicure) and makeup. They run a very interesting dual business model: they own recognized brands in Central Europe like Claresa and Palu, while also leveraging their industrial capacity to manufacture private label products for third parties.
Financials:
Growth: The trajectory is explosive. Since its IPO in 2019, the company has multiplied its sales nearly 10x.
Profitability: Returns on capital are great, with a 3-year average ROIC of 33%.
Balance Sheet: Rock-solid financial health, operating with a Net Cash position.
Valuation:
EV/EBIT: 6.4x
P/E (LTM): 9.6x
P/E (NTM): 4.6x With these fundamentals, the price is ridiculous. There isn’t much else to say—it is dirt cheap.
Why is it so cheap? (The Catch)
Size: It is a tiny Micro-Cap, making it invisible to institutional money.
Margin Uncertainty: After a massive margin expansion in 2022 and 2023, margins have started to compress. The company lacks a long enough track record to determine what its “normalized” margins actually are.
Information Black Hole: Getting information is difficult, and management does not seem overly concerned with communicating transparency to the market.
Conclusion: Fundamentally, the stock is a gift at these levels. However, the real challenge is accurately normalizing future margins with such a short history. On the surface, it looks like a massive opportunity, but it is reserved for the investor willing to do the work and deep research that others won’t.
Bonus: The Full Screener List
If you enjoyed this breakdown and want to see the complete list of ideas, here is the full table containing all 24 companies that passed the initial filter.
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think 4mass founders were involved in some previous fraudulent cmpanies
Have you checked ALCAT.PA (Catana Group). It could be a good alternative to Fountaine Pajot, and I'm curious of your thoughts?