On the Hunt for Multibaggers, Episode 1

Discover 4 potential multibaggers in the first episode

Stocks that give returns that are several times their costs are called multibaggers. In this new series, "On the Hunt for Multibaggers," we will identify and track potential multibagger stocks.

Our selection process will include:

• Strong Growth: Companies exhibiting robust growth in expanding markets.

• Proven Profitability: Profitable companies with established, successful business models.

• Valuation Metrics: Reasonable P/E ratios and PEG ratios around or below 1.

• Healthy Profit Margins: Companies with decent net profit margins.

• High ROIC: Great Return on Invested Capital, a crucial metric for sustained growth.

• Minimal Dilution: Companies with no significant share dilution.

In each episode, we will introduce new potential multibaggers and revisit previous picks to assess to see if the selection process was effective and what were their return.

Please note, this is for informational purposes only and is not intended as investment advice.

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Evolution

Evolution AB has established itself as a leading provider of Live Casino solutions. Known for its high-quality streaming and professional dealers, Evolution quickly gained a strong foothold in the European market. Through continuous innovation and strategic acquisitions, including NetEnt and Big Time Gaming, the company expanded its product portfolio to include a wide range of live dealer games, slots, and other RNG (Random Number Generator) games. This diversification, coupled with a focus on technological advancements and superior player experience, has enabled Evolution to grow its global presence and become a dominant player in the online gaming industry.

Country: Sweden

Sector: Consumer discretionary

Metrics

• 2024 growth 17.7% / 2025 growth 16.4%

• PE 18.5x / PEG 1.05

• Net profit margin 54.0%

• ROIC 28.0%

• Buyback 1.2% / year

• Leverage -0.6x EBITDA (net cash position)

Calculated future total shareholder returns 17.6% / year

Calculated 10y performance 407% (x5)

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