On the Hunt for Multibaggers, Episode 4
Adding 4 new stocks to the list of potential multibaggers
Stocks that give returns that are several times their costs are called multibaggers. In this 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. The investment horizon is 10 years. Free subscribers will discover one stock per episode, while the remaining 3 stocks will be exclusive to paid subscribers.
Here you can find the first 3 episodes
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Paxman
Paxman is a Swedish-based medical technology company specializing in scalp cooling systems designed to help cancer patients reduce hair loss during chemotherapy. Their innovative "cold cap" technology works by lowering the temperature of the scalp, which minimizes the amount of chemotherapy drugs reaching hair follicles. Paxman has become a global leader in this niche, partnering with hospitals and oncology centers worldwide, and continues to invest in R&D to improve patient comfort and treatment outcomes. The recently announced acquisition of Dignitana is a great acquisition for the company with immediate shareholder value creation.
If you are interested you can check out my article about the company
Country: Sweden
Sector: Healthcare
Metrics
2025 growth 23.3% / 2026 growth 43.9% (without the acquisition)
PE 20.8x
Net profit margin 22.1%
ROIC 25.6%
Dilution - (10% for the acquisition otherwise the company usually doesn’t dilute or buyback its shares)
Net cash position 35M SEK
Calculated future total shareholder returns 22.2% / year
Calculated 10y performance 640% (x7.5)
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