On the Hunt for Multibaggers, Episode 3

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 three stocks will be exclusive to paid subscribers.

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

Here you can find the 2 first episodes:

• Episode 1

• Episode 2

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Shift4 Payments

Shift4 Payments is a leading provider of payment processing solutions, specializing in integrated payment technology for various industries, including hospitality, retail, and e-commerce. The company offers a comprehensive suite of services, including point-of-sale systems, online payment gateways, and mobile payment solutions. The company has been actively expanding its market presence through strategic acquisitions and partnerships, positioning itself as a significant player in the rapidly evolving payments landscape.

Country: USA

Sector: Financials / Technology

Metrics

• 2024 growth 38.6% / 2025 growth 29.9%

• PE 35.6x / PEG 0.92

• Net profit margin 6.0%

• ROIC 4.9%

• Dilution-5.4% / year

• Leverage 2.0x EBITDA (debt)

Calculated future total shareholder returns 20.5% / year

Calculated 10y performance 5.44% (x6.5)

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