Small Cap Portfolio: 2 New Buys

2 stocks with an expected TSR around 20%

I initiated my small-cap portfolio back in February. Prior to the latest additions, it consisted of 9 positions. As a reminder, I want to reach approximately 15 positions. This balance ensures adequate diversification and risk management while also fostering concentrated opportunities for strong performance.

At the moment, the performance is quite satisfactory, yielding a return of over 7%. Interestingly enough, the initial stock I invested in was Altium. However, I ended up selling it just two weeks later due to a takeover bid.

For now the metrics of the before the 2 purchases (9 stocks - weighted average) and after (11 stocks)

• Past growth: 19.2% —> 22.0%

• Future expected growth (3y CAGR): 15.0% —> 15.7%

• Net profit margin: 23.8% —> 22.6%

• ROE: 36.2% —> 42.4%

• ROIC: 31.1% —> 29.7%

• Debt leverage: -1.3x EBITDA —> -0.9x EBITDA

• PE: 24.5x —> 23.9x

• FCF yield: 5.8% —> 5.45%

• PADI: 103€ —> 112€

• Dividend yield: 2.22% —> 1.94%

• Dividend growth: 12.1% —> 12.3%

• Dilution: -0.3%/year —> 0%/year

• Expected TSR: 14.9% —> 16.6%

And without further ado, let’s discover the 2 new stocks. One has an expected TSR around 25%, the other one around 19.5%.

Keep in mind, today marks the final opportunity to secure the current rate. Starting tomorrow, prices will rise as follows:

• The monthly subscription will escalate from $8.99 to $20.

• The annual subscription will rise from $89 to $167, offering over a 30% discount compared to the monthly subscription price.

All individuals who subscribed before this date will retain the old prices as long as the subscription doesn’t stop.