GARP investing is all about buying quality secular growth companies at reasonable prices. Hence investors should be able to own them for long periods, and (hopefully) enjoy years of healthy returns thanks to strong EPS and multiple expansion. Enter BuildTech software developer Elecosoft, who said this morning that trading is “in line expectations” - with H1 revenues jumping 22% in constant currency terms (20% reported) to £12.7m (ED est), EBIT margins similar to H1’18 (ie 16.6%) and net debt closing June at a modest £0.6m (or 0.1x EBITDA) vs £2.1m in Dec’18.
07 Aug 2019
The perfect GARP stock
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The perfect GARP stock
Eleco Plc (ELCO:LON) | 96.0 0 0.0% | Mkt Cap: 79.9m
- Published:
07 Aug 2019 -
Author:
Paul Hill -
Pages:
7
GARP investing is all about buying quality secular growth companies at reasonable prices. Hence investors should be able to own them for long periods, and (hopefully) enjoy years of healthy returns thanks to strong EPS and multiple expansion. Enter BuildTech software developer Elecosoft, who said this morning that trading is “in line expectations” - with H1 revenues jumping 22% in constant currency terms (20% reported) to £12.7m (ED est), EBIT margins similar to H1’18 (ie 16.6%) and net debt closing June at a modest £0.6m (or 0.1x EBITDA) vs £2.1m in Dec’18.