Another microcap recovery worth watching : Scidev (water treatment manufacturer).
The company published today a strong Q3 regarding revenues (+ 38 % yoy), underlying EBITDA margin (12.4 % vs 8.8 % in Q2 24 and 3.2 % in Q1 24) and cash flow from operation (3.8 m$), in line with EBITDA (3.6 m$). If we annualise this quarterly EBITDA, the company has a free cash flow yield of 24 % (Scidev has a net cash position of 9.1 m$). According to their comment, Q3 cash flow may have benefited from some working capital effect.
Scidev has been a frustrating company, as it took them a long time to turn profitable. Their new CEO seems to be doing a good job regarding growth and profitability.
One difficulty with their business may be to assess what part of their business is recurring.
