When it comes to profitable companies, markets look ahead. You are looking at WDS from current financial metrics, but market's ambivalence suggest it looks forward. Market is not silly seeing a PE of 5x and not pushing the stock higher.
All you said about micro-caps are valid. Sure there are ample risks, and one must spare the time to monitor them closely but you don't get a bagger with blue chip stocks.
CHN suffered a 50% drop during Covid crash from 31c to 16c, one year later it was $5.46 before hitting a peak above $10. Sure, just a handful will get to be the next CHN. Never mind 60x bagger, just one bagger is good enough.
A 20% exposure to a stock that can get to be one bagger delivers 23.2% blended annual return for a 80/20 cash/stock portfolio, and if we get a 50% market crash, blended return is just -6.8% protected on the downside.