strong top line, with almost no cost increase, page-35

@hcosah

Hi Hcosah,

Yes, I agree.Enero looks at an interesting case.
Main thing I like about it : high free cash flow yield and growth. That's often a good way to identify a good stock, in particular if the free cash flow looks quite stable.

Obviously there are 2 parts in Enero's business :
- their traditional business, probably still quite cyclical, even if the volatiliy has probably been reduced thanks to the focus on stable sectors, like tech and healthcare,
- their 51 % holding in OB Media, which is both high growth and high margin.

One interesting element about valuation : the stock has doubled vs pre-covid period (from 2 $ at 31/1/20 to 4 $ at 31/12/21), reflecting the increase of EPS during that period (EPS went from 14.2 c in FY 19 to 26.4 c in FY 21).
So, the stock has not benefited from much re-rating, despite a clear acceleration of its earnings growth, while their earnings also look now more stable thanks to OB Media.