- High gross margins reflect pricing power
- Patented technology creates barrier to entry
- End markets still growing despite increase in digital payment platforms
With a cash-adjusted forward PE ratio of 10 and a 7.2 per cent dividend yield, this small technology company is below the radar of many investors at the moment. However, the company is in an earnings upgrade cycle, having forced analysts to push through three upgrades already this year, and that follows a decent outperformance in 2021. A thumping 8.5 per cent free cash flow yield and an asset-light business model with eye-watering cash conversion rates support the case for further growth in the dividend pay-out.
Capitalising on the big trend in security and authentication for bank notes
