A few weeks ago we asked you on Twitter about the highest small cap quality stocks you know of. We got more than 200 answers (!) with more than 100 companies mentioned.
In this article, we will give an overview of the 20 best small cap high quality stocks.
To filter every response we received, we used a few Quality Criteria. Each company selected has:
- A healthy balance sheet
- High profitability
- Excellent capital allocation
- Attractive outlook (expected growth)
- Strong compounder (good stock market performance)
For clarity, I'll do this in two parts.Here are the top 10: $Scientific Digital Imaging plc(SDI.UK)$ $Mips Ab(MPZAF)$ $OTC Markets Group Inc.(OTCM)$ $TEAM17 GROUP(TM17.UK)$ $KELLY PARTNERS GROUP HLDGS LTD.(KPGHF)$ $Semler Scientific, Inc.(SMLR)$ $GAMES WORKSHOP(GAW.UK)$ $InMode Ltd.(INMD)$ $LIvechat Software SA(LCHTF)$ $XPEL, Inc.(XPEL)$
Company 1: SDI Group$Scientific Digital Imaging plc(SDI.UK)$
Company profile: SDI Group designs and manufactures scientific and technology products like control systems, optics and scientific imaging.
Profit Margin: 15.2%
ROIC: 18.4%
Earnings yield: 6.9%
Expected EPS Growth next 3 years: 16.1%
CAGR since IPO: 20.8% (2008)
Company 2: MIPS$Mips Ab(MPZAF)$
Company profile: MIPS manufactures and sells sports helmets. The Company offers a brain protection system for the helmet market.
Profit Margin: 41.9%
ROIC: 59.6%
Earnings yield: 2.6%
Expected EPS Growth next 3 years: 15.3%
CAGR since IPO: 45.1% (2017)
Company 3: OTC Markets $OTC Markets Group Inc.(OTCM)$
Company profile: OTC Markets regulates the trading systems and connects a diverse network of broker-dealers that provides liquidity and execution services.
Profit Margin: 29.6%
ROIC: 66.2%
Earnings yield: 5.6%
Expected EPS Growth next 3 years: 11.3%
CAGR since IPO: 27.9% (2009)
Company 4: Team17$TEAM17 GROUP(TM17.UK)$
Company profile: Team17 Group PLC develops game software. The Company publishes games for computer, console, mobile devices, and other digital platforms.
Profit Margin: 26.2%
ROIC: 12.3%
Earnings yield: 6.4%
Expected EPS Growth next 3 years: 18.3%
CAGR since IPO: 21.7% (2018)
Company 5: Kelly Partners Group$KELLY PARTNERS GROUP HLDGS LTD.(KPGHF)$
Company profile: Kelly Partners Group is a serial acquirer providing accounting and taxation services to private organizations.
Profit Margin: 8.6%
ROIC: 20.0%
Earnings yield: 4.8%
Expected EPS Growth next 3 years: 23.3%
CAGR since IPO: 42.4% (2017)
Subscribe
Company 6: Xpel$XPEL, Inc.(XPEL)$
Company profile: Xpel develops and manufactures automotive protection products offering window and protective film for the painted surfaces of automobiles.
Profit Margin: 12.2%
ROIC: 30.8%
Earnings yield: 2.4%
Expected EPS Growth next 3 years: 31.4%
CAGR since IPO: 25.3% (2006)
Company 7: Livechat$LIvechat Software SA(LCHTF)$
Company profile: LiveChat is a software company that provides communication tools, offering live chat rooms and unique greetings for business.
Profit Margin: 56.0%
ROIC: 86.7%
Earnings yield: 5.1%
Expected EPS Growth next 3 years: 12.8%
CAGR since IPO: 29.2% (2014)
Company 8: InMode$InMode Ltd.(INMD)$
Company profile: InMode develops medical devices, manufacturing platforms that harness novel radio-frequency based technology.
Profit Margin: 46.1%
ROIC: 48.0%
Earnings yield: 6.0%
Expected EPS Growth next 3 years: 14.6%
CAGR since IPO: 64.3% (2019)
Company 9: Games Workshop$GAMES WORKSHOP(GAW.UK)$
Company profile: Games Workshop Group manufactures and retails tabletop war-game systems and associated miniatures.
Profit Margin: 31.0%
ROIC: 51.2%
Earnings yield: 4.5%
Expected EPS Growth next 3 years: 13.2%
CAGR since IPO: 20.6% (1994)
Company 10: Semler Scientific$Semler Scientific, Inc.(SMLR)$
Company profile: Semler Scientific is a medical risk-assessment company developing markets diagnostic and testing products.
Profit Margin: 32.5%
ROIC: 28.7%
Earnings yield: 3.7%
Expected EPS Growth next 3 years: 15.5%
CAGR since IPO: 23.0% (2014)
Subscribe
Comments