20 undervalued small cap quality stocks（part 2）

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 other 10 companies: Talenom Oyj (TNOM.HE) $Qualys(QLYS)$ Admicom Oyj (ADMCM.HE)$HMS Networks AB(HMNKF)$ $CERILLION(CER.UK)$ $PubMatic, Inc.(PUBM)$$Robertet SA(RBTEF)$ChemoMetec A/S (CHEMM.CO)$Wingstop(WING)$$TOPICUS COM INC.(TOITF)$  

Company 11: Talenom

Company profile: Talenom operates as an accounting company offering accounting, bookkeeping, taxation, and other financial management services.

• Profit Margin: 13.0%

• ROIC: 11.9%

• Earnings yield: 3.1%

• Expected EPS Growth next 3 years: 17.3%

• CAGR since IPO: 38.1% (2015)

Company 12: Qualys$Qualys(QLYS)$

Company profile: Qualys, is a cybersecurity company offering information technology security risk and compliance management solutions.

• Profit Margin: 17.3%

• ROIC: 23.0%

• Earnings yield: 3.1%

• Expected EPS Growth next 3 years: 3.1%

• CAGR since IPO: 21.2% (2012)

Company 13: Admicom

Company profile: Admicom develops enterprise software. Admicom offers enterprise resource planning and management systems.

• Profit Margin: 32.4%

• ROIC: 30.0%

• Earnings yield: 4.4%

• Expected EPS Growth next 3 years: 20.7%

• CAGR since IPO: 46.5% (2018)

Company 14: HMS Networks$HMS Networks AB(HMNKF)$

Company profile: HMS Networks AB develops, produces, and markets communication technology for industrial automation. The Company sells worldwide.

• Profit Margin: 18.0%

• ROIC: 24.2%

• Earnings yield: 2.9%

• Expected EPS Growth next 3 years: 12.8%

• CAGR since IPO: 23.7% (2007)

Company 15: Cerillion$CERILLION(CER.UK)$

Company profile: Cerillion designs and develops customer management systems offering network asset management, billing operations, and so on.

• Profit Margin: 24.7%

• ROIC: 36.7%

• Earnings yield: 4.4%

• Expected EPS Growth next 3 years: 12.8%

• CAGR since IPO: 52.4% (2016)

SubscribeCompany 16: Topicus$TOPICUS COM INC.(TOITF)$

Company profile: Topicus is a spin-off from Constellation Software. The company is a serial acquirer with a strong focus on Europe.

• Profit Margin: 2.2%

• ROIC: 19.5%

• Earnings yield: 4.6%

• Expected EPS Growth next 3 years: 14.4%

• CAGR since IPO: /

Company 17: Wingstop$Wingstop(WING)$

Company profile: Wingstop Inc. owns and operates restaurants, specializing in cooked-to-order, hand-sauced, and tossed chicken wings.

• Profit Margin: 15.1%

• ROIC: 23.9%

• Earnings yield: 0.4% (very expensive)

• Expected EPS Growth next 3 years: 20.3%

• CAGR since IPO: 37.2% (2015)

Company 18: Chemometec

Company profile: Chemometec manufactures instruments used to analyze particles like mammalian cells, sperm cells, yeast cells, and somatic cells in milk.

• Profit Margin: 37.7%

• ROIC: 44.1%

• Earnings yield: 1.1%

• Expected EPS Growth next 3 years: 33.4%

• CAGR since IPO: 25.9% (2006)

Company 19: Robertet$Robertet SA(RBTEF)$

Company profile: Robertet produces liquid flavorings, perfumes and associated natural aromatic ingredients.

• Profit Margin: 11.8%

• ROIC: 11.4%

• Earnings yield: 3.3%

• Expected EPS Growth next 3 years: 3.5%

• CAGR since IPO: 15.7% (1990)

Company 20: PubMatic$PubMatic, Inc.(PUBM)$

Company profile: PubMatic provides integrated inventory, data, and advertising revenue optimization platform for digital publishers.

• Profit Margin: 25.0%

• ROIC: 18.5%

• Earnings yield: 7.1%

• Expected EPS Growth next 3 years: 10.4%

• CAGR since IPO: /