Matthew Dow
Small-cap, value, long only, growth at reasonable price

SMTP: A Cash Generating Company With Strong Growth Ahead

SMTP Inc. (SMTP) is a tiny micro cap tech stock, having a market-cap of only $31m and annual revenues of about $5.75m in the most recent fiscal year.

Despite its small size, SMTP is not your typical high risk startup internet company. Many of these companies have big promises and no profits in sight. In fact, SMTP is not only profitable, but it is a cash generating machine. EBITDA margins are over 35%, and with a SaaS business model that requires minimal capital expenditures, the company has lofty free cash flow - north of 25% of revenues. With minimal capital deployed, this company has been a fantastic business for much of the past decade, generating ROE and ROIC...

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