Yanawut
Investment thesis
Even as shares of Bandwidth (BAND) are down nearly 20% so far this year, the business has continued to post strong financial results and is on track to exceed management's previously stated full-year
Bandwidth Q1: Resilient Growth Alongside Expanding Margins
Summary
- Organic growth of 10% is expected for this year, adjusted for last year's political revenue.
- Gross margins reached 59% in Q1, compared to 57% in the prior year period, and are expected to exceed 60% next year.
- The business is demonstrating strong operating leverage, with FCF estimated to be $60 million for this year.
- At 6.9 times FCF, the stock is too cheap and remains a Buy.
An individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years of analyzing countless companies, I have accumulated professional investment experience within my circle of competence. I have a Masters degree in Electrical Engineering and currently work as an automotive battery RnD engineer in Sweden. My write-ups on SA are a good way for me to layout my investment thesis on companies and receive feedback from the broader investing community. I enjoy diligently studying and researching small to mid cap companies which are often researched to a lesser extent by others. Through my analysis of numerous companies, I seek to identify asymmetric investment opportunities with the goal of achieving market beating returns.
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