This is the second part of an analysis (here you will find the first part) where we have studied 6 high potential stocks that have suffered significant drops in the stock price in recent months.

In a nutshell, the purpose of this article is to inform readers about some companies with key business data expected to grow in the coming years but which are currently at a discounted price of about 30-40% compared to a few months ago.

The decline in the share price in recent months is good news because it allows you to buy companies at a lower price, but at the same time it represents a risk, especially if you have a short-term view, because the decline may not be over.

Each company covered by this analysis is represented by a BullDude’s Card, which is a single image that contains all the key data you need to know, from more general information to key business data from recent years and expectations of future growth.

In particular, the focus is on: the ability to increase the size of the business (by increasing Revenue) and ability to produce a net profit at the end of the year after all costs incurred (positive and growing Net Income).

Furthermore, the focus is on the ability of companies to improve business efficiency, increasing the main business margins, especially what concerns the operational part that is not affected by financial and fiscal costs (positive and growing EBITDA margin).

learn more about metrics

Industry: Industry in which the company operates.
Market Cap: Market capitalization of the company in millions of dollars.
1 Year: Performance of the company’s stock price in the last 12 months.
YTD: Performance of the company’s stock price YTD (Year-To-Date).

Revenue and Net Income: Revenue are the sum of the products and services sold and the Net Income measures the final profit of the company after subtracting all types of costs (operational, financial, fiscal and extraordinary) from revenue. The metrics are calculated TTM (Trailing 12-Months), therefore as the sum of the last 4 quarters in order to have the data updated to the last quarter released by the company.

EBITDA Margin and Net Margin: Business margins are important to understand if the company is able to profit from its revenue (high business margin), or the costs are too high and little profit remains (low business margin). There is a case in which the costs exceed the revenue, in which case the company reports a loss and the business margin is negative. The EBITDA Margin refers only to the operating activity, therefore it is more important than the Net Margin because it is not influenced by other types of costs such as financial and fiscal ones. If margins improve, it means that the company is operating more efficiently, because with the same revenue it is able to make more operating profits (EBITDA) or net profits (Net Income).

3 Years Growth: Revenue/Net Income/EBITDA margin growth rate over the past 3 years. This data is useful to understand if the company has increased the size of the business, increased profits and improved business margins in the last 3 years.

Next Year Growth: Growth / decrease rate estimated by analysts on Revenue and Net Income. The estimate is based on a comparison between the next fiscal year data estimated by analysts and the 12-month trailing data reported by the company up to now. For example, if a company had a revenue of 1 million in the last 12 months (Fiscal Year 2021) and analysts expect the company to end the next year (Fiscal Year 2022) with revenue of 1.5 million, then the estimated data reported here will be a growth of 50% (from 1 to 1.5 million). Estimates are not certain data and are subject to variation.

*Data in Millions of USD