2 small-caps I wanted to share and have your opinion on

Hello all, I wanted to share with you some small-cap stocks I grew interested in recently. Would be happy to have your thoughts on them - or maybe you can share your own. Not very thorough analysis sorry - i kept it short and concise at the moment because my research is limited to reading their last reports annual and financial reports. **1. Sectra AB:** This would be my top pick at the moment - Sectra makes software that helps hospitals store, analyze, and share medical images like X-rays, CT scans, MRIs, and pathology slides. Doctors use it every day to diagnose patients and make treatment decisions. Once a hospital installs Sectra’s system, it becomes deeply embedded in workflows and is very hard to replace. They have very loyal customers. Their systems are mission-critical, regulated, and deeply integrated, creating very high switching costs. They do compete against giants like GE, Philips or Siemens. However, Sectra is more focused on software quality, usability, and long-term reliability rather than hardware bundling. **Management** \--> Management has a lot of skin in the game, and what is also interesting, is that Sectra is technician led who have a deep connection and understanding of the field. But this can go both ways - top engineers do not necessarily make the best management (see Google). **Some metrics** \--> Strong backlog of 2.5x book-to-bill, cloud recurring revenue over 25%, no debt, gross margin constantly around 40%, customer retention 99.5% **Valuation**: When looking at PE, it looks steep. However, i'd argue that the stock is slightly undervalued, considering the growth perspectives and forward earning power. I did not find very worrying news why it dropped so hard since last summer. **2. Jensens-Group**: This one might sound boring (and kind of is). They are specialised in heavy-duty laundry. But what is interesting, is that they are leading the way in automation. They install heavy-duty and complex machinery to mission-critical structures like hospitals, hospitality chains, textile rental providers and so on. **Financials**: They have rather consistent mid-teen growth, consistent high ROCE around 20%, increasing FCF and increasing profit margins, close to 10% organic growth, EBIT and EBITDA grow faster than revenue. **Valuation**: PE 11.5, Forward PE 9.5 (below industry average), reasonable 14 P/FCF, EPS 5.5. To me, the stock looks fairly valued (although i'd rather have it around 55e) I am also looking at **Reply** \- IT tailored consulting and integration, with platform solutions. However, competition is super strong and i still need to dig deeper to find any strong redeeming and differentiating factor. Others on my lists are MIPS and Pluxee but I have written about them before :-)