Author reviews Topicus' latest earnings, noting improving revenue, low but positive organic growth, 20x FCF valuation, and a large contracted revenue backlog, while flagging EU low-margin services and Asseco reporting complexity as concerns.
TOI.V — LONG Author argues Topicus trades at 20x FCF while growing cash flow and revenue ~20%, making the ~$90 price look low given a proven acquisition methodology. A key catalyst is management's plan to recognize close to 60% of €1.3B in contracted but unrecognized revenue this year, meaning roughly half of next year's revenue is already guaranteed, providing a safety margin. Main stated risks are that a quarter of revenues rely on low-margin EU services and that the Asseco acquisition makes the financial statements hard to fully understand due to late reporting.
Valuation: They trade at 20x FCF. For a company that grows 20% cash flow and 20% revenue, 90$ looks rather low.
This Reddit post, published February 26, 2026, features u/Ancient_Bobcat_9150 discussing TOI.V. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/Ancient_Bobcat_9150 · Tickers: TOI.V