Report by Kailash Capital Research
Kailash’s ranking tools are surfacing high-quality, high-growth stocks with long “economic runways” trading like value stocks. ARIS trades at 7.4x EV/2023 adjusted EBITDA, more than four multiple turns below the overall stock market. Bridging half this gap would push the share price above $20. With 84% of its 2023 revenue in its largest business, Water Handling, from long-term contracts, future revenues and cash flows are highly predictable. The company should generate $45-65m in FCF in 2024, with much dedicated to share repurchases. So, you have a rapidly growing company with a tremendous economic moat repurchasing shares and throwing off enough cash to pay double the dividend you receive as an owner of a large-cap index.