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Victorious Investing's avatar

Great write-up, you've peaked my curiosity to look further into them. Thanks.

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Capital Employed's avatar

Nice write-up, thanks.

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Isaac's avatar

Thank you for the kind words.

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Jam_invest's avatar

Thanks Isaac!

The gross margins look very low for any type of proprietary software activity. Can you elaborate on what causes that, besides OPAP’s bargaining power, and the low scale?

You’ll may find this SaaS company 👇 interesting too…

https://jaminvest.substack.com/p/hidden-gem-10-us-saas-microcap

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Isaac's avatar

If you look at the Cost structure (expenses by Category), it seems like they allocate most/all of employee expenses to the COGS.

Inventory & Consumables related to COGS are only 1/3 of total COGS…

With these types of businesses, comparing GM is very tough.

I believe it doesn’t make all that much sense to look at the COGS / GP. But rather look at the EBIT.

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Isaac's avatar

And OPAP only should have material impact (if any) on the FsO business Margins

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