Author Topic: WSTG - Wayside Technology  (Read 378 times)

watsa_is_a_randian_hero

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WSTG - Wayside Technology
« on: March 27, 2018, 12:23:45 PM »
Does anyone follow this company?

Positives:
  • Significant revenue growth from management over the last 10-20 years. 
    High Magic-formula valuation
    Consistently returning cash: Cash negative from financing (net debt repaid/dividends/buybacks) every year for 20 years
    Strong balance sheet - no debt; At the same time, Capital efficiency - very light on cash
    Not be best-in breed technology company from a product perspective, but still has good tailwinds
    Scuttlebutt such as reviews on glassdoor are pretty good for a company its size


I've owned since 2014; the current decline perplexes me.  I understand margins have been falling (as compared to last 5-10 years), but are still in line with longer-term averages.  Am I missing something more here, or is this all driven by margin concern?