Added to YB: 2026-04-07
Pitch date: 2026-04-04
SPCB [bullish]
SuperCom Ltd.
-1.09%
current return
Author Info
SpruceHill Capital is a value investor with a focus on illiquid small and micro cap stocks. Sign up for the newsletter.
Company Info
SuperCom Ltd. provides traditional and digital identity, Internet of Things (IoT) and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide.
Market Cap
$38.6M
Pitch Price
$8.24
Price Target
N/A
Dividend
N/A
EV/EBITDA
8.68
P/E
9.82
EV/Sales
1.80
Sector
Electronic Equipment, Instruments and Components
Category
growth
SuperCom: Nano cap disruptor with 80% underlying growth hidden by skewed accounting, while trading at 4x EBITDA
SPCB: Offender e-monitoring disruptor w/ 80% underlying growth hidden by skewed ASC 606 accounting from Romania contract. 2023-24 revenues inflated by $26.4M upfront hardware sales; 2025 core biz (ex-Romania) grew 80% YoY to $18M as US leasing model drives gross margin from 38%→62%. Won 65% of EU gov tenders, 35+ US contracts across 15 states since mid-2024. Trading 4x Q3 annualized EBITDA ($7.2M), 9.5x normalized FCF ($4M). Clean balance sheet: $13M cash + $26M receivables vs $21M debt. Market cap $38M. Industry CAGR 7.2%, driven by prison overcrowding & cost savings ($2.9K/yr vs $36.5K incarceration). Mgmt estimates 25-40% 2026 growth; path to multibagger as margins expand & US scales.
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