$SEMR small cap multibagger top pick | 100-200% ROI- NYSE:SEMR is one of my topic for small caps.
- NYSE:SEMR is growing revenue in double digits 20%+
- High profit margin ~80%+
- Popular/Go-to tool for SEO Expert.
- With Agentic AI, Agents go and search results for the user. For example, all the foundational LLM have websearch option. SEO is more critical than ever before because a solid SEO strategy will help a foundation model to show your website in the search result.
- NYSE:SEMR is building AI tool capabilities as well which is an opportunity to upsell their offerings.
- Debt-free capital structure plus a cash-rich position (~$262 M, exceeding debt), and current ratio above 2× signal strong liquidity
Fundamentally,
Year | 2025 | 2026 | 2027 | 2028
EPS | 0.35 | 0.47 | 0.63 | 0.87
EPS growth% | 25.24% | 33.51% | 36.02% | 37.55%
For a company growing EPS close to 30s with a brand value deserves a forward p/e of 30
Base Case ( forward p/e = 30 )
Year | 2025 | 2026 | 2027 | 2028
Price | $10.5 | $14.1 | $18.9 | $26.1
Conservative Base Case ( forward p/e = 20 )
Year | 2025 | 2026 | 2027 | 2028
Price | $7 | $9.4 | $12.6 | $17.4
Bear Case ( forward p/e = 15 )
Year | 2025 | 2026 | 2027 | 2028
Price | $5.25 | $7.05 | $9.45 | $13.05
Bull Case ( forward p/e = 35 )
Year | 2025 | 2026 | 2027 | 2028
Price | $12.25 | $16.45 | $22.05 | $30.45
I expect the stock to return almost 100-200% in less than 3 years with a CAGR of 20-35% for the next 3 years through 2025-2028
