YB new stock pitches (Wed, May 14)

Steven Madden, Ltd. (SHOO) designs and sells fashionable women's shoes, accessories, and apparel at accessible price points, trading at 8.93x earnings with a 3.52% dividend yield, significantly cheaper than Skechers' recent acquisition at 15x by 3G Capital. The company has a solid balance sheet, consistently earns 15%+ returns on capital, produces strong free cash flow ($163.19 million LTM), and has reduced share count by 22% over the past decade. SHOO's stock price has halved due to tariff concerns despite industry-leading inventory turns (5.5x) and strong competitive advantages including its 'test-and-react' strategy, loyal customer base, and consistent 40% gross margins. CEO Ed Rosenfeld has demonstrated intelligent capital allocation, achieving 117% EPS growth over the past decade and 32.3% return on tangible equity last year. The company recently acquired Kurt Geiger for $384.14 million (approximately 8x EBIT), its largest acquisition to date, financed primarily through a $300 million term loan. As founder Steve Madden approaches retirement (owning 3.46% of shares), potential catalysts include acquisition interest following the Skechers deal or increased share buybacks.

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Centrotherm International AG (CTNK.F), a German supplier of process technologies for the photovoltaic and semiconductor industries, is significantly undervalued at just 2.7x P/E ratio and -0.65 EV/EBITDA. The company has doubled its EBITDA to €39 million and increased sales by more than 50% to €240 million in 2024, with a strong order backlog of €458 million and doubled liquidity to €96 million. With consolidated equity of €110 million and net income exceeding €25 million, the major catalyst is management's decision on utilizing this capital—potentially through dividends, share buybacks, delisting with a shareholder offer (which would cost only €21 million at €10 per share), M&A activity, or business investments. The stock remains undervalued due to its low profile (90% owned by Solarpark Blautal GmbH with only 10% free float) and limited analyst coverage despite operating in high-growth industries tied to energy transition and digitalization. The 3-year price target is €15.6 (+303%) based on a fair P/E ratio of 15.3, compared to the current price of €3.86.

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Intermap Technologies (IMP.TO), a geospatial intelligence provider with an $83 million market cap, has transformed from a volatile trading stock to a promising investment opportunity following successful restructuring. The company experienced 180% revenue growth to $17.6 million in 2024, with 20%+ EBITDA margins, driven by a significant Indonesian One Map Program contract ($180 million over 4 years) and growing US Defense contracts. The business model features three revenue streams: Acquisition Services, Value-added Data services, and Software and Solutions, with roughly half being recurring revenue. Intermap's model is capital-light as clients often finance capex needs while the company maintains data ownership, allowing for future leveraging across multiple clients. Management's 2025 guidance projects nearly doubled revenues with expanding margins, highlighting potential for 50%+ EBITDA margins long-term. Currently trading at approximately 9x EV/EBITDA on FY25 estimates with a projected 40% EBITDA CAGR over the next three years, Intermap represents a compelling opportunity in the geospatial intelligence sector.

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