Verdict: I personally wouldn’t invest in it right now, as I already have plenty of stocks, and wouldn’t feel comfortable owning such a company - it requires people to renew manually - which, on one hand, is positive, but from an investor’s view, creates risk.As part of my routine, which is meant to make me more disciplined with investing, I have found a company which, in my view, could be a very good investment.At the bottom of this post, you have access to my PDFs of my notes. But I also created a PDF version of the text generated by an AI transcript, so you can read it more easily. This can help you see my thinking process behind this company. Let me know what you think of it!All Quartix Notes AI Transcription29.3KB ∙ PDF fileDownloadDownloadHere is the investment thesis:Quartix Investment Thesis112KB ∙ PDF fileDownloadDownloadExcel custom-DCF ( I can’t send .ods files here, sorry) - PDF:Dcf Quartix 20 06 202661KB ∙ PDF fileDownloadDownloadThey make vehicle tracking software, which results in subscription-based revenue.If you become a Founding Member of the NabzdykRatings Software today (€9/mo), I will manually grant you Premium Access to this Substack for free.Become a founding memberValuation (I created my own tool, which looks like a brutalist web page), and I have also looked at a suggestion by one reader, who pointed out that basing a valuation based on previous FCF CAGR’s, and thus saying if a company is undervalued or not, is wrong. But I also want to invite you to ask me questions, as when I don’t have ANY feedback, I can only guess; however, even if you send me a small, brutally honest comment, that would be fantastic!The Raw Data. We anchor the valuation in reality. Note the Conservative Adjustment Mandate: we manually deduct Stock-Based Compensation (SBC) from FCF to prevent valuation inflation.The Hurdle: I don't use a "standard" 8% return. I demand an 11% annual return to account for the risks of small-cap international stocks. If it doesn't pass the 11% bar, it's a pass.The Implied Growth: This is the most important number in the tool. It tells us that at the current price, the market expects Quartix to grow at 12.19% annually for 10 years.The Logic Check: We compare the market's 12% requirement against the company's 14% ARR growth. This is where the human analyst decides if the "Math" matches the "Moat."Quartix has successfully been growing its ARR vs revenue by:ARR & Revenue Y/Y growth:2025: 14% 12%2024: 12% 8%2023: 8% 8.6%2022: 10.7% 7.9%So in my view, it can continue to have operating leverage.Before calculating returns, we must define the cost of capital. Note the precision: we adjust the Risk-Free Rate (4.15% to 4.6%) and Equity Risk Premium for the specific period to ensure the WACC is anchored in macro reality.No "Adjusted" Nonsense: My "Chairman's Warning" is hardcoded into the tool. We ignore the company's "Adjusted" EBITDA and pull raw GAAP EBIT directly from the annual report. This is the only way to find the true NOPAT (Net Operating Profit After Tax).The most important screenshot - showing the ROIC of Quartix Y/Y. This is why I analyzed the company. Quartix expanded its ROIC from 18.61% to 22.42% in one year. When the ROIC (22.42%) is nearly 3x the WACC (8.52%), you are looking at a world-class “Value Creator.”Generated file:NabzdykRatings Reverse DCF for international stocks
Generated on: 6/20/2026
Company: Quartix
Warning: This model relies on manual FX input as of the date generated. If currencies have fluctuated, the analysis may be materially inaccurate.
1. Inputs (Billions)
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Share Price: 2.2855 GBP
Shares Outstanding: 0.04843
Total Debt: 0.000505
Total Cash: 0.005567
Reported Free Cash Flow: 0.004471 (Reporting Currency: GBP)
Stock-Based Compensation: 0.000075
Conservative FCF Base: 0.004396
Exchange Rate used: 1 GBP = 1 GBP
2. Assumptions
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Hurdle Rate (Required Return): 11%
Terminal Growth Rate: 2.5%
3. Calculated metrics
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Enterprise Value: 0.105625 GBP (Billions)
Market Implied FCF CAGR (10 Years): 12.19%
4. Investor justification
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The market implies a growth rate of 12.19% for 10 years.
Is this justified?
Investor's Rationale:
"Quartix has succesfully been growing its ARR vs revenue by:
ARR & Revenue Y/Y growth:
2025: 14% 12%
2024: 12% 8%
2023: 8% 8.6%
2022: 10.7% 7.9%
So in my view, it can continue to have operating leverage."
Sources - if you want to verify my ARR growth rates, please search for “annualised recurring revenue” - and then the page before, you can see the Y/Y revenue growth ratesQuartix Day 7501KB ∙ PDF fileDownloadDownloadQuartix Roic596KB ∙ PDF fileDownloadDownloadQuartix Lie Detection852KB ∙ PDF fileDownloadDownloadQuartix Reinvestment Rate946KB ∙ PDF fileDownloadDownloadQuartix936KB ∙ PDF fileDownloadDownloadIf you become a Founding Member of the NabzdykRatings Software today (€9/mo), I will manually grant you Premium Access to this Substack for free.Become a founding memberhttps://www.quartix.com/content/uploads/2026/03/Quartix-Technologies-Plc-Annual-Report-2025.pdfhttps://www.quartix.com/content/uploads/2025/03/Quartix-Technologies-plc-Annual-Report-2024.pdfhttps://www.quartix.com/content/uploads/2024/03/Quartix-Annual-Report-2023_with-audit-report-amend.pdfhttps://www.quartix.com/content/uploads/2023/02/Quartix-Technologies-plc-Annual-Report-2022-for-website-compressed.pdf