FTG is an interesting one. Small cap stock with a lot of tailwinds that hit it coming out of the pandemic. Growing backlog, new approvals for equipment in airbuses, etc. It has very limited coverage from an analyst perspective. Definitely an under the radar stock that despite a big runup in price is not all that expensive at 25x free cash flow. Solid returns on capital, however its operating and gross margins are a little on the low side. There is not a lot of room for error with 28%~ gross margins.
The company has also been known to issue shares. Nothing crazy, but it does. This is pretty typical of a small cap, expanding company.
Solid company. Just know that if the markets do correct, small caps are often the first to take big hits. This company has lost 70%~ of its value in the past. But, it looks very interesting.
For VNP, lots of tailwinds but it is the valuation that really concerns me. The company is crazy expensive considering it is only expected to grow at a low double digit pace. This is primarily due to a lot of money flowing into semiconductor stocks right now. I'd say priced to perfection would be a good way to put it. Strong margins and a lot of growth, but the company's balance sheet is really stretched. $210M~ in debt on only $13M in free cash flow.
For a lot of these expensive semiconductor stocks, I'm more than happy to sit on the sidelines. I think valuations have gotten to the point where margin of safety is near 0.