The company has posted some exceptional growth coming out of the pandemic. Prior to COVID, the company had grown at a fairly reasonable pace but nothing too alarming. But from 2020 to 2023 the company has more than doubled its revenue and has nearly doubled earnings as well.
The company has a very wide range of products. NGL transportation vehicles, storage vessels, home heating products etc.
It is a growth via acquisition company, which can tend to be multi-baggers if the management team is able to identify strong acquisitions at reasonable prices and integrate them into the fold.
Terravest's success is along the same lines as a company like Constellation and even Enghouse pre-pandemic.
I wouldn't be in any rush to sell the company at this point in time. It is executing very well. The risks? A couple. One, from a valuation standpoint. The company is no longer "cheap" and is relatively undercovered by analysts overall. Secondly, growth by acquisition companies are always at the mercy of their management. We witnessed Enghouse lose its touch post pandemic, couldn't find any promising acquisitions, which in turn materially impacted returns. This is amplified even further if those acquisitions are made with debt, which is the case with the company. It doesn't take much in terms of a weak acquisition to start impacting results when it's financed.
And obviously with the company operating in sectors like energy, agriculture, and transportation, it can be sensitive to economic cycles and commodity price fluctuations.
Solid company thus far though, a huge compounder.