34 Stock Pitches (27th July-2nd August) 🟢

Latest stock pitches from fund managers and stock picking newsletters. Find your next idea >

Welcome to another edition of the Capital Employed Newsletter.

If you’ve not done so already make sure to check out the Q2 2026 Fund Letters Round-Up - 134 letters have been added so far. It’s a treasure trove of insights and ideas.

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Latest interviews with fund managers/private investors sharing their best ideas…

#138 - Seb Krog (Treasure Hunting)📗

#137 - Colin King (Value Don’t Lie) 📗

#136 - Dan Rupp (Parkway Capital) 📗

BEST IDEA AWARD FOR THIS ISSUE 🏆

BAVARIA Industries Group AG on The Property Franchise Group 🇬🇧

Rather than owning large networks of company-operated branches, TPFG mainly acts as a franchisor. The local offices are independently owned by franchisees, while TPFG provides branding, technology, support systems, training, compliance assistance, and referral networks in exchange for recurring royalty fees.

The underlying economics are also impressive. The business generates EBITDA margins of roughly 45%, converts more than 100% of earnings into free cash flow, and earns after-tax returns on invested capital above 20%.

Despite the quality of the business, TPFG still trades at roughly 12x expected 2025 free cash flow, with very modest leverage of around 0.3x net debt to EBITDA. For a business with recurring revenue, high cash conversion, and long-term organic growth, that valuation does not strike me as demanding.

Our own expectation is that TPFG could compound earnings per share at roughly 13–15% annually over the next several years through a mix of organic growth, operational improvements, acquisitions, and ongoing share count discipline.

A round-up of the best ‘fresh-off-the-press’ stock pitches…