There’s an active discussion regarding VICOM at one of the local investing forums – Value Buddies. Let’s go through the qualitative aspects of the company first. I think VICOM has a narrow economic moat at the very least for its vehicle testing services. The good thing about their business is that their profits are recurring. You have to get your car certified with them at some point in your lives. Lets look at the fundamentals of the company.

Revenue & Earnings

VICOM has been growing its bottom line really well over the past few years. Its average annual growth rate is an astonishing 18.2%.

Financial Leverage

The great thing about VICOM is that its a very cash rich company. It has no debt on its balance sheets – a very big plus for me.

Returns on Equity

Returns on Capital are nearly identical to Returns on Equity as there are ......