Solium Capital Continues to Grow

The story is intact after the company released its quarterly results.

The Motley Fool

Solium Capital (TSX:SUM) was profiled in a recent edition of our free weekly newsletter, Take Stock. (click here to sign up and have future editions delivered right to your inbox)

The company reported its quarterly results recently and an update is warranted given the 16% move the stock has had since our profile appeared.

What attracted us to Solium is the unique product that it offers and the seemingly endless opportunity the company has to disrupt the industry that it’s in.  And though the second quarter was relatively benign, nothing in the company’s release has altered these qualities.

Even though Solium’s recent U.S. acquisitions caused a drag in the quarter as they are being integrated into the company’s platform offering, nice year over year growth was still achieved.

Revenues increased by 31% over the Q2’12 and diluted earnings per share jumped 173% over the same period (in adjusted terms).

The drag caused by these integration and strategic initiatives was nicely offset by increased activity on the company’s trading platform.

With little need to spend much on capital expenditures, Solium’s business model is well suited to free cash generation and indeed, the cash balance has climbed to more than $17 million.  The balance sheet is debt free and Solium is well positioned to continue tacking on additional services to its already industry leading offering through acquisition.

The Foolish Bottom Line

Solium’s future is not to be judged on a quarter by quarter basis as this is a company that is set to evolve over the long-term.  Pull backs are likely to be part of the ride.  However, it’s nice to see that all arrows relating to the company’s fundamentals continue to be pointed in the right direction.  Up!

Though we like Solium, it didn’t quite make the cut for our recently released top Canadian small cap stock for 2013 – and beyond.  To find out which company beat it out, simply click here now and download our FREE profile.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares in any company mentioned at this time.  The Motley Fool doesn’t own shares in any of the companies mentioned.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

a person watches a downward arrow crash through the floor
Dividend Stocks

Market Correction Warning: Buy These 2 TSX Dividend Stocks Right Now

Invest in these two TSX dividend stocks if you’re worried about a correction and seek dividends to mitigate losses during…

Read more »

Dividend Stocks

Earn While You Sleep: 3 Canadian Dividend Stocks for Effortless Earnings

These companies have a solid track record of dividend payments and growth, making them no-brainer stocks for effortless earnings.

Read more »

A worker gives a business presentation.
Tech Stocks

This Stock Could Be the Best Investment of the Decade

Despite being a far cry from its peak as an original giant in the smartphone market, BlackBerry (TSX:BB) stock could…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Investing

My Top 2 Canadian Defensive Stocks for Uncertain Times

Own Metro (TSX:MRU) and another great low-beta dividend stock amid volatility.

Read more »

Pile of Canadian dollar bills in various denominations
Tech Stocks

Where I’d Invest $1,000 in the TSX Today

You can get the best deal by investing $1,000 in the TSX’s next high-growth stock today.

Read more »

money goes up and down in balance
Dividend Stocks

Scotiabank: Buy, Sell, or Hold in 2025?

Bank of Nova Scotia is down 15% in 2025. Is the stock now oversold?

Read more »

dividend growth for passive income
Stocks for Beginners

Where to Invest $500 in 2 Growth Stocks for Beginners Starting Small

Beginning to invest has never been easier. Here are two growth stocks to buy with $500 for a long-term portfolio.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Why Enbridge Below $65 Could Be a Good Buy for Long-Term Investors

Enbridge is a blue-chip TSX dividend stock that offers you a tasty yield of 5.8% while trading at a discount…

Read more »