In Mid 2025, I came across Tactile Systems.

From $10 in 2016 to $75 by 2019. Then post-COVID, collapsed to single digits and chopped sideways for years.

The numbers told a different story than the chart.

Revenue up and to the right consistently. Cash flow choppy until 2023, then exploded positive into the year end. Return on invested capital climbing into double digits.

Share count was disciplined. No dilution even when things got hard. They had just started buying back.

Zero debt. Over $80M in cash.

Then I looked at the qualitative side. Category-leading products. A new CEO with 30 years experience from a large healthcare company. The current headwinds were operational, not structural.

It felt like a no brainer trading at ~6x EV/FCF with serious competitive advantages in a highly regulated space.

It is still attractive today.