SRTS

Sensus is a one-product SRT (superficial radiation therapy) maker whose 2025 was a genuine air-pocket: revenue fell 34.3% to $27.5M as units sold dropped to 70 from 115, driven — per MD&A — by 'lower demand particularly from our historically largest customer.' Gross margin collapsed from 58.4% to 43.2% (higher servicing costs and up-front costs on Fair Deal placements), and the company swung to a -$7.72M net loss from +$6.65M. That is real fundamental deterioration, and the extreme customer concentration plus a lumpy history (revenue $24.4M → $41.8M → $27.5M; net income wild-swinging from $24.2M in FY2022 to -$7.72M in FY2025) make this an inherently unpredictable business — the core reason conviction stays capped.

What keeps it out of sell/avoid is the balance sheet and the price. Liabilities are just $4.94M against $48.1M of equity (0.10x), there is $22.1M of cash (~$1.34/share) and no borrowings on the revolver. Against a $50.5M market cap that's ~$28M enterprise value on $27.5M of sales — roughly 1x EV/sales — and the $3.07 stock trades barely above book of ~$2.92/share. Even in its worst year the company still generated positive operating cash flow of $528K. Downside is cushioned by tangible assets, not story.