Jim and Abigail Zimmerman of Lowell Capital Management presented their thesis on 4imprint Group (UK: FOUR) at Wide-Moat Investing Summit 2026.
Thesis summary:
4imprint is the largest direct marketer and distributor of promotional products in North America. Founded in 1987 and headquartered in London, it generates ~98% of revenue in the US and Canada yet trades on the London Stock Exchange. It supplies customized apparel, drinkware, bags, and writing instruments to small and medium-sized businesses, holding about 5% of a fragmented $20+ billion industry where no competitor approaches its scale.
The model is asset-light. Under its drop-ship model, suppliers hold inventory and ship directly to customers, holding capex to 1-2% of sales and producing ROACE above 40%. Jim and Abby call FOUR the “Amazon of promotional products,” sitting between customer and supplier and selling certainty and service. Marketing is the primary growth investment: FOUR spends $150-175 million per year and earns $6-9 of revenue per marketing dollar, a budget exceeding most competitors’ revenue and funding the “4imprint for Certain” brand and flywheel.
Revenue grew from about $787 million to $1.35 billion over five years, roughly 60% since 2019, outpacing 3-5% industry growth as FOUR took and retained share. Gross margin expanded from 28% to 32% and has held through inflation and tariffs. Existing customers account for 70-75% of annual orders. The balance sheet carries no debt and $133 million of net cash, and FOUR has returned more than $100 million per year to shareholders over three years through ordinary and special dividends and buybacks.
The opportunity exists because UK small caps trade at discounts to US peers, the LSE listing limits US awareness of a North American business, and 2026 tariff-related supplier cost increases drove the shares down; management calls that impact manageable. The forward dividend is 4.8%, with special dividends lifting the loaded yield toward 7-8%.
The shares recently traded near $50, about 8.5x EBITDA and 10x cash flow. Jim and Abby model 5% revenue CAGR to more than $1.7 billion, supporting roughly $190 million of EBITDA. A re-rating to 12x EBITDA plus net cash implies equity value near $2.4 billion, or about $90 per share. They also see FOUR as a possible acquisition candidate for a strategic or financial buyer.
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Wide-Moat Investing Summit 2026 was held from June 23-26, 2026. The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
Slides
Let’s take a closer look.
