One FTSE AIM stock I’ve been watching has a fast-growing business and does more trade abroad than it does in the UK.

Earnings have been increasing at pace. But the icing on the cake is the foothold the business has in the North American market.

If momentum builds in the US over the coming months and years, it’s possible the stock could perform well from where it is now.

Strong potential for growth ahead

The business is already well-established, profitable and expanding like mad. Just how I like it, with jam today and the potential for cases of the stuff in the future!

It’s Tristel (LSE: TSTL), the global infection prevention company that makes and supplies products using its proprietary chlorine dioxide (ClO₂) chemistry.

The firm’s products go to hospitals, and around 87% of sales come from its Tristel brand for the decontamination of medical devices. Another top seller is its Cache brand for the sporicidal disinfection of environmental surfaces, which delivers about 8% of total sales.

There’s been wide acceptance of the company’s offering and that shows in the multi-year trading figures. Double-digit percentage annual increases in earnings have become normal. City analysts predict more ahead for the current trading year to June 2025 with an uplift of about 20%.

Today’s (21 October) full-year report for the year to June 2024 is robust and “ahead of expectations“. The directors also included an upbeat outlook statement. That’s not surprising because the business is making big strides abroad.

Overseas sales and modest profits

For example, today’s figures show the firm earned more revenue from overseas than it did in the UK. Just under 48% of revenue came from the UK with the rest from foreign markets.

However, those UK sales delivered around 86% of profit before tax, much of it from the firm’s largest customer, the NHS. That outcome suggests selling products to places like Australia, Germany and the rest of the world may involve bigger costs. It’s also possible profit margins are lower.

So one risk here is the company’s focus on international expansion may not prove to be as lucrative as hoped. For example, the US market is a well-known graveyard for the hopes and dreams of many previous UK companies. Tesco is one that tried and failed to conquer the market.

Tristel said today it has encountered “more purchasing bureaucracy” in the US than anticipated. So it’s taking longer than expected for some customers to adopt the products. However, “momentum is growing” across the pond, and the American healthcare market is the world’s largest.

I think the setbacks and uncertainty reflect in the share price chart.

However, the weakness has sharpened up the valuation somewhat. With the stock near 388p, the forward-looking price-to-earnings (P/E) rating for the current trading year is just below 25. That’s still a growth rating, but not wildly excessive.

The US market is just one international region in which the company is making progress. So, on balance and despite the risks, I’d conduct deeper research now with a view to possibly picking up a few of the shares to hold long term.