Proactive Investors - Run By Investors For Investors

Information Services is high-quality business at discounted price, suggests J.C. Clark's Stewart

Its strong balance sheet allows for more acquisitions and it has a dividend yield of about 5%, says Stewart
Information Services is high-quality business at discounted price, suggests J.C. Clark's Stewart
The company has long term contracts that generate 'significant' cash flow

Shares in public data group Information Services Corp (TSE:ISV) nudged higher Wednesday as it received an upbeat assessment on its potential from J.C. Clark manager Colin Stewart.

The Globe and Mail newspaper today reports that Stewart notes that the company has long-term contracts that generate 'significant' cash flow and has 'high barriers' to entry.

40% upside seen 

Its strong balance sheet allows for more acquisitions and it has a dividend yield of about 5%.

The firm represents "an opportunity to buy a high-quality business at a discounted price", he suggests.

The Saskatchewan-based company provides registry and information management services for public data and records.

Stewart sees 40% upside in the company and it trades at a discount because it is followed by a few sell-side analysts and institutional investors.

It has also been hurt by concerns about the Saskatchewan housing market, he says.

However, the company collects revenues from more than Saskatchewan land sales, where it has an effective monopoly and is in year five of a 20-year deal.

It also does a variety of corporate and personal-property registry services in the province, and it has started expanding outside of its prairie home, with a license to register property in Ontario and deals to acquire technology to serve Canadian lenders, says Stewart.

Shares are up 1.85% to $15.99 in Toronto.

 

Contact Giles Gwinnett at [email protected]

Follow Giles on Twitter @Gile74

 

View full ISV profile View Profile

ISC Timeline

Related Articles

Circuit board
December 04 2018
The customised electronics maker reported an underlying pre-tax profit of £12.9mln, up 24% on the same period a year ago, while revenues climbed 12% to £211.7mln
data
March 14 2018
Chief executive Jeff Stusek also noted the information management specialist made significant acquisitions last year.
WYG
January 03 2019
Over the next 24 months, the firm is aiming towards becoming cash positive and achieving a 5% net operating profit margin with a "clear road path" to 8%.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use