Stock Idea…Altus Group Limited

Stock Idea…Altus Group Limited

Symbol : AIF

Exchange: TSX

Market Cap : 1,1 Billion

Revenue : 478 Million
Three Year Revenue Growth : 14.9 %
Investment Type : Mid Cap Value/Growth

Price/Earnings : 10.4

Forward P/E : 20.0

Price/Book : 2.9

Price/Sales : 2.3

Price/Cash Flow : 20.7

Price : 29.30

Dividend Yield : 2.07
Investment Stem : Stephen Takacsy of Lester Asset Management

Altus Group Ltd provides independent advisory services, software and data solutions. The Company's segments include Property Tax Consulting (Property Tax); Research, Valuation & Advisory (RVA); ARGUS Software; Geomatics, and Cost Consulting & Project Management (Cost). The Property Tax segment performs property tax assessment reviews and appeals, and assists with property tax compliance filings. The RVA segment performs real estate valuations, litigation support, financial due diligence, research and real estate-related services. The ARGUS Software segment offers software and solutions for analysis and management of commercial real estate investments. The Geomatics segment provides geomatics solutions, such as geographic information systems, digital mapping, remote sensing, three-dimensional laser scanning and orthophoto maps. The Cost segment provides construction cost planning, loan monitoring and project management services to construction companies and financial institutions.

The dreaded metrics from Morningstar…

http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=AIF&region=CAN&culture=en-CA&ops=clear

The company’s website…

http://www.altusgroup.com/

Global provider of software for commercial real estate management and consulting services for property taxes and appraisals, used by banks, pension funds, insurance companies and real estate owners. Altus is transitioning from a consulting services company to a technology company as it migrates clients to its analytics software and integrates more of its services onto its platform in order to cross-sell these. Strong organic growth from acquisitions. Expect multiple to expand as recurring licence revenue from their software platform grows. The stock has pulled back as Altus is investing heavily in growth. Market cap is $1.2 billion. Altus pays a two-per-cent dividend.

A real estate advisory consultant firm, and also trying to build end to end software service solutions for real estate data and real estate analytics. This is what the markets are really starting to get interested in now. A higher margin business and recurring revenues.
Mawer New Canada Fund is a major stakeholder.