Altus Group Ltd
I already hold this in
my investment portfolio but am becoming increasingly interested in this
company’s business model and the industry in which they operate…so that being
the case the following in just a little reminder to myself to keep track of
what is going on in their business…
Company Profile
Altus Group
Limited is a leading provider of software, data solutions and independent
advisory services to the global commercial real estate industry. Our
businesses, Altus Analytics and Altus Expert Services, reflect decades of
experience, a range of expertise, and technology-enabled capabilities. Our
solutions empower clients to analyze, gain insight and recognize value on their
real estate investments. Headquartered in Canada ,
we have approximately 2,500 employees around the world, with operations in
North America, Europe and Asia Pacific. Our
clients include some of the world’s largest real estate industry participants.
Altus Group pays a quarterly dividend of $0.15 per share and our shares are
traded on the TSX under the symbol AIF.
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.
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.
Investment highlights
Industry Leadership
Market share
leader for core CRE practice areas; Altus Analytics solutions have market
standard distinction
Global Market Opportunity
Long growth runway
ahead for current offerings & new future vertical opportunities; well
positioned to capitalize on increasing need for CRE tech adoption and expert
advisory, with solid market fundamentals
Sustainable Competitive
Advantage
Limited
competition and wide moats; Altus Analytics has very strong barriers to entry
due to industry standard products, scale and global customer adoption
Financial Strength
Strong
balance sheet and cash generation with stable and recurring revenues from
global blue chip client base, with long-standing and sustainable dividend
policy in place
Strong Track Record of Execution
Steady
revenue growth since IPO (17% CAGR, 2005-2018) & successful business
transition into technology driven by financially-invested management team and
workforce (approx. 5% employee ownership)
Executive Summary
Targeting to transition Altus Analytics to +90% recurring revenue
model by 2021
In Q3, all ARGUS Enterprise (AE) sales to net new customers are
expected to be cloud subscriptions & over time migrating on premise ARGUS
software customers to cloud subscriptions
Strong recurring revenue base sustains y/y Altus Analytics revenue
growth during key transition years in 2019 & 2020
Leveraging past development investments, revenue growth and
controlled expenses supports margin expansion, targeting 30+ % by 2023
Setting 5-year goal to double revenues by 2023
For more gory details see link below hi-lighting the companies
overall strategy
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