Information Services Corporation, headquartered in Canada, is a leading provider of registry and information management services for public data and records.
Industrials |
Update
Industrials |
Initiation
Jonathan Hackshaw
Senior Director, Investor Relations & Capital
Mitch Lipon
IRO
Robert (Bob) Antochow
CFO
Shawn B Peters
CEO
Forecast net debt (C$m)
148.6
Forecast gearing ratio (%)
88
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 4.9 | (14.9) | (10.6) |
Relative | (2.3) | (14.2) | (9.8) |
52 week high/low | C$27.0/C$19.5 |
Despite prevailing macroeconomic headwinds and a subdued Canadian property market, Information Services Corporation (ISC) demonstrated year-on-year top-line and adjusted EBITDA growth in Q323. This was largely attributable to the MSA extension, augmented by sustained organic growth of the Services division. Net income was affected by heightened net finance costs, as a result of a rise in net debt from the C$150m upfront payment for the MSA extension. Nevertheless, ISC remains on a trajectory of securing new contracts and management reaffirms its FY23 revenue and adjusted EBITDA guidance. We maintain our forecasts and valuation of C$37, implying 79% upside.
Y/E Dec | Revenue (C$m) | EBITDA (C$m) | PBT (C$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 169.4 | 67.8 | 51.4 | 218.40 | 9.5 | 5.5 |
2022A | 189.9 | 64.4 | 46.5 | 190.78 | 10.9 | 5.8 |
2023E | 210.1 | 75.0 | 45.8 | 188.89 | 11.0 | 5.0 |
2024E | 230.2 | 89.8 | 50.9 | 208.52 | 10.0 | 4.2 |