ISV is a small cap company that provides information management service for the real estate market in Canada, and is now trading at 12.4x times' Forward P/E. In the 4Q, ISV’s revenue grew strongly 25% to $57.5M, beating estimates of $54.8M and EPS was $0.54 beating estimates of $0.44. A very strong quarter, driven mainly by price adjustments. The balance sheet is strong, with net debt of $163M and net debt/EBITDA of 2.4x. The company’s business is highly predictable over the years, which supports healthy dividend growth. We think ISV is an attractive dividend grower over time given the predictable, recurring nature of the business. It is not exciting, but highly stable and predictable. Shares are doing very well and with lower rates could continue some gains.
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