CoreLogic: Data and Analytics
07/01/2015 8:00 am EST
Corporate America is thirsting not just for the right data, but the tools to analyze that data. This demand for data and analytics puts certain companies in an enviable position, suggests Chuck Carlson, editor of DRIP Investor.
One such company that is not a household name to most investors but is one of the top data firms in the world is CoreLogic (CLGX).
The firm provides data and analytic services to a host of industries, from automotive and energy to telecommunications and utilities. But it is the company’s services in the real-estate sector where it truly shines.
The firm collects and maintains the most comprehensive and current property, mortgage, and financial databases in the US, Australia, and New Zealand and has a growing presence in the European Union, Canada, Mexico, and India.
The firm’s databases encompass more than 3.5 billion property and financial records, including 99% of US property records.
Clients include more than 500 lending institutions, 2,500 mortgage bankers, more than 250 Wall Street firms, over 650,000 real estate agents and brokers, and 19 federal agencies.
CoreLogic also provides tools to analyze the data in order to help companies make better decisions, spot trends, and detect risk.
The company is coming off a solid first quarter. Revenues rose 12% and per-share profits of $0.46 were $0.15 better than the consensus Wall Street estimate. For 2015, per-share profits should rise at least 33% to $1.78.
The balance sheet, though highly levered, is improving. CoreLogic currently does not pay a dividend, but I would expect that situation to change over the next 12 months.
Trading at 22 times the 2015 earnings estimate, CoreLogic shares aren’t cheap. However, I think the premium valuation is justified.
The stock has performed well over the past 12 months, rising more than 40%. Still, I see further upside for the stock and would be a buyer at current prices.
Given that the company’s market cap is less than $4 billion, the firm would be an easy swallow for a larger firm looking to expand its data and analytical capabilities.
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