Home/Topics/General Investing/Sometimes You Just Have to be Patient

Sometimes You Just Have to be Patient

BR - Growth of $10K vs S&P500 for top of article

This global fintech leader provides investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers. Long-term shareholders have generated significant returns but its current valuation appears to be somewhat stretched.

Summary

  • This company has doubled its revenue since being spun off as a separate legal entity in 2007.
  • Growth has been such that within a span of 11 years this company has reached the stage where it recently became a member of the S&P500 (SPY).
  • There is not much variance between Free Cash Flow and Operating Cash Flow meaning growth does not require the company to incur significant capital expenditures.
  • An investment in this company from the time it became a publicly traded company has generated shareholder returns in excess of 500% (without dividends reinvested) and in excess of 650% with the reinvestment of dividends.
  • Dividend growth since becoming public is in excess of 10% and another dividend increase will very likely be announced within the next few weeks (if history is any indication).

Introduction

I have written 4 articles over the past year about this company with the most recent having been posted February 9, 2018. In all articles I highly recommended the company as a long-term investment.

The company in question provides investor communications and technology-driven solutions for the financial services industry worldwide. It was previously a division of another company until early 2007 at which time it was spun off into a separate publicly traded company.

It was a relatively small company from a market cap perspective in 2007 and flew under the radar for several years. In its first full year as a stand-alone entity, annual revenue was just over $2.1B. The business grew but by the end of FY2013, annual revenue had only grown to ~$2.43B. Fast forward to the end of FY2017 (FYE June 30, 2017) and annual revenue had jumped to in excess of $4.1B.

The company will be releasing its FY2018 results within the next few weeks and revenue will likely be close to the $4.3B - $4.4B range; this growth has been organic and also through acquisitions.

It consistently posts strong earnings and one nice aspect about the business is that its free cash flow is very similar to its operating cash flow; this is much the same as another company about which I recently wrote an article.

The company is no longer flying under the radar as it now has a market cap in excess of $10B. In addition, it recently became a member of the S&P500.

Long-term shareholders have been richly rewarded. It has generated a return in excess of 500% (without dividends reinvested) since going public and the compound annual growth rate of its dividend has been in the double digits over the 11 year period since become a publicly traded entity. If you include the reinvestment of dividends, the total shareholder return is in excess of 650% (Source: Tickertech).

Please click here to read the complete version of this article.

Members of the FFJ community can access reports I generate on high quality companies which add long-term shareholder value. In an effort to help you determine whether my offering is of any value to you I am pleased to offer 30 days' free access to all sections of my site. No commitments. No obligations. That's 30 days from the time you register at absolutely no cost to you!

By |July 16th, 2018|General Investing|Comments Off on Sometimes You Just Have to be Patient

About the Author:

MY TOP
"FORGET ABOUT IT" STOCK

Download my free comprehensive company report on one of my highest performing , non-commital, low maintenance stock holding.
1. Start Learning Trading Language
2. Learn What To Look For In A Company
3. Get Access To What Makes This Stock So Good
close-link
s2Member®