Managing Director James Hamel of Artisan Partners says IHS Inc. (IHS) is a stock pick with unmatched franchise value that is reasonably priced and showing 75% recurring revenues each year.
“I think of IHS as the Bloomberg-like data set provider for the energy industry…that repository of information that’s mission-critical — everything from the historical list of wells driven to productivity to who owns land, to what have the transaction values been in M&A through time — has been aggregated over a long period by IHS,” Hamel said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
IHS Inc. also has a similar model for environmental and supply chain management, Hamel says. Additionally, IHS is seeing recurring revenues with a high retention rate and is expected to increase its organic growth.
“The franchise value isn’t yet well-recognized globally…which means it’s very reasonably priced even today, in our view, particularly given the fact that about 75% of its revenues recur every year with a very high retention rate,” Hamel said.
“We think IHS is on the cusp of a topline acceleration from about 4% to 5% organic growth most recently, to perhaps toward 7% to 8% organically,” Hamel added.
AAR Corp. (AIR) Has Recurring Revenue Stream as Airline Spare Parts Supplier
March 20, 2015
HDFC Bank Limited (ADR) (NYSE:HDB) Has 90% Recurring Revenue
February 10, 2016
Tessera Technologies, Inc. (TSRA) Attractively Priced Given Growth Prospects and Recurring Revenues
April 01, 2015
Dr Pepper Snapple Group Inc. (DPS) Has Strong Franchise to Support 3.1% Dividend
April 01, 2014
SolarWinds Inc (SWI) Generates 61% Recurring Revenue with Growing Customer Retention Rates and New Subscription Model
November 15, 2013