Information Services Corporation - Cash flow fuelling ambitious growth plan

Information Services Corporation (ISC) has entered a new era of strategic growth, striving to double both revenue and adjusted EBITDA (on an FY23 basis) by 2028. Its Registry Operations will be a strong foundation to enable this growth, generating more than C$1.3bn in cash flow to 2053. Registry revenue was up 27.5% y-o-y in H124 due to a full year of fee uplifts combined with robust market activity in Saskatchewan. The Services segment continues to demonstrate strong organic growth, with revenues up 14% y-o-y. Continued organic growth in both the Services and Technology Solutions segment is essential for ISC to reach its 2028 targets. We value ISC at C$40/share (48% upside to the current price).