INS

Intelligent Systems Corp

TMT


Presented:01/22/2020
Price:$40.20
Cap:$0.36B
Current Price:$12.36
Cap:$0.10B

Presented

Date01/22/2020
Price$40.20
Market Cap$0.36B
Ent Value$0.35B
P/E Ratio37.3x
Book Value$3.76
Div Yield0%
Shares O/S8.90M
Ave Daily Vol70,435
Short Int18.56%

Current

Price$12.36
Market Cap$0.10B
Intelligent Systems Corp. engages in the management of emerging technology companies. It operates through the CoreCard Software, Inc. and affiliate companies, which involves in the design, development, and marketing of software solutions to corporations, financial institutions, retailers, and processors to manage credit and debit cards, prepaid cards, private label cards, fleet cards, loyalty programs, and accounts receivable and small loan transactions. The company was founded in 1973 and is headquartered in Norcross, GA.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Fiserv Inc (FISV), Goldman Sachs Group Inc/The (GS), Intelligent Systems Corp (INS)

Highlights

The presenter is long shares of Intelligent Systems Corp (INS), which he considers the premier way to play the success of the Apple Card. The stock has been a four-bagger over the past eighteen months, yet he feels that the market still does not appreciate the Apple Card opportunity and INS’s powerful earnings growth runway. The current ~$40 share price values shares at ~23.5x the presenter’s 2020 EPS estimate, yet he notes that fintech is an attractive category and INS could therefore reach the ~35x valuation that other fintech companies are receiving once coverage improves. This would yield a stock price of ~$60, but his DCF model estimates an even higher ~$65 price target if investors believe in the longer-term story. 

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Idea Discussion

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