 TOP IDEAS: With revenues up 20% in 2015, In-Touch Survey
Systems Ltd. (TSXV: INX) has set a goal to grow by 40% in 2016. To date, the
stock price is up 52%.
Prior to the release of its 2015 annual results next month,
In-Touch Survey Systems Ltd. (TSXV: INX- $0.425) announced that revenues had
jumped 20% last year to over $10 million. The Company’s management has stated
its target is to increase revenue growth by a further 40% to $14 million in
2016. With only 15.1 million shares outstanding, In-Touch Survey Systems’ stock
price has plenty of upside potential if the Company’s growth objectives for
this year are achieved.
In-Touch Survey Systems develops managed mobile software
technology and services for private businesses, governments and regulators to provide advanced interactive data capture and
measurement solutions for large organizations striving to connect with
prospects, customers, suppliers, employees and managers.
Recently the Company unveiled a new
branding strategy with a new logo and website to better represent its
enterprise class of mobile insight offerings. The suite of In-Touch solutions
is now characterized in two main product lines.
The Company’s first product line gauges
and improves operational performance for larger businesses, called Intouch for
Operations. The offering includes mobile audit and checklist software, branded
IntouchCheck; Mystery shopping solutions called IntouchShop; Operational audit
solutions named IntouchAudit; and Customer survey software indentified as
IntouchSurvey.
The second product line is called Intouch
for Events. This product line offers data capture and tracking solutions for events and provides
experiential marketing information for businesses seeking to maximize the value
of their marketing event spends. Intouch Capture is the data and lead capture
software tool and IntouchTrack provides on-site experiential tracking
solutions.
Combined, In-Touch's two product lines generate a mix of
revenue streams. The fastest-growing portion is from recurring revenue
generated from its Software as Service (SaaS) applications within the Intouch for Operations group. Other revenues
earned include one-time licensing and user fees and project-based programs.
The Company last reported in 2015, its 9-month financial
results. For the period ended September 30, 2015, In-Touch recorded revenues of
$6.86 million, which earned the Company $280,458 in net income or $0.02 per
share in earnings. Beginning in the fourth quarter of 2015, the financial
results will include the addition of Statopex Inc., a customer experience
measurement business headquartered in Montreal,
acquired by the Company in October of last year. It is
anticipated that Statoplex will add $4 million to the annual revenue base of
In-Touch Survey Systems.
We added In-Touch Survey Systems Ltd. to our list of Investorfile’s Top
Ideas – Small Cap Value Stocks in August of 2015 (See: In-Touch
Survey Systems is a small cap technology stock that is a value buy investment
opportunity). Since then the stock price has moved up 52% to a current
trading price of $0.425.
Our recommendation last year was to accumulate the stock of
In-Touch Survey Systems up to a price of $0.55 per share. We reconfirm this recommendation.
That said, if the Company’s management can achieve the revenue target it publicly
released for 2016 of $14 million (and if that additional revenue growth is
accretive to the Company’s per share earnings), the stock price of In-Touch Survey
Systems could easily exceed our price target this year.
In-Touch Survey Systems website: www.intouchinsight.com.
Author Ownership Disclosure: TSXV: INX - Yes
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This article is for
informational purposes only. This article is based on the author's independent
analysis and judgment and does not guarantee the information's accuracy or
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Investorfile.com is not
engaged in an investor relations agreement with In-Touch Survey Systems Ltd. nor
has it received any compensation from In-Touch Survey Systems Ltd. for the
preparation or distribution of this article.
The author of this article has
acquired and may trade shares of In-Touch Survey Systems Ltd. through open
market transactions and for investment purposes only. |
