Iress Ltd (ASX: IRE) shares are trading near an all-time high having gained over 2% on Wednesday to touch $12.02.
At these levels, Iress' share price is back within striking distance of its all-time high of $12.35, which it set back in April.
While the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has found support today, having gained around 0.5% in afternoon trade, Iress' strong performance is likely thanks to a well-received Investor Day which the company is holding.
Here are some highlights from today's presentation:
- Iress is a leading provider of information, trading, compliance, order managment, portfolio, wealth management and enterprise lending software tools
- Iress offers investors a global presence with 17 global office locations
- The group has a ten-year track record of dividend growth and its total shareholder return over the past decade has significantly outperformed the wider market
- The company enjoys recurring revenues and strong cash conversion
- Its business is diversified across products, markets and geographies. This diversification has increased significantly over the past decade
- The company has market-leading positions including servicing 95% of sell-side brokers in Australia
- Iress spends around $80 million per annum on product and development investment. This is key to staying ahead of the competition and entrenching its market-leading position
Buy, Hold or Sell?
In 2015 (the group operates on a calendar year basis) Iress achieved a 5% increase in revenues on a constant currency basis. The dividend was raised by 3%.
Based on its 2015 results, the stock is trading on a price-to-earnings multiple and dividend yield of around 34 times and 3.5% respectively.
That looks to be a pretty full valuation in my opinion and conservative investors would arguably wait for a more appealing entry point into this quality company.
