CoreCard Corporation (CCRD), mcap=$204m, $22.62 vs $24.30

Pitch: Company offers support services for credit card issuers with 70% of sales coming from GS (for managing APPL credit card). Trades materially below peers. Investors tend to view the company more as a commoditized BPO rather than a Fintech with a valuable software stack, although CCRD operates with 50-60% GMs and at 20-25% sustained rev growth despite employing zero sales force. Excellent reputation with industry insiders with regard to technology and dependability.

Valuation: CCRD trades @ 8x forward consensus EV/EBITDA and 13x consensus P/E with net cash. Competitors trade at higher multiples with FISV at 16x/50x and ACN at 17x/28x.

Exp. gain: Not specified

Full CCRD write-up (free guest account required):

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