ISV shares were under pressure recently, especially after the company's earnings release. In 2Q, ISV’s revenue grew 5% to $53.3M, missing estimates of $54.5M and EPS was $0.46, also missing estimates of $0.54. Double misses on top and bottom lines. In addition, weakness in the overall market due to interest rates being expected to stay higher for longer also contributed to weakness for many small-cap names. We think the company is trading at quite attractive valuations. ISV is trading at only 10x Forward P/E while expecting to grow its topline around 15% over the next few years. Consensus calls for good growth in 2024, but historically growth has not been great. The dividend was raised last in Aug. 2021. There is value here, but it also could possibly be a value trap. Shares were $19 in 2017, and six years later only $20.
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