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  5. AIF: Good morning 5i team Altus receives little attention from your subscribers. [Altus Group Limited]
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Investment Q&A

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Q: Good morning 5i team

Altus receives little attention from your subscribers. Its share price has increased after the sale of its property tax business, debt pay down, and share re-purchase.
I am trying to decide if their shares represent a solid opportunity to now buy.

Several questions please.

Does 5i view Altus as having meaningful competitive advantage versus peers in providing CRE intelligence services?

Does 5i view Altus as a 'wide, narrow or no moat' company?

Does 5i feel that Altus has a significant runway to gain market share, grow revenue and profit in the CRE market over the next few years?

And finally, would 5i recommend buying Altus shares now, or perhaps wait for a pullback?

Thank you.

Edward
Asked by Edward on August 01, 2025
5i Research Answer:

AIF discusses its advantages, and its growth rate implies somewhat of a moat, but this is hard to confirm and of course the comments are from the company itself: ARGUS Platform Dominance: Altus’ ARGUS software suite—including ARGUS Enterprise and the next-generation ARGUS Intelligence—remains the industry standard for CRE valuation, cash flow forecasting, and asset management. ARGUS is widely taught and used by CRE professionals and embedded in university curricula globally, ensuring that CRE practitioners are trained on Altus’ platform from the start of their careers.

Integration of AI and Predictive Analytics: The company is leveraging AI and advanced analytics to provide automated data connectivity, scenario analysis, and benchmark management. This modernizes CRE portfolio management and delivers instant performance insights—a step beyond many legacy systems.

Unmatched Proprietary Data: Altus Group boasts a proprietary dataset covering more than 54 million commercial properties in the U.S., 68 million sales transactions, and tens of thousands of Canadian listings—making its market insights and benchmarking peerless in scope and granularity.

2) For now, we would say 'narrow'. 

3) We do think it has a good growth runway.

4) AIF at 35X earnings is not cheap. But, with a small company that one expects to do well, 'waiting' is not always a wise move. We would be OK buying.