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They have also made acquisitions in the past, so I would say there are definitely other firms in related or the same industry.

And because of this, if you look closely at the financials a large portion of the financials are due to Goodwill.

It looks like they are a consolidator of sorts trying to become the big fish in the pool.

Without looking closely I couldn't tell you if they paid too much for these firms they purchased, but Return on Capital looks pretty good if you take the goodwill accounting entries out. It actually looks really profitable, but I would need to compare this over the duration of the business cycle. It seems they have lots of recurring revenues. Something to look at definitely.

However, it looks like it is already trading on a premium earnings ratio, so if it doesn't grow quickly (as analysts are expecting) it will get hit pretty hard.

<blockquote data-quote="Ves" data-source="post: 727475" data-attributes="member: 42646">They have also made acquisitions in the past, so I would say there are definitely other firms in related or the same industry. And because of this, if you look closely at the financials a large portion of the financials are due to Goodwill.It looks like they are a consolidator of sorts trying to become the big fish in the pool.Without looking closely I couldn&#039;t tell you if they paid too much for these firms they purchased, but Return on Capital looks pretty good if you take the goodwill accounting entries out.&nbsp; It actually looks really profitable, but I would need to compare this over the duration of the business cycle.&nbsp; It seems they have lots of recurring revenues.&nbsp; Something to look at definitely.&nbsp;&nbsp; However, it looks like it is already trading on a premium earnings ratio, so if it doesn&#039;t grow quickly (as analysts are expecting) it will get hit pretty hard.</blockquote>

[QUOTE="Ves, post: 727475, member: 42646"] They have also made acquisitions in the past, so I would say there are definitely other firms in related or the same industry. And because of this, if you look closely at the financials a large portion of the financials are due to Goodwill. It looks like they are a consolidator of sorts trying to become the big fish in the pool. Without looking closely I couldn't tell you if they paid too much for these firms they purchased, but Return on Capital looks pretty good if you take the goodwill accounting entries out. It actually looks really profitable, but I would need to compare this over the duration of the business cycle. It seems they have lots of recurring revenues. Something to look at definitely. However, it looks like it is already trading on a premium earnings ratio, so if it doesn't grow quickly (as analysts are expecting) it will get hit pretty hard. [/QUOTE]

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