We are initiating coverage on Voxtur Analytics Corp. (VXTR or the Corp.) with a Buy rating and target price of $2.90/share.
Voxtur Analytics Corp. offers a full-service digital valuation suite allowing for the delivery of data to investors, lenders, consumers and government entities. VXTR uses proprietary SaaS-based applications in such a way that it is de facto a one-stop-shop for efficient access to real estate data, and essentially the entire real estate process.
VXTR’s typical users are national lenders, credit unions and regional banks, entities performing loan servicing, government agencies, private investment funds, due diligence firms, mortgage insurance companies, rating agencies, and valuation companies.
According to management, VXTR’s technology can deliver a 20% cost reduction in appraisals, with a 50% reduction in the required time to perform such tasks. VXTR’s efficiency results in 95% of processed originations being clear-to-close in 10 days and 95% of title commitments being delivered within five days. Ultimately, 97% of processed originations are clear-to-close in less than five days from receipt of title commitment.
Valuation
VXTR currently trades at 13.4x our EV/EBITDA estimate for 2022 compared to its peer average of 25.9x. Using an DCF valuation model, our intrinsic value/share estimate of $2.90 assumes a discount rate of 9.2%. VXTR’s shares currently trade at a 72.1% discount to our intrinsic value estimate per share.
Target Price Derivation
Our 12-month target price of $2.90 is derived by using a DCF model, with a WACC of 9.2%, which generates a $2.90/share intrinsic value.
Our intrinsic value implies an EV/EBITDA multiple of 21.0x using our 2023E adjusted EBITDA of $71M, and an EV/EBITDA multiple of 14.6x using our 2024E adjusted EBITDA of $102M.
Recommendation
We are initiating coverage on Voxtur Analytics Corp. with a Buy rating and target price of $2.90/share.
About Voxtur
Voxtur is a transformational real estate technology company that is redefining industry standards in a dynamic lending environment. The Company offers targeted data analytics to simplify tax solutions, property valuation and settlement services throughout the lending lifecycle for investors, lenders, government agencies and servicers. Voxtur’s proprietary data hub and workflow platforms more accurately and efficiently value assets, originate and service loans, securitize portfolios and evaluate tax assessments. The Company serves the property lending and property tax sectors, both public and private, in the United States and Canada. For more information, visit www.voxtur.com.
Forward-Looking Information
This news release contains forward-looking statements that involve known and unknown risks, uncertainties and assumptions that may not be realized. These statements relate to future events or future performance and reflect management’s current expectations and assumptions which are based on information currently available to management. There is significant risk that forward-looking statements will not prove to be accurate. A number of factors could cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements discussed in the forward-looking statements. The inclusion of forward-looking statements and information should not be regarded as a representation of Voxtur or any other person that the anticipated results will be achieved, and investors are cautioned not to place undue reliance on such information.
These forward-looking statements are made as of the date of this news release and, accordingly, are subject to change after such date. Voxtur does not assume any obligation to update or revise this information to reflect new events or circumstances except as required in accordance with applicable laws.
Voxtur’s common shares are traded on the TSX Venture Exchange under the symbol VXTR and in the US on the OTCQB under the symbol VXTRF.