Summer Sale

50% off Premium Yearly

00days
00hrs
00mins
00secs
Stockchase Opinions

Stockchase InsightsReal Matters Inc.REAL.TOHOLDJan 29, 2021

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The street seems to not like the slight miss. EPS missed expectations by 1 cent. Overall revenues of $44M met estimates with net revenues rising 24%. No real concern. However the price action is not good and there may be turnover before it stabilizes. 5i would not recomend adding here. Unlock Premium - Try 5i Free

$16.75

Stock price when the opinion was issued

$5.09

As of Jun 17, 2026. Market Open.

Financial Services
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

REAL is in recovery mode; it has a solid Q2 with a 27% 'beat' on earnings. It also has good positive leverage to lower interest rates (now occurring) and the real estate market. Earnings in the next two years will still be significantly lower than they have been historically, but at least EPS is back in growth mode (3c to 14c expected 2025/2024). The balance sheet remains strong and there has been some insider buying this year. It remains expensive on expected earnings, but there is improvement occurring here. 
Unlock Premium - Try 5i Free 

WAIT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

REAL has had a difficult time since its IPO, but its earnings results are beginning to improve, growth is expected to pick up, and with a declining interest rate environment, it could see market tailwinds. It has slowed down on share buybacks and earnings estimates have been falling. We would like to see its earnings estimates pick back up, but with that said, growth is still expected to be strong. Its valuation is OK, but we think a pullback might be warranted after its strong recent run, and overall, the name is not as attractive as it initially was at IPO. We think it can do OK, but its track record has not been excellent.
Unlock Premium - Try 5i Free 

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Diversified revenue streams. Niche business model. Growing its client base and quality of clients. Technology-based tailwinds.
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Diversified revenue streams. Niche business model. Growing its client base and quality of clients. Technology-based tailwinds.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes the valuation but there needs to be some execution and growth must resume. Investors love to hate the stock so positive news tends to move the stock more. Ok to own a small weighting. Unlock Premium - Try 5i Free

RISKY
They don’t have the history he is looking for. He has come close to buying them before. Size the position accordingly but it looks promising.
COMMENT
Not an expert on this, but he worries about their exposure to real estate, given how interest rates have crumbled. REAL has been doing well during Covid, though. He wants to see how REAL does in a real estate bear market to see how their business model holds up. This may be fine if you have a long-term horizon, but he wants to see more of a history before stepping in.
COMMENT
Mortgage processing type business. The gap between Main Street and Wall Street has been bridged by monetary policy. Fiscal downside is much larger in the US than other places that are more social democracies. Recovery will be tied to vaccine roll out and near term support from governments. You must weigh these into your investment choices.
WATCH
He got stopped out on this recently as it started to fall. He's watching it. It should have a tailwind going further from the refinancing of mortgages given very low interest rates. Their technology allows this to be done efficiently. He expects the US housing market to remain strong which benefit REAL. He will re-buy when this bottoms.
COMMENT
Target of $26.84. Insurance appraisers and real estate agents use their software for residential properties. Canadian, but over 90% of revenues are from US. Expensive, but 21% ROE. He owns other large and mid-caps in the industry.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock has pulled back although there has not been any particular reason for the decline. It could be a good entry point at these prices. Unlock Premium - Try 5i Free

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A Canadian network management services provider for mortgages and insurance. The company has a good balance sheet with very solid growth. It’s currently not too expensive. Unlock Premium - Try 5i Free

COMMENT
It was beaten up for many years. With all the refinancing given rock-bottom interest rates, volume has picked up, so REAL benefit (providing software to the real estate, mortgage financing sector). The easy money has been made. If you buy this, hold for a long time.
TOP PICK

The Uber of real estate transactions. They connect lenders, lawyers and realtors together. The more value you can bring to these groups the more they can charge. Lots of runway for revenues going forward. Yield 0% (Analysts’ price target is $16.00)