Summary
- In uncertain times, CoStar resembles one of the surest real estate bets on the market.
- Its state-of-the-art software platform has become a consistent, cash-producing machine.
- Management has proven to be one of the best deal makers in the game, and their balance sheet supports further spending.
- Revenues continue to grow and margins are second to none.
- Although currently pricey, we remain bullish on the company due to its robust fundamentals, growth drivers, and countercyclical foundation.
Most 30-year-old companies have historically plateaued or become complacent. CoStar Group (CSGP), however, has actually improved its business fundamentals and continued to expand its footprint in the real estate sector.
Not resting on its laurels, it is has evolved from being a database and research company into a full-fledged online marketplace serving the rental and commercial real estate sectors.
CSGP combines a sophisticated software platform with a growing advertising business that has been consistently upgrade by a team of master capital allocators.
