Real Matters (TSX:REAL) is a Toronto-based company that provides technology and network management solutions to mortgage lending and insurance industries in North America. Its shares have plunged 41% in 2021 as of mid-afternoon trading on September 21. Despite its rough patch in 2021, I’m still bullish on Real Matters for the long term.
Canada and the United States have experienced a real estate boom since the start of the COVID-19 pandemic. Loose monetary policy has led to friendly borrowing rates. Meanwhile, demand has increased for single-family homes as more people are looking to move out of major metropolitan areas. The nature of work has shifted during this crisis, and the rush for real estate will continue in the months and years ahead.
The company unveiled its third-quarter 2021 results on July 28. It has launched eight new lenders in U.S. Title in the year-to-date period. Moreover, it launched six new lenders in U.S. Appraisal. Consolidated revenues rose 9.6% year-over-year to $129 million in Q3 2021. It delivered consolidated revenue growth of 14% in the year-to-date period.
Shares of Real Matters stock possess a favourable price-to-earnings ratio of 20. The stock last had an RSI of 34. That puts Real Matters just outside of technically oversold territory. I’m still looking to add this real estate-linked technology stock in late September.
