The Road Ahead TOI, as a spinout of CSU, is a serial acquirer focusing on acquiring and managing VMS companies within the European market. CSU remains to be the largest shareholder, owning just under half of the total shares outstanding. It has a strong organic sales growth rate, around 6% to 8% on average, and M&A continues to be the main route for capital deployment and value creation. Forward sales and earnings growth rates are expected to be in the low to mid-teens, and it has demonstrated an expanding ROE. It generates a good level of free cash flow, however, its current valuation is somewhat elevated. It also has a growing balance sheet.
The long-term outlook for TOI is that it has the potential to replicate CSU's success within the European market. It has a higher organic growth profile than CSU and is much smaller, and so this gives it a long runway for growth. (5iResearch)