5.97 USD
+0.2 (+3.47%)
5.91 USD
-0.06 (-1.01%)
Taking everything into account, III scores 5 out of 10 in our fundamental rating. III was compared to 85 industry peers in the IT Services industry. Both the profitability and the financial health of III get a neutral evaluation. Nothing too spectacular is happening here. III is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year III was profitable.
In the past year III had a positive cash flow from operations.
In the past 5 years III has always been profitable.
III had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
III has a Return On Assets of 4.58%. This is in the better half of the industry: III outperforms 64.71% of its industry peers.
III's Return On Equity of 10.32% is fine compared to the rest of the industry. III outperforms 65.88% of its industry peers.
III has a Return On Invested Capital (4.68%) which is comparable to the rest of the industry.
III had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 29.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROIC | 4.68% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
1.3 Margins
With a Profit Margin value of 4.05%, III perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin (5.32%) which is comparable to the rest of the industry.
III's Operating Margin has declined in the last couple of years.
III's Gross Margin of 42.24% is fine compared to the rest of the industry. III outperforms 62.35% of its industry peers.
III's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.32% | ||
| PM (TTM) | 4.05% | ||
| GM | 42.24% |
OM growth 3Y-38.37%
OM growth 5Y-14.34%
PM growth 3Y-40.99%
PM growth 5Y-1.58%
GM growth 3Y-0.08%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
Compared to 1 year ago, III has less shares outstanding
The number of shares outstanding for III has been increased compared to 5 years ago.
The debt/assets ratio for III has been reduced compared to a year ago.
2.2 Solvency
III has an Altman-Z score of 2.46. This is not the best score and indicates that III is in the grey zone with still only limited risk for bankruptcy at the moment.
III has a Altman-Z score (2.46) which is comparable to the rest of the industry.
III has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as III would need 2.22 years to pay back of all of its debts.
The Debt to FCF ratio of III (2.22) is better than 67.06% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, III is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for III, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.55
WACC8.47%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
III's Current ratio of 2.22 is fine compared to the rest of the industry. III outperforms 64.71% of its industry peers.
III has a Quick Ratio of 2.22. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of III (2.22) is better than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
III shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
Measured over the past years, III shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.16% on average per year.
Looking at the last year, III shows a decrease in Revenue. The Revenue has decreased by -5.74% in the last year.
The Revenue has been decreasing by -1.41% on average over the past years.
EPS 1Y (TTM)50%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%80%
Revenue 1Y (TTM)-5.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%1.77%
3.2 Future
The Earnings Per Share is expected to grow by 37.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y63.62%
EPS Next 2Y34.08%
EPS Next 3Y37.07%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y1.22%
Revenue Next 3Y2.54%
Revenue Next 5Y3.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.90, which indicates a rather expensive current valuation of III.
III's Price/Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 68.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, III is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.60, the valuation of III can be described as correct.
68.24% of the companies in the same industry are more expensive than III, based on the Price/Forward Earnings ratio.
III is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
III's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, III is valued cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 18.17 |
4.3 Compensation for Growth
III's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as III's earnings are expected to grow with 37.07% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y37.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, III has a reasonable but not impressive dividend return.
III's Dividend Yield is rather good when compared to the industry average which is at 1.95. III pays more dividend than 97.65% of the companies in the same industry.
III's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
III has been paying a dividend for over 5 years, so it has already some track record.
III has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
III pays out 117.63% of its income as dividend. This is not a sustainable payout ratio.
DP117.63%
EPS Next 2Y34.08%
EPS Next 3Y37.07%
5.97
+0.2 (+3.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners67.43%
Inst Owner Change2.08%
Ins Owners14.95%
Ins Owner Change-3.63%
Market Cap285.84M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target7.33 (22.78%)
Short Float %1.86%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP117.63%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.7%
Min EPS beat(2)11.39%
Max EPS beat(2)20.01%
EPS beat(4)4
Avg EPS beat(4)16.43%
Min EPS beat(4)11.39%
Max EPS beat(4)20.01%
EPS beat(8)5
Avg EPS beat(8)-2.98%
EPS beat(12)9
Avg EPS beat(12)1.54%
EPS beat(16)13
Avg EPS beat(16)12.35%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.27%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.59%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.62%
Revenue beat(16)8
Avg Revenue beat(16)-0.87%
PT rev (1m)9.52%
PT rev (3m)21.05%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)6.58%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.6 | ||
| P/S | 1.18 | ||
| P/FCF | 10.7 | ||
| P/OCF | 9.37 | ||
| P/B | 3.02 | ||
| P/tB | 164.28 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)0.3
EY5.03%
EPS(NY)0.36
Fwd EY6.02%
FCF(TTM)0.56
FCFY9.34%
OCF(TTM)0.64
OCFY10.67%
SpS5.04
BVpS1.98
TBVpS0.04
PEG (NY)0.31
PEG (5Y)N/A
Graham Number3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROCE | 7.52% | ||
| ROIC | 4.68% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 16.29% | ||
| OM | 5.32% | ||
| PM (TTM) | 4.05% | ||
| GM | 42.24% | ||
| FCFM | 11.07% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
ROICexc(3y)6.35%
ROICexc(5y)7.4%
ROICexgc(3y)18.57%
ROICexgc(5y)26.58%
ROCE(3y)8.72%
ROCE(5y)9.53%
ROICexgc growth 3Y-51.07%
ROICexgc growth 5Y-13.92%
ROICexc growth 3Y-42.19%
ROICexc growth 5Y-13.71%
OM growth 3Y-38.37%
OM growth 5Y-14.34%
PM growth 3Y-40.99%
PM growth 5Y-1.58%
GM growth 3Y-0.08%
GM growth 5Y-1.49%
F-Score9
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 82.94% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 175.21% | ||
| Profit Quality | 273.39% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 | ||
| Altman-Z | 2.46 |
F-Score9
WACC8.47%
ROIC/WACC0.55
Cap/Depr(3y)55.54%
Cap/Depr(5y)45.84%
Cap/Sales(3y)1.17%
Cap/Sales(5y)0.97%
Profit Quality(3y)260.97%
Profit Quality(5y)513.35%
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%80%
EPS Next Y63.62%
EPS Next 2Y34.08%
EPS Next 3Y37.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%1.77%
Revenue Next Year-1.14%
Revenue Next 2Y1.22%
Revenue Next 3Y2.54%
Revenue Next 5Y3.92%
EBIT growth 1Y525.95%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year385.34%
EBIT Next 3Y87.5%
EBIT Next 5YN/A
FCF growth 1Y298.02%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y233%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%
INFORMATION SERVICES GROUP / III FAQ
What is the fundamental rating for III stock?
ChartMill assigns a fundamental rating of 5 / 10 to III.
Can you provide the valuation status for INFORMATION SERVICES GROUP?
ChartMill assigns a valuation rating of 6 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Fairly Valued.
How profitable is INFORMATION SERVICES GROUP (III) stock?
INFORMATION SERVICES GROUP (III) has a profitability rating of 5 / 10.
What is the valuation of INFORMATION SERVICES GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INFORMATION SERVICES GROUP (III) is 19.9 and the Price/Book (PB) ratio is 3.02.
Can you provide the dividend sustainability for III stock?
The dividend rating of INFORMATION SERVICES GROUP (III) is 4 / 10 and the dividend payout ratio is 117.63%.