INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.41 USD
+0.21 (+4.04%)
5.45 USD
+0.04 (+0.74%)
Taking everything into account, III scores 6 out of 10 in our fundamental rating. III was compared to 84 industry peers in the IT Services industry. While III has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on III. This makes III very considerable for value investing!
1. Profitability
1.1 Basic Checks
III had positive earnings in the past year.
III had a positive operating cash flow in the past year.
Each year in the past 5 years III has been profitable.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.58%, III is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
III has a Return On Equity of 10.32%. This is in the better half of the industry: III outperforms 65.48% of its industry peers.
III has a Return On Invested Capital (4.68%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for III is significantly below the industry average of 28.67%.
| 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
III has a Profit Margin of 4.05%. This is comparable to the rest of the industry: III outperforms 59.52% of its industry peers.
III's Profit Margin has declined in the last couple of years.
The Operating Margin of III (5.32%) 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 61.90% of its industry peers.
In the last couple of years the Gross Margin of III has remained more or less at the same level.
| 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
III has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
III has less shares outstanding than it did 1 year ago.
III has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, III has an improved debt to assets ratio.
2.2 Solvency
III has an Altman-Z score of 2.28. 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.
With a Altman-Z score value of 2.28, III perfoms like the industry average, outperforming 44.05% of the companies in the same industry.
The Debt to FCF ratio of III is 2.22, which is a good value as it means it would take III, 2.22 years of fcf income to pay off all of its debts.
III's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. III outperforms 69.05% of its industry peers.
III has a Debt/Equity ratio of 0.63. This is a neutral value indicating III is somewhat dependend on debt financing.
The Debt to Equity ratio of III (0.63) is comparable to the rest of the industry.
Although III does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.54
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
III has a Current ratio of 2.22. This is in the better half of the industry: III outperforms 66.67% 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.
Looking at the Quick ratio, with a value of 2.22, III is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
Looking at the last year, III shows a decrease in Revenue. The Revenue has decreased by -5.74% in the last year.
Measured over the past years, III shows a decrease in Revenue. The Revenue has been decreasing by -1.41% on average per year.
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
III is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.70% yearly.
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y53.52%
EPS Next 2Y33.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 18.03, which indicates a rather expensive current valuation of III.
Compared to the rest of the industry, the Price/Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 69.05% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, III is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of III.
Compared to the rest of the industry, the Price/Forward Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 76.19% of the companies listed in the same industry.
III is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, III is valued a bit cheaper than 61.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of III indicates a rather cheap valuation: III is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 16.15 |
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 33.70% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.46%, 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 2.01. III pays more dividend than 97.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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 2Y33.7%
EPS Next 3YN/A
5.41
+0.21 (+4.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change1.37%
Ins Owners15.88%
Ins Owner Change1.11%
Market Cap260.76M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target6.69 (23.66%)
Short Float %1.45%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)0%
PT rev (3m)11.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.08 | ||
| P/FCF | 9.76 | ||
| P/OCF | 8.55 | ||
| P/B | 2.75 | ||
| P/tB | 149.86 | ||
| EV/EBITDA | 16.15 |
EPS(TTM)0.3
EY5.55%
EPS(NY)0.36
Fwd EY6.61%
FCF(TTM)0.55
FCFY10.24%
OCF(TTM)0.63
OCFY11.7%
SpS5.01
BVpS1.96
TBVpS0.04
PEG (NY)0.34
PEG (5Y)N/A
Graham Number3.64
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 | 2.28 |
F-Score9
WACC8.67%
ROIC/WACC0.54
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 Y53.52%
EPS Next 2Y33.7%
EPS Next 3YN/A
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-1.79%
Revenue Next 2Y1.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y525.95%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year371.91%
EBIT Next 3YN/A
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 6 / 10 to III.
Can you provide the valuation status for INFORMATION SERVICES GROUP?
ChartMill assigns a valuation rating of 7 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Undervalued.
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 18.03 and the Price/Book (PB) ratio is 2.75.
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%.