INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.25 USD
0 (0%)
5.25 USD
0 (0%)
Taking everything into account, III scores 6 out of 10 in our fundamental rating. III was compared to 85 industry peers in the IT Services industry. III has an excellent financial health rating, but there are some minor concerns on its profitability. III scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, III could be worth investigating further 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.
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
The Return On Assets of III (4.58%) is better than 65.48% of its industry peers.
III's Return On Equity of 10.32% is fine compared to the rest of the industry. III outperforms 65.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.68%, III is in line with its industry, outperforming 54.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for III is significantly below the industry average of 29.74%.
| 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 better Profit Margin (4.05%) than 60.71% of its industry peers.
In the last couple of years the Profit Margin of III has declined.
III's Operating Margin of 5.32% is in line compared to the rest of the industry. III outperforms 54.76% of its industry peers.
III's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.24%, III is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
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.
The number of shares outstanding for III has been reduced compared to 1 year ago.
III has more shares outstanding than it did 5 years ago.
III has a better debt/assets ratio than last year.
2.2 Solvency
III has an Altman-Z score of 2.29. 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 (2.29) 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.
Looking at the Debt to FCF ratio, with a value of 2.22, III is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
III has a Debt/Equity ratio of 0.63. This is a neutral value indicating III is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, III perfoms like the industry average, outperforming 40.48% of the companies in the same 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 | 2.29 |
ROIC/WACC0.54
WACC8.65%
2.3 Liquidity
III has a Current Ratio of 2.22. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of III (2.22) is better than 64.29% 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.
III's Quick ratio of 2.22 is fine compared to the rest of the industry. III outperforms 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
III shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.16% yearly.
III shows a decrease in Revenue. In the last year, the revenue decreased by -5.74%.
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 33.70% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.47% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.50, which indicates a rather expensive current valuation of III.
Based on the Price/Earnings ratio, III is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (25.89), we can say III is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.68 indicates a correct valuation of III.
76.19% of the companies in the same industry are more expensive than III, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of III to the average of the S&P500 Index (34.59), we can say III is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
60.71% of the companies in the same industry are more expensive than III, based on the Enterprise Value to EBITDA ratio.
III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 16.29 |
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.
III's earnings are expected to grow with 33.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, 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 2.00. III pays more dividend than 97.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
117.63% of the earnings are spent on dividend by III. This is not a sustainable payout ratio.
DP117.63%
EPS Next 2Y33.7%
EPS Next 3YN/A
5.25
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change4.11%
Ins Owners15.88%
Ins Owner Change-3.47%
Market Cap253.05M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target6.69 (27.43%)
Short Float %1.45%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)2.78%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 14.68 | ||
| P/S | 1.05 | ||
| P/FCF | 9.48 | ||
| P/OCF | 8.3 | ||
| P/B | 2.67 | ||
| P/tB | 145.43 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.3
EY5.71%
EPS(NY)0.36
Fwd EY6.81%
FCF(TTM)0.55
FCFY10.55%
OCF(TTM)0.63
OCFY12.05%
SpS5.01
BVpS1.96
TBVpS0.04
PEG (NY)0.33
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 | 2.29 |
F-Score9
WACC8.65%
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 17.5 and the Price/Book (PB) ratio is 2.67.
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%.