INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.25 USD
0 (0%)
5.25 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to III. 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. III may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, III could be worth investigating further for value investing!.
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.
Each year in the past 5 years III has 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 65.48% of its industry peers.
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's Return On Invested Capital of 4.68% is in line compared to the rest of the industry. III outperforms 54.76% of 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 (4.05%) which is comparable to the rest of the industry.
III's Profit Margin has declined in the last couple of years.
III has a Operating Margin (5.32%) which is in line with its industry peers.
In the last couple of years the Operating Margin of III has declined.
III has a better Gross Margin (42.24%) than 61.90% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 2.29 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
III has a Altman-Z score (2.29) which is in line with its industry peers.
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.
III's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. III outperforms 67.86% 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 perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
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 | 2.29 |
ROIC/WACC0.54
WACC8.62%
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.
III's Current ratio of 2.22 is fine compared to the rest 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.
The Quick ratio of III (2.22) is better than 66.67% 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.
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
The Earnings Per Share is expected to grow by 33.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
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 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.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, III is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
III's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. III is cheaper than 60.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, III is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
The 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
III has a Yearly Dividend Yield of 3.46%.
Compared to an average industry Dividend Yield of 2.02, III pays a better dividend. On top of this III pays more dividend than 97.62% of the companies listed in the same industry.
III's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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
5.25
0 (0%)
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 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 | 3.46% |
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 | 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
WACC8.62%
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%.