INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
NASDAQ:III - Nasdaq - US45675Y1047 - Common Stock - Currency: USD
Taking everything into account, III scores 4 out of 10 in our fundamental rating. III was compared to 82 industry peers in the IT Services industry. III has a medium profitability rating, but doesn't score so well on its financial health evaluation. III has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
III has a Return On Assets (-1.35%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -3.18%, III is in line with its industry, outperforming 46.15% of the companies in the same industry.
III has a Return On Invested Capital (0.83%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for III is in line with the industry average of 10.27%.
The last Return On Invested Capital (0.83%) for III is well below the 3 year average (9.13%), which needs to be investigated, but indicates that III had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -3.18% | ||
| ROIC | 0.83% |
ROA(3y)5.71%
ROA(5y)3.96%
ROE(3y)13.8%
ROE(5y)9.58%
ROIC(3y)9.13%
ROIC(5y)7.45%
1.3 Margins
In the last couple of years the Profit Margin of III has remained more or less at the same level.
III has a Operating Margin (0.80%) which is comparable to the rest of the industry.
III's Operating Margin has improved in the last couple of years.
III has a Gross Margin of 38.53%. This is in the better half of the industry: III outperforms 60.26% of its industry peers.
In the last couple of years the Gross Margin of III has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 38.53% |
OM growth 3Y2.77%
OM growth 5Y1.88%
PM growth 3Y23.44%
PM growth 5Y0.46%
GM growth 3Y-1.13%
GM growth 5Y-1.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so III is destroying value.
III has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.46, we must say that III is in the distress zone and has some risk of bankruptcy.
III's Altman-Z score of 1.46 is on the low side compared to the rest of the industry. III is outperformed by 65.38% of its industry peers.
III has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as III would need 3.51 years to pay back of all of its debts.
III has a Debt to FCF ratio (3.51) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.69 indicates that III is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, III is not doing good in the industry: 60.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.08
WACC10.63%
2.3 Liquidity
A Current Ratio of 1.97 indicates that III should not have too much problems paying its short term obligations.
The Current ratio of III (1.97) is better than 64.10% of its industry peers.
III has a Quick Ratio of 1.97. This is a normal value and indicates that III is financially healthy and should not expect problems in meeting its short term obligations.
III has a better Quick ratio (1.97) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The earnings per share for III have decreased strongly by -57.45% in the last year.
The Earnings Per Share has been growing slightly by 2.13% on average over the past years.
Looking at the last year, III shows a very negative growth in Revenue. The Revenue has decreased by -14.39% in the last year.
III shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.08% yearly.
EPS 1Y (TTM)-57.45%
EPS 3Y12.62%
EPS 5Y2.13%
EPS Q2Q%-54.55%
Revenue 1Y (TTM)-14.39%
Revenue growth 3Y5.33%
Revenue growth 5Y1.08%
Sales Q2Q%-14.62%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
The Revenue is expected to decrease by -4.06% on average over the next years.
EPS Next Y-52.02%
EPS Next 2Y-17.74%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue Next Year-15.78%
Revenue Next 2Y-8.75%
Revenue Next 3Y-4.06%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.25 indicates a correct valuation of III.
Based on the Price/Earnings ratio, III is valued cheaper than 80.77% of the companies in the same industry.
III's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.53.
The Price/Forward Earnings ratio is 11.27, which indicates a very decent valuation of III.
Compared to the rest of the industry, the Price/Forward Earnings ratio of III indicates a rather cheap valuation: III is cheaper than 88.46% of the companies listed in the same industry.
III is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 11.27 |
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 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.93 | ||
| EV/EBITDA | 24.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.16
EPS Next 2Y-17.74%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, III is a good candidate for dividend investing.
III's Dividend Yield is rather good when compared to the industry average which is at 2.94. III pays more dividend than 97.44% of the companies in the same industry.
III's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
5.2 History
III has been paying a dividend for less than 5 years, so it still needs to build a 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
The earnings of III are negative and hence is the payout ratio. III will probably not be able to sustain this dividend level.
DP-228.63%
EPS Next 2Y-17.74%
EPS Next 3Y4.35%
3.05
-0.01 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners59.8%
Inst Owner Change-96.4%
Ins Owners16.09%
Ins Owner Change-0.21%
Market Cap149.66M
Analysts85.71
Price Target5.29 (73.44%)
Short Float %0.43%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend0.18
Dividend Growth(5Y)N/A
DP-228.63%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.21%
Min EPS beat(2)-11.6%
Max EPS beat(2)44.01%
EPS beat(4)1
Avg EPS beat(4)-22.4%
Min EPS beat(4)-82.93%
Max EPS beat(4)44.01%
EPS beat(8)5
Avg EPS beat(8)-5.91%
EPS beat(12)9
Avg EPS beat(12)10.99%
EPS beat(16)13
Avg EPS beat(16)23.91%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)0.28%
Revenue beat(4)1
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.28%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)9
Avg Revenue beat(16)1.01%
PT rev (1m)-4.6%
PT rev (3m)-4.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 11.27 | ||
| P/S | 0.58 | ||
| P/FCF | 7.93 | ||
| P/OCF | 6.51 | ||
| P/B | 1.55 | ||
| P/tB | 29.48 | ||
| EV/EBITDA | 24.77 |
EPS(TTM)0.2
EY6.56%
EPS(NY)0.27
Fwd EY8.87%
FCF(TTM)0.38
FCFY12.61%
OCF(TTM)0.47
OCFY15.35%
SpS5.22
BVpS1.97
TBVpS0.1
PEG (NY)N/A
PEG (5Y)7.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -3.18% | ||
| ROCE | 1.15% | ||
| ROIC | 0.83% | ||
| ROICexc | 0.88% | ||
| ROICexgc | 1.92% | ||
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 38.53% | ||
| FCFM | 7.37% |
ROA(3y)5.71%
ROA(5y)3.96%
ROE(3y)13.8%
ROE(5y)9.58%
ROIC(3y)9.13%
ROIC(5y)7.45%
ROICexc(3y)11.37%
ROICexc(5y)9.19%
ROICexgc(3y)41.43%
ROICexgc(5y)32.5%
ROCE(3y)12.68%
ROCE(5y)10.34%
ROICexcg growth 3Y-10.32%
ROICexcg growth 5Y-3.52%
ROICexc growth 3Y1.03%
ROICexc growth 5Y0.19%
OM growth 3Y2.77%
OM growth 5Y1.88%
PM growth 3Y23.44%
PM growth 5Y0.46%
GM growth 3Y-1.13%
GM growth 5Y-1.7%
F-Score4
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 7.93 | ||
| Cap/Depr | 65.1% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 275.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 1.46 |
F-Score4
WACC10.63%
ROIC/WACC0.08
Cap/Depr(3y)54.02%
Cap/Depr(5y)41.95%
Cap/Sales(3y)1.07%
Cap/Sales(5y)0.88%
Profit Quality(3y)146.16%
Profit Quality(5y)505.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-57.45%
EPS 3Y12.62%
EPS 5Y2.13%
EPS Q2Q%-54.55%
EPS Next Y-52.02%
EPS Next 2Y-17.74%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.39%
Revenue growth 3Y5.33%
Revenue growth 5Y1.08%
Sales Q2Q%-14.62%
Revenue Next Year-15.78%
Revenue Next 2Y-8.75%
Revenue Next 3Y-4.06%
Revenue Next 5YN/A
EBIT growth 1Y-91.9%
EBIT growth 3Y8.24%
EBIT growth 5Y2.98%
EBIT Next Year1.49%
EBIT Next 3Y16.53%
EBIT Next 5YN/A
FCF growth 1Y417.21%
FCF growth 3Y-40.89%
FCF growth 5Y-10.19%
OCF growth 1Y224.49%
OCF growth 3Y-34.65%
OCF growth 5Y-8.5%