INFORMATION SERVICES GROUP (III) Fundamental Analysis & Valuation
NASDAQ:III • US45675Y1047
Current stock price
4.07 USD
+0.13 (+3.3%)
At close:
4.1 USD
+0.03 (+0.74%)
Pre-Market:
This III fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. III Profitability Analysis
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.
- Each year in the past 5 years III had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.43%, III is doing good in the industry, outperforming 67.05% of the companies in the same industry.
- The Return On Equity of III (9.87%) is better than 68.18% of its industry peers.
- III's Return On Invested Capital of 6.18% is fine compared to the rest of the industry. III outperforms 60.23% of its industry peers.
- III had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 11.10%.
- The last Return On Invested Capital (6.18%) for III is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.87% | ||
| ROIC | 6.18% |
ROA(3y)2.77%
ROA(5y)4.59%
ROE(3y)6.28%
ROE(5y)10.84%
ROIC(3y)4.19%
ROIC(5y)6.16%
1.3 Margins
- III has a Profit Margin of 3.82%. This is comparable to the rest of the industry: III outperforms 59.09% of its industry peers.
- III's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 7.27%, III is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- III's Operating Margin has improved in the last couple of years.
- III has a better Gross Margin (43.07%) than 65.91% of its industry peers.
- In the last couple of years the Gross Margin of III has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 3.82% | ||
| GM | 43.07% |
OM growth 3Y-10.97%
OM growth 5Y9.32%
PM growth 3Y-17.83%
PM growth 5Y27.7%
GM growth 3Y1.88%
GM growth 5Y1.56%
2. III Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so III is destroying value.
- III has less shares outstanding than it did 1 year ago.
- III has less shares outstanding than it did 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 2.14 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.14, III is in line with its industry, outperforming 43.18% of the companies in the same industry.
- III has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as III would need 2.37 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.37, III is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
- III has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: III outperforms 44.32% of its industry peers.
- Although III's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 2.37 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.69
WACC8.89%
2.3 Liquidity
- III has a Current Ratio of 2.34. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.34, III is doing good in the industry, outperforming 65.91% of the companies in the same industry.
- A Quick Ratio of 2.34 indicates that III has no problem at all paying its short term obligations.
- III has a better Quick ratio (2.34) than 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 |
3. III Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 60.00% over the past year.
- Measured over the past 5 years, III shows a small growth in Earnings Per Share. The EPS has been growing by 2.71% on average per year.
- III shows a decrease in Revenue. In the last year, the revenue decreased by -1.16%.
- The Revenue has been decreasing by -0.35% on average over the past years.
EPS 1Y (TTM)60%
EPS 3Y-14.94%
EPS 5Y2.71%
EPS Q2Q%33.33%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-5.1%
Revenue growth 5Y-0.35%
Sales Q2Q%5.95%
3.2 Future
- The Earnings Per Share is expected to grow by 26.87% on average over the next years. This is a very strong growth
- III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y11.73%
EPS Next 2Y26.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.87%
Revenue Next 2Y3.6%
Revenue Next 3Y4.81%
Revenue Next 5Y5.52%
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. III Valuation Analysis
4.1 Price/Earnings Ratio
- III is valuated correctly with a Price/Earnings ratio of 12.72.
- Based on the Price/Earnings ratio, III is valued a bit cheaper than 71.59% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.91. III is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.38 indicates a reasonable 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 71.59% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, III is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
- III's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. III is cheaper than 71.59% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, III is valued cheaply inside the industry as 89.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of III may justify a higher PE ratio.
- A more expensive valuation may be justified as III's earnings are expected to grow with 26.87% in the coming years.
PEG (NY)1.08
PEG (5Y)4.7
EPS Next 2Y26.87%
EPS Next 3YN/A
5. III Dividend Analysis
5.1 Amount
- III has a Yearly Dividend Yield of 4.79%, which is a nice return.
- In the last 3 months the price of III has falen by -31.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- III's Dividend Yield is rather good when compared to the industry average which is at 1.18. III pays more dividend than 96.59% of the companies in the same industry.
- III's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
- The dividend of III is nicely growing with an annual growth rate of 6.33%!
- 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)6.33%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 98.31% of the earnings are spent on dividend by III. This is not a sustainable payout ratio.
- III's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.31%
EPS Next 2Y26.87%
EPS Next 3YN/A
III Fundamentals: All Metrics, Ratios and Statistics
4.07
+0.13 (+3.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)03-05 2026-03-05/amc
Earnings (Next)04-16 2026-04-16
Inst Owners70.02%
Inst Owner Change0%
Ins Owners15.1%
Ins Owner Change-0.02%
Market Cap194.02M
Revenue(TTM)244.72M
Net Income(TTM)9.34M
Analysts85.71
Price Target6.95 (70.76%)
Short Float %2%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend0.19
Dividend Growth(5Y)6.33%
DP98.31%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-20 2026-03-20 (0.045)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.8%
Min EPS beat(2)4.22%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)12.78%
Min EPS beat(4)4.22%
Max EPS beat(4)20.01%
EPS beat(8)6
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)1.1%
EPS beat(16)13
Avg EPS beat(16)11.13%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.27%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)1.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.71%
Revenue beat(16)7
Avg Revenue beat(16)-1.02%
PT rev (1m)-5.22%
PT rev (3m)-5.22%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.79 | ||
| P/FCF | 7.76 | ||
| P/OCF | 6.69 | ||
| P/B | 2.05 | ||
| P/tB | 97.2 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)0.32
EY7.86%
EPS(NY)0.36
Fwd EY8.78%
FCF(TTM)0.52
FCFY12.88%
OCF(TTM)0.61
OCFY14.95%
SpS5.13
BVpS1.99
TBVpS0.04
PEG (NY)1.08
PEG (5Y)4.7
Graham Number3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.87% | ||
| ROCE | 10.42% | ||
| ROIC | 6.18% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 21.31% | ||
| OM | 7.27% | ||
| PM (TTM) | 3.82% | ||
| GM | 43.07% | ||
| FCFM | 10.21% |
ROA(3y)2.77%
ROA(5y)4.59%
ROE(3y)6.28%
ROE(5y)10.84%
ROIC(3y)4.19%
ROIC(5y)6.16%
ROICexc(3y)4.9%
ROICexc(5y)7.58%
ROICexgc(3y)13.52%
ROICexgc(5y)26.04%
ROCE(3y)7.07%
ROCE(5y)10.38%
ROICexgc growth 3Y-14.22%
ROICexgc growth 5Y3.86%
ROICexc growth 3Y-11.89%
ROICexc growth 5Y9.38%
OM growth 3Y-10.97%
OM growth 5Y9.32%
PM growth 3Y-17.83%
PM growth 5Y27.7%
GM growth 3Y1.88%
GM growth 5Y1.56%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 88.63% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 129.9% | ||
| Profit Quality | 267.52% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 2.14 |
F-Score7
WACC8.89%
ROIC/WACC0.69
Cap/Depr(3y)63.85%
Cap/Depr(5y)59.75%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.2%
Profit Quality(3y)337.06%
Profit Quality(5y)261.21%
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3Y-14.94%
EPS 5Y2.71%
EPS Q2Q%33.33%
EPS Next Y11.73%
EPS Next 2Y26.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-5.1%
Revenue growth 5Y-0.35%
Sales Q2Q%5.95%
Revenue Next Year2.87%
Revenue Next 2Y3.6%
Revenue Next 3Y4.81%
Revenue Next 5Y5.52%
EBIT growth 1Y209.1%
EBIT growth 3Y-15.5%
EBIT growth 5Y8.94%
EBIT Next Year91.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.69%
FCF growth 3Y47.86%
FCF growth 5Y-10.2%
OCF growth 1Y46.04%
OCF growth 3Y37.54%
OCF growth 5Y-7.98%
INFORMATION SERVICES GROUP / III Fundamental Analysis FAQ
What is the fundamental rating for III stock?
ChartMill assigns a fundamental rating of 7 / 10 to III.
What is the valuation status for III stock?
ChartMill assigns a valuation rating of 7 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Undervalued.
Can you provide the profitability details for INFORMATION SERVICES GROUP?
INFORMATION SERVICES GROUP (III) has a profitability rating of 7 / 10.
How financially healthy is INFORMATION SERVICES GROUP?
The financial health rating of INFORMATION SERVICES GROUP (III) is 7 / 10.
How sustainable is the dividend of INFORMATION SERVICES GROUP (III) stock?
The dividend rating of INFORMATION SERVICES GROUP (III) is 7 / 10 and the dividend payout ratio is 98.31%.