5.97 USD
+0.2 (+3.47%)
5.91 USD
-0.06 (-1.01%)
We assign a fundamental rating of 5 out of 10 to III. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
III had positive earnings in the past year.
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 better Return On Assets (4.58%) than 64.71% of its industry peers.
With a decent Return On Equity value of 10.32%, III is doing good in the industry, outperforming 65.88% of the companies in the same industry.
III has a Return On Invested Capital (4.68%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for III is significantly below the industry average of 29.77%.
| 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 in the better half of the industry: III outperforms 61.18% of its industry peers.
III's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.32%, III is in line with its industry, outperforming 56.47% of the companies in the same industry.
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 62.35% of the companies in the same industry.
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
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.
The debt/assets ratio for III has been reduced compared to a year ago.
2.2 Solvency
III has an Altman-Z score of 2.41. 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 (2.41) which is comparable to the rest of the 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 has a Debt to FCF ratio of 2.22. This is in the better half of the industry: III outperforms 65.88% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
III's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. III outperforms 41.18% of its industry peers.
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 | 2.41 |
ROIC/WACC0.55
WACC8.47%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
The Current ratio of III (2.22) is better than 65.88% of its industry peers.
A Quick Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
III has a better Quick ratio (2.22) than 67.06% of its industry peers.
| 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.
Measured over the past years, III shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.16% on average per year.
III shows a decrease in Revenue. In the last year, the revenue decreased by -5.74%.
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 37.07% yearly.
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y53.52%
EPS Next 2Y33.7%
EPS Next 3Y37.07%
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.47%
Revenue Next 3Y2.54%
Revenue Next 5Y3.92%
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.
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
A Price/Earnings ratio of 19.90 indicates a rather expensive valuation of III.
Based on the Price/Earnings ratio, III is valued a bit cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (26.46), we can say III is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.70 indicates a correct valuation of III.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 70.59% of the companies in the same industry.
III is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of III is on the same level as its industry peers.
III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 89.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 17.62 |
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 37.07% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3Y37.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, III has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, III pays a better dividend. On top of this III pays more dividend than 97.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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 3Y37.07%
5.97
+0.2 (+3.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners67.43%
Inst Owner Change2.08%
Ins Owners14.95%
Ins Owner Change-2.65%
Market Cap285.84M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target7.33 (22.78%)
Short Float %1.86%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)9.52%
PT rev (3m)22.34%
EPS NQ rev (1m)5.56%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.7 | ||
| P/S | 1.18 | ||
| P/FCF | 10.7 | ||
| P/OCF | 9.37 | ||
| P/B | 3.02 | ||
| P/tB | 164.28 | ||
| EV/EBITDA | 17.62 |
EPS(TTM)0.3
EY5.03%
EPS(NY)0.36
Fwd EY5.99%
FCF(TTM)0.56
FCFY9.34%
OCF(TTM)0.64
OCFY10.67%
SpS5.04
BVpS1.98
TBVpS0.04
PEG (NY)0.37
PEG (5Y)N/A
Graham Number3.65
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 | 2.41 |
F-Score9
WACC8.47%
ROIC/WACC0.55
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 3Y37.07%
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 3Y2.54%
Revenue Next 5Y3.92%
EBIT growth 1Y525.95%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year371.91%
EBIT Next 3Y87.5%
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 5 / 10 to III.
Can you provide the valuation status for INFORMATION SERVICES GROUP?
ChartMill assigns a valuation rating of 6 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Fairly Valued.
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 19.9 and the Price/Book (PB) ratio is 3.02.
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%.