5.72 USD
+0.1 (+1.78%)
5.72 USD
0 (0%)
III gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. III is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. III has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year III was profitable.
- 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
- Looking at the Return On Assets, with a value of 4.58%, III is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- III has a Return On Equity of 10.32%. This is in the better half of the industry: III outperforms 67.05% of its industry peers.
- III has a Return On Invested Capital of 4.68%. This is comparable to the rest of the industry: III outperforms 56.82% 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 29.06%.
| 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
- The Profit Margin of III (4.05%) is better than 61.36% of its industry peers.
- In the last couple of years the Profit Margin of III has declined.
- III has a Operating Margin (5.32%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of III has declined.
- The Gross Margin of III (42.24%) is better than 64.77% of its industry peers.
- 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
- III has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, III has less shares outstanding
- III has more shares outstanding than it did 5 years ago.
- III has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.37 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 2.37, III is in line with its industry, outperforming 46.59% of the companies in the same 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.
- The Debt to FCF ratio of III (2.22) is better than 67.05% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
- The Debt to Equity ratio of III (0.63) is comparable to the rest of the 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 | 2.37 |
ROIC/WACC0.52
WACC9.08%
2.3 Liquidity
- A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
- III has a better Current ratio (2.22) than 64.77% 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 65.91% 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.
- The Revenue has decreased by -5.74% in the past 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
- Based on estimates for the next years, III will show a very strong growth in Earnings Per Share. The EPS will grow by 37.07% on average per year.
- The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y63.62%
EPS Next 2Y34.08%
EPS Next 3Y37.07%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y1.22%
Revenue Next 3Y2.54%
Revenue Next 5Y3.92%
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 19.07, which indicates a rather expensive current valuation of III.
- Compared to the rest of the industry, the Price/Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 68.18% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. III is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.91, which 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 71.59% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. III is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
- III's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. III is cheaper than 64.77% of the companies in the same industry.
- III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 17.21 |
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)0.3
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y37.07%
5. Dividend
5.1 Amount
- III has a Yearly Dividend Yield of 3.17%.
- Compared to an average industry Dividend Yield of 0.44, III pays a better dividend. On top of this III pays more dividend than 97.73% of the companies listed in the same industry.
- III's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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 2Y34.08%
EPS Next 3Y37.07%
INFORMATION SERVICES GROUP / III FAQ
What is the fundamental rating for III stock?
ChartMill assigns a fundamental rating of 5 / 10 to III.
What is the valuation status of INFORMATION SERVICES GROUP (III) stock?
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 are the PE and PB ratios of INFORMATION SERVICES GROUP (III) stock?
The Price/Earnings (PE) ratio for INFORMATION SERVICES GROUP (III) is 19.07 and the Price/Book (PB) ratio is 2.89.
What is the earnings growth outlook for INFORMATION SERVICES GROUP?
The Earnings per Share (EPS) of INFORMATION SERVICES GROUP (III) is expected to grow by 63.62% in the next year.