5.92 USD
-0.01 (-0.17%)
5.9152 USD
0 (-0.08%)
Taking everything into account, III scores 5 out of 10 in our fundamental rating. III was compared to 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 is not valued too expensively and it also shows a decent growth rate.
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.
III had positive earnings in each of the past 5 years.
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 65.91% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 4.68%, III is in line with its industry, outperforming 56.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for III is significantly below the industry average of 29.60%.
| 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 in line with its industry peers.
III's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 42.24%, III is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
III has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, III has more shares outstanding
The debt/assets ratio for III has been reduced compared to a year ago.
2.2 Solvency
III has an Altman-Z score of 2.45. 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 of 2.45. This is comparable to the rest of the industry: III outperforms 47.73% of its industry peers.
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's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. III outperforms 68.18% of its industry peers.
III has a Debt/Equity ratio of 0.63. This is a neutral value indicating 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 40.91% of its industry peers.
Although III does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 | 2.22 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.53
WACC8.89%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.22, III is doing good in the industry, outperforming 64.77% of the companies in the same industry.
A Quick Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
The Quick ratio of III (2.22) is better than 65.91% 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.
III shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.16% yearly.
III shows a decrease in Revenue. In the last year, the revenue decreased by -5.74%.
The Revenue has been decreasing by -1.41% on average over the past years.
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 37.07% 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 3.92% on average per year.
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
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
With a Price/Earnings ratio of 19.73, III is valued on the expensive side.
69.32% of the companies in the same industry are more expensive than III, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. III is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.46, which 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 70.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, III is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
60.23% of the companies in the same industry are more expensive than III, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of III indicates a rather cheap valuation: III is cheaper than 89.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | 18.06 |
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)0.31
PEG (5Y)N/A
EPS Next 2Y34.08%
EPS Next 3Y37.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, III has a reasonable but not impressive dividend return.
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.
Compared to an average S&P500 Dividend Yield of 1.88, III pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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%
5.92
-0.01 (-0.17%)
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-3.13%
Market Cap283.45M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price TargetN/A
Short Float %1.27%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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)21.05%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)5.56%
EPS NY rev (1m)6.58%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.17 | ||
| P/FCF | 10.61 | ||
| P/OCF | 9.29 | ||
| P/B | 2.99 | ||
| P/tB | 162.9 | ||
| EV/EBITDA | 18.06 |
EPS(TTM)0.3
EY5.07%
EPS(NY)0.36
Fwd EY6.07%
FCF(TTM)0.56
FCFY9.42%
OCF(TTM)0.64
OCFY10.76%
SpS5.04
BVpS1.98
TBVpS0.04
PEG (NY)0.31
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 | 2.45 |
F-Score9
WACC8.89%
ROIC/WACC0.53
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 Y63.62%
EPS Next 2Y34.08%
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-1.14%
Revenue Next 2Y1.22%
Revenue Next 3Y2.54%
Revenue Next 5Y3.92%
EBIT growth 1Y525.95%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year385.34%
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 19.73 and the Price/Book (PB) ratio is 2.99.
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%.