INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
NASDAQ:III - Nasdaq - US45675Y1047 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to III. III was compared to 81 industry peers in the IT Services industry. Both the profitability and the financial health of III get a neutral evaluation. Nothing too spectacular is happening here. 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
In the past year III was profitable.
III had a positive operating cash flow in the past year.
In the past 5 years III has always been profitable.
Each year in the past 5 years III had a positive operating cash flow.
1.2 Ratios
III's Return On Assets of 1.39% is in line compared to the rest of the industry. III outperforms 51.85% of its industry peers.
III has a Return On Equity (2.95%) which is comparable to the rest of the industry.
III has a Return On Invested Capital of 2.16%. This is comparable to the rest of the industry: III outperforms 50.62% of its industry peers.
III had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.95% | ||
| ROIC | 2.16% |
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 (1.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of III has declined.
With a Operating Margin value of 2.33%, III perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
III's Operating Margin has declined in the last couple of years.
III has a Gross Margin of 39.29%. This is in the better half of the industry: III outperforms 60.49% of its industry peers.
III's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.33% | ||
| PM (TTM) | 1.15% | ||
| GM | 39.29% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so III is destroying value.
The number of shares outstanding for III has been reduced compared to 1 year ago.
The number of shares outstanding for III has been increased compared to 5 years ago.
III has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.88 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of III (1.88) is comparable to the rest of the industry.
III has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as III would need 3.47 years to pay back of all of its debts.
III's Debt to FCF ratio of 3.47 is fine compared to the rest of the industry. III outperforms 60.49% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that III is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, III perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.24
WACC8.92%
2.3 Liquidity
III has a Current Ratio of 2.38. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
III has a Current ratio of 2.38. This is in the better half of the industry: III outperforms 74.07% of its industry peers.
A Quick Ratio of 2.38 indicates that III has no problem at all paying its short term obligations.
The Quick ratio of III (2.38) is better than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The earnings per share for III have decreased strongly by -50.00% in the last year.
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.
Looking at the last year, III shows a very negative growth in Revenue. The Revenue has decreased by -14.94% in the last year.
III shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.41% yearly.
EPS 1Y (TTM)-50%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
Revenue 1Y (TTM)-14.94%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-12.71%
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 33.58% on average per year.
Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y33.32%
EPS Next 2Y33.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.85%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
III is valuated rather expensively with a Price/Earnings ratio of 18.15.
Compared to the rest of the industry, the Price/Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 65.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (27.63), we can say III is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.61, the valuation of III can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of III indicates a rather cheap valuation: III is cheaper than 80.25% of the companies listed in the same industry.
III's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
III's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, III is valued cheaper than 91.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 17.81 |
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.
III's earnings are expected to grow with 33.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y33.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.84%, III is a good candidate for dividend investing.
III's Dividend Yield is rather good when compared to the industry average which is at 3.24. III pays more dividend than 97.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, III pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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
330.86% of the earnings are spent on dividend by III. This is not a sustainable payout ratio.
DP330.86%
EPS Next 2Y33.58%
EPS Next 3YN/A
NASDAQ:III (4/22/2025, 2:27:48 PM)
3.63
+0.08 (+2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners59.8%
Inst Owner Change-0.02%
Ins Owners16.09%
Ins Owner Change0.56%
Market Cap175.18M
Analysts85.71
Price Target5.42 (49.31%)
Short Float %0.48%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP330.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.61%
Min EPS beat(2)-11.6%
Max EPS beat(2)18.81%
EPS beat(4)2
Avg EPS beat(4)-7.93%
Min EPS beat(4)-82.93%
Max EPS beat(4)44.01%
EPS beat(8)5
Avg EPS beat(8)-4.75%
EPS beat(12)9
Avg EPS beat(12)10.58%
EPS beat(16)13
Avg EPS beat(16)21.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)0.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.58%
Revenue beat(16)8
Avg Revenue beat(16)-0.1%
PT rev (1m)2.41%
PT rev (3m)-2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-4.35%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 13.61 | ||
| P/S | 0.71 | ||
| P/FCF | 10.28 | ||
| P/OCF | 8.82 | ||
| P/B | 1.82 | ||
| P/tB | 32.24 | ||
| EV/EBITDA | 17.81 |
EPS(TTM)0.2
EY5.51%
EPS(NY)0.27
Fwd EY7.35%
FCF(TTM)0.35
FCFY9.72%
OCF(TTM)0.41
OCFY11.34%
SpS5.13
BVpS2
TBVpS0.11
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.95% | ||
| ROCE | 3.47% | ||
| ROIC | 2.16% | ||
| ROICexc | 2.51% | ||
| ROICexgc | 6.87% | ||
| OM | 2.33% | ||
| PM (TTM) | 1.15% | ||
| GM | 39.29% | ||
| FCFM | 6.88% |
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%
ROICexcg growth 3Y-51.07%
ROICexcg 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-Score7
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 48.06% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 1 | ||
| Cash Conversion | 170.59% | ||
| Profit Quality | 600.04% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 1.88 |
F-Score7
WACC8.92%
ROIC/WACC0.24
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%0%
EPS Next Y33.32%
EPS Next 2Y33.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.94%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-12.71%
Revenue Next Year-2.85%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-60.58%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year321.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y92.73%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y61.87%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%