INFORMATION SERVICES GROUP (III)
US45675Y1047 - Common Stock
We assign a fundamental rating of 4 out of 10 to III. III was compared to 82 industry peers in the IT Services industry. There are concerns on the financial health of III while its profitability can be described as average. III is valued correctly, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of -1.35%, III is in line with its industry, outperforming 44.44% of the companies in the same industry.
With a Return On Equity value of -3.18%, III perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
With a Return On Invested Capital value of 0.83%, III perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for III is in line with the industry average of 9.36%.
The last Return On Invested Capital (0.83%) for III is well below the 3 year average (9.13%), which needs to be investigated, but indicates that III had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -3.18% | ||
| ROIC | 0.83% |
ROA(3y)5.71%
ROA(5y)3.96%
ROE(3y)13.8%
ROE(5y)9.58%
ROIC(3y)9.13%
ROIC(5y)7.45%
1.3 Margins
III's Profit Margin has been stable in the last couple of years.
III's Operating Margin of 0.80% is in line compared to the rest of the industry. III outperforms 45.68% of its industry peers.
In the last couple of years the Operating Margin of III has grown nicely.
With a decent Gross Margin value of 38.53%, III is doing good in the industry, outperforming 60.49% of the companies in the same industry.
III's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 38.53% |
OM growth 3Y2.77%
OM growth 5Y1.88%
PM growth 3Y23.44%
PM growth 5Y0.46%
GM growth 3Y-1.13%
GM growth 5Y-1.7%
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.
The number of shares outstanding for III has been increased compared to 1 year ago.
III has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, III has an improved debt to assets ratio.
2.2 Solvency
III has an Altman-Z score of 1.52. This is a bad value and indicates that III is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.52, III is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of III is 3.51, which is a good value as it means it would take III, 3.51 years of fcf income to pay off all of its debts.
III has a Debt to FCF ratio of 3.51. This is comparable to the rest of the industry: III outperforms 58.02% of its industry peers.
III has a Debt/Equity ratio of 0.69. This is a neutral value indicating III is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, III is doing worse than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.08
WACC10.76%
2.3 Liquidity
III has a Current Ratio of 1.97. This is a normal value and indicates that III is financially healthy and should not expect problems in meeting its short term obligations.
III has a Current ratio of 1.97. This is in the better half of the industry: III outperforms 64.20% of its industry peers.
III has a Quick Ratio of 1.97. This is a normal value and indicates that III is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.97, III is doing good in the industry, outperforming 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The earnings per share for III have decreased strongly by -57.45% in the last year.
III shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.13% yearly.
Looking at the last year, III shows a very negative growth in Revenue. The Revenue has decreased by -14.39% in the last year.
Measured over the past years, III shows a small growth in Revenue. The Revenue has been growing by 1.08% on average per year.
EPS 1Y (TTM)-57.45%
EPS 3Y12.62%
EPS 5Y2.13%
EPS Q2Q%-54.55%
Revenue 1Y (TTM)-14.39%
Revenue growth 3Y5.33%
Revenue growth 5Y1.08%
Sales Q2Q%-14.62%
3.2 Future
Based on estimates for the next years, III will show a small growth in Earnings Per Share. The EPS will grow by 4.35% on average per year.
III is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.06% yearly.
EPS Next Y-52.02%
EPS Next 2Y-16.52%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue Next Year-15.78%
Revenue Next 2Y-8.38%
Revenue Next 3Y-4.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.50, the valuation of III can be described as correct.
75.31% of the companies in the same industry are more expensive than III, based on the Price/Earnings ratio.
III is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of III.
III's Price/Forward Earnings ratio is rather cheap when compared to the industry. III is cheaper than 87.65% of the companies in the same industry.
III's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
III's Enterprise Value to EBITDA is on the same level as the industry average.
93.83% of the companies in the same industry are more expensive than III, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 26.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.75
EPS Next 2Y-16.52%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 5.54%, which is a nice return.
III's Dividend Yield is rather good when compared to the industry average which is at 2.84. III pays more dividend than 97.53% of the companies in the same industry.
III's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
III has paid a dividend for less than 5 years, so there is no long track record yet.
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
The earnings of III are negative and hence is the payout ratio. III will probably not be able to sustain this dividend level.
DP-228.63%
EPS Next 2Y-16.52%
EPS Next 3Y4.35%
INFORMATION SERVICES GROUP
NASDAQ:III (1/3/2025, 8:00:02 PM)
After market: 3.3 0 (0%)3.3
+0.05 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners61.8%
Inst Owner Change-1.24%
Ins Owners16.02%
Ins Owner Change-0.05%
Market Cap161.93M
Analysts85.71
Price Target5.55 (68.18%)
Short Float %0.47%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Dividend Growth(5Y)N/A
DP-228.63%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.21%
Min EPS beat(2)-11.6%
Max EPS beat(2)44.01%
EPS beat(4)1
Avg EPS beat(4)-22.4%
Min EPS beat(4)-82.93%
Max EPS beat(4)44.01%
EPS beat(8)5
Avg EPS beat(8)-5.91%
EPS beat(12)9
Avg EPS beat(12)10.99%
EPS beat(16)13
Avg EPS beat(16)23.91%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)0.28%
Revenue beat(4)1
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.28%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)9
Avg Revenue beat(16)1.01%
PT rev (1m)0%
PT rev (3m)-10.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-41.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 11.84 | ||
| P/S | 0.63 | ||
| P/FCF | 8.58 | ||
| P/OCF | 7.05 | ||
| P/B | 1.68 | ||
| P/tB | 31.9 | ||
| EV/EBITDA | 26.18 |
EPS(TTM)0.2
EY6.06%
EPS(NY)0.28
Fwd EY8.45%
FCF(TTM)0.38
FCFY11.66%
OCF(TTM)0.47
OCFY14.19%
SpS5.22
BVpS1.97
TBVpS0.1
PEG (NY)N/A
PEG (5Y)7.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -3.18% | ||
| ROCE | 1.15% | ||
| ROIC | 0.83% | ||
| ROICexc | 0.88% | ||
| ROICexgc | 1.92% | ||
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 38.53% | ||
| FCFM | 7.37% |
ROA(3y)5.71%
ROA(5y)3.96%
ROE(3y)13.8%
ROE(5y)9.58%
ROIC(3y)9.13%
ROIC(5y)7.45%
ROICexc(3y)11.37%
ROICexc(5y)9.19%
ROICexgc(3y)41.43%
ROICexgc(5y)32.5%
ROCE(3y)12.68%
ROCE(5y)10.34%
ROICexcg growth 3Y-10.32%
ROICexcg growth 5Y-3.52%
ROICexc growth 3Y1.03%
ROICexc growth 5Y0.19%
OM growth 3Y2.77%
OM growth 5Y1.88%
PM growth 3Y23.44%
PM growth 5Y0.46%
GM growth 3Y-1.13%
GM growth 5Y-1.7%
F-Score4
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 7.93 | ||
| Cap/Depr | 65.1% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 275.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 1.52 |
F-Score4
WACC10.76%
ROIC/WACC0.08
Cap/Depr(3y)54.02%
Cap/Depr(5y)41.95%
Cap/Sales(3y)1.07%
Cap/Sales(5y)0.88%
Profit Quality(3y)146.16%
Profit Quality(5y)505.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-57.45%
EPS 3Y12.62%
EPS 5Y2.13%
EPS Q2Q%-54.55%
EPS Next Y-52.02%
EPS Next 2Y-16.52%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.39%
Revenue growth 3Y5.33%
Revenue growth 5Y1.08%
Sales Q2Q%-14.62%
Revenue Next Year-15.78%
Revenue Next 2Y-8.38%
Revenue Next 3Y-4.06%
Revenue Next 5YN/A
EBIT growth 1Y-91.9%
EBIT growth 3Y8.24%
EBIT growth 5Y2.98%
EBIT Next Year1.49%
EBIT Next 3Y17.9%
EBIT Next 5YN/A
FCF growth 1Y417.21%
FCF growth 3Y-40.89%
FCF growth 5Y-10.19%
OCF growth 1Y224.49%
OCF growth 3Y-34.65%
OCF growth 5Y-8.5%