INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.85 USD
-0.06 (-1.02%)
5.85 USD
0 (0%)
III gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 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
III had positive earnings in the past year.
In the past year III had a positive cash flow from operations.
In the past 5 years III has always been profitable.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.92%, III is doing good in the industry, outperforming 64.71% of the companies in the same industry.
III has a better Return On Equity (8.35%) than 63.53% of its industry peers.
III has a Return On Invested Capital (4.78%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for III is significantly below the industry average of 27.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 8.35% | ||
| ROIC | 4.78% |
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
Looking at the Profit Margin, with a value of 3.27%, III is in line with its industry, outperforming 56.47% of the companies in the same industry.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin (5.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of III has declined.
With a decent Gross Margin value of 41.77%, III is doing good in the industry, outperforming 61.18% 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 | 5.22% | ||
| PM (TTM) | 3.27% | ||
| GM | 41.77% |
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.
Compared to 1 year ago, III has less shares outstanding
Compared to 5 years ago, III has more shares outstanding
III has a better debt/assets ratio than last year.
2.2 Solvency
III has an Altman-Z score of 2.66. 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.
The Altman-Z score of III (2.66) is comparable to the rest of the industry.
The Debt to FCF ratio of III is 2.31, which is a good value as it means it would take III, 2.31 years of fcf income to pay off all of its debts.
III has a Debt to FCF ratio of 2.31. This is in the better half of the industry: III outperforms 70.59% 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 | 2.31 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.55
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.43 indicates that III has no problem at all paying its short term obligations.
The Current ratio of III (2.43) is better than 74.12% of its industry peers.
A Quick Ratio of 2.43 indicates that III has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.43, III is doing good in the industry, outperforming 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past 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.
III shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.94%.
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%80%
Revenue 1Y (TTM)-14.94%
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 33.70% yearly.
Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y53.52%
EPS Next 2Y33.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.47%
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.
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
Based on the Price/Earnings ratio of 19.50, the valuation of III can be described as rather expensive.
III's Price/Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 63.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (26.03), we can say III is valued slightly cheaper.
III is valuated correctly with a Price/Forward Earnings ratio of 16.36.
70.59% of the companies in the same industry are more expensive than III, based on the Price/Forward Earnings ratio.
III is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
III's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of III indicates a rather cheap valuation: III is cheaper than 89.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 18.15 |
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 33.70% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, III has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, III pays a better dividend. On top of this III pays more dividend than 96.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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
146.02% of the earnings are spent on dividend by III. This is not a sustainable payout ratio.
DP146.02%
EPS Next 2Y33.7%
EPS Next 3YN/A
5.85
-0.06 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change1.13%
Ins Owners15.88%
Ins Owner Change1.11%
Market Cap281.97M
Revenue(TTM)247.59M
Net Income(TTM)7.86M
Analysts85.71
Price Target6.69 (14.36%)
Short Float %1.45%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP146.02%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.76%
Min EPS beat(2)15.51%
Max EPS beat(2)20.01%
EPS beat(4)3
Avg EPS beat(4)10.68%
Min EPS beat(4)-11.6%
Max EPS beat(4)20.01%
EPS beat(8)5
Avg EPS beat(8)-3.29%
EPS beat(12)9
Avg EPS beat(12)4.74%
EPS beat(16)13
Avg EPS beat(16)14.39%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.77%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.7%
Revenue beat(12)5
Avg Revenue beat(12)-1.17%
Revenue beat(16)8
Avg Revenue beat(16)-0.62%
PT rev (1m)10.53%
PT rev (3m)11.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.36 | ||
| P/S | 1.17 | ||
| P/FCF | 10.99 | ||
| P/OCF | 9.98 | ||
| P/B | 3 | ||
| P/tB | 77.55 | ||
| EV/EBITDA | 18.15 |
EPS(TTM)0.3
EY5.13%
EPS(NY)0.36
Fwd EY6.11%
FCF(TTM)0.53
FCFY9.1%
OCF(TTM)0.59
OCFY10.02%
SpS4.98
BVpS1.95
TBVpS0.08
PEG (NY)0.36
PEG (5Y)N/A
Graham Number3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 8.35% | ||
| ROCE | 7.68% | ||
| ROIC | 4.78% | ||
| ROICexc | 5.66% | ||
| ROICexgc | 16.44% | ||
| OM | 5.22% | ||
| PM (TTM) | 3.27% | ||
| GM | 41.77% | ||
| FCFM | 10.68% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 51.58% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 160.77% | ||
| Profit Quality | 326.29% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | 2.66 |
F-Score9
WACC8.66%
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 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.94%
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 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y215.34%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year371.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y661.13%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y399.03%
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 19.5 and the Price/Book (PB) ratio is 3.
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 146.02%.