6 USD
-0.1 (-1.64%)
6 USD
0 (0%)
Overall III gets a fundamental rating of 5 out of 10. We evaluated III against 85 industry peers in the IT Services industry. III has an average financial health and profitability rating. 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.
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
The Return On Assets of III (4.58%) is better than 64.71% of its industry peers.
The Return On Equity of III (10.32%) is better than 65.88% of its industry peers.
The Return On Invested Capital of III (4.68%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for III is significantly below the industry average of 29.59%.
| 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
Looking at the Profit Margin, with a value of 4.05%, III is in line with its industry, outperforming 60.00% of the companies in the same industry.
III's Profit Margin has declined in the last couple of years.
III has a Operating Margin (5.32%) which is comparable to the rest of the industry.
III's Operating Margin has declined in the last couple of years.
III's Gross Margin of 42.24% is fine compared to the rest of the industry. III outperforms 62.35% 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.
III has less shares outstanding than it did 1 year ago.
The number of shares outstanding for III has been increased compared to 5 years ago.
The debt/assets ratio for III has been reduced compared to a year ago.
2.2 Solvency
III has an Altman-Z score of 2.49. 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's Altman-Z score of 2.49 is in line compared to the rest of the industry. III outperforms 47.06% 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.
With a decent Debt to FCF ratio value of 2.22, III is doing good in the industry, outperforming 67.06% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, III is doing worse than 60.00% of the companies in the same industry.
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 | 2.49 |
ROIC/WACC0.54
WACC8.62%
2.3 Liquidity
III has a Current Ratio of 2.22. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
III has a Current ratio of 2.22. This is in the better half of the industry: III outperforms 64.71% of its industry peers.
III has a Quick Ratio of 2.22. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of III (2.22) is better than 65.88% 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.
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.
The Revenue has decreased by -5.74% in the past 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%80%
Revenue 1Y (TTM)-5.74%
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 37.07% yearly.
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
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.
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 20.00, the valuation of III can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 68.24% of the companies listed in the same industry.
III's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
III is valuated correctly with a Price/Forward Earnings ratio of 16.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 68.24% of the companies listed in the same industry.
III is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 16.69 |
4.2 Price Multiples
III's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, III is valued cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 18.53 |
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
III has a Yearly Dividend Yield of 3.12%.
Compared to an average industry Dividend Yield of 1.95, III pays a better dividend. On top of this III pays more dividend than 97.65% of the companies listed in the same industry.
III's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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%
6
-0.1 (-1.64%)
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-3.63%
Market Cap287.28M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target7.33 (22.17%)
Short Float %1.86%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)4.83%
EPS NY rev (1m)6.58%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 16.69 | ||
| P/S | 1.19 | ||
| P/FCF | 10.76 | ||
| P/OCF | 9.42 | ||
| P/B | 3.03 | ||
| P/tB | 165.1 | ||
| EV/EBITDA | 18.53 |
EPS(TTM)0.3
EY5%
EPS(NY)0.36
Fwd EY5.99%
FCF(TTM)0.56
FCFY9.3%
OCF(TTM)0.64
OCFY10.62%
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 | 2.49 |
F-Score9
WACC8.62%
ROIC/WACC0.54
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 20 and the Price/Book (PB) ratio is 3.03.
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%.