INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.24 USD
0 (0%)
5.24 USD
0 (0%)
Taking everything into account, III scores 5 out of 10 in our fundamental rating. III was compared to 86 industry peers in the IT Services industry. III has an excellent financial health rating, but there are some minor concerns on its profitability. 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
III had positive earnings in the past year.
In the past year III had a positive cash flow from operations.
Each year in the past 5 years III has been profitable.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of III (3.92%) is better than 63.95% of its industry peers.
Looking at the Return On Equity, with a value of 8.35%, III is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
III has a Return On Invested Capital (4.78%) which is in line with 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 21.79%.
| 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
III's Profit Margin of 3.27% is in line compared to the rest of the industry. III outperforms 55.81% of its industry peers.
III's Profit Margin has declined in the last couple of years.
The Operating Margin of III (5.22%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of III has declined.
Looking at the Gross Margin, with a value of 41.77%, III is in the better half of the industry, outperforming 61.63% 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
III has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, III has less shares outstanding
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 2.47 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
III has a Altman-Z score (2.47) which is comparable to the rest of the industry.
III has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as III would need 2.31 years to pay back of 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 70.93% of its industry peers.
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 in line with its industry, outperforming 41.86% 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 | 2.31 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.53
WACC8.96%
2.3 Liquidity
A Current Ratio of 2.43 indicates that III has no problem at all paying its short term obligations.
III has a better Current ratio (2.43) than 74.42% of its industry peers.
A Quick Ratio of 2.43 indicates that III has no problem at all paying its short term obligations.
III's Quick ratio of 2.43 is fine compared to the rest of the industry. III outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
III shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
III shows a decrease in Revenue. In the last year, the revenue decreased by -9.86%.
The Revenue has been decreasing by -1.41% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
Revenue 1Y (TTM)-9.86%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-4.2%
3.2 Future
The Earnings Per Share is expected to grow by 32.95% on average over the next years. This is a very strong growth
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y48.97%
EPS Next 2Y32.95%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.15.
Based on the Price/Earnings ratio, III is valued a bit cheaper than 65.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (27.30), we can say III is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.82, which indicates a correct valuation of III.
Based on the Price/Forward Earnings ratio, III is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, III is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 14.82 |
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 cheaply inside the industry as 90.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 16.31 |
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 32.95% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y32.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 3.44%.
III's Dividend Yield is rather good when compared to the industry average which is at 2.36. III pays more dividend than 97.67% of the companies 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 | 3.44% |
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
III pays out 146.02% of its income as dividend. This is not a sustainable payout ratio.
DP146.02%
EPS Next 2Y32.95%
EPS Next 3YN/A
5.24
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners61.72%
Inst Owner Change6.41%
Ins Owners15.94%
Ins Owner Change1.33%
Market Cap252.57M
Analysts85.71
Price Target6.06 (15.65%)
Short Float %0.78%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)1.06%
PT rev (3m)1.06%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)11.11%
EPS NY rev (1m)3.87%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 14.82 | ||
| P/S | 1.05 | ||
| P/FCF | 9.85 | ||
| P/OCF | 8.94 | ||
| P/B | 2.68 | ||
| P/tB | 69.46 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)0.26
EY4.96%
EPS(NY)0.35
Fwd EY6.75%
FCF(TTM)0.53
FCFY10.16%
OCF(TTM)0.59
OCFY11.18%
SpS4.98
BVpS1.95
TBVpS0.08
PEG (NY)0.41
PEG (5Y)N/A
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%
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-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 | 2.47 |
F-Score9
WACC8.96%
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)0%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
EPS Next Y48.97%
EPS Next 2Y32.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.86%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-4.2%
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 Year340.83%
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%