6.1 USD
+0.06 (+0.99%)
6.1248 USD
+0.02 (+0.41%)
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.
III had a positive operating cash flow in the past year.
Each year in the past 5 years III has been profitable.
III had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.58%, III is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Return On Equity of III (10.32%) is better than 65.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.68%, III is in line with its industry, outperforming 55.29% of the companies in the same industry.
III had an Average Return On Invested Capital over the past 3 years of 5.43%. This 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
The Profit Margin of III (4.05%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin of 5.32%. This is comparable to the rest of the industry: III outperforms 55.29% of its industry peers.
In the last couple of years the Operating Margin of III has declined.
Looking at the Gross Margin, with a value of 42.24%, III is in the better half of the industry, outperforming 62.35% 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 | 5.32% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
The number of shares outstanding for III has been reduced compared to 1 year ago.
Compared to 5 years ago, III has more shares outstanding
Compared to 1 year ago, III has an improved debt to assets ratio.
2.2 Solvency
III has an Altman-Z score of 2.47. 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.
With a Altman-Z score value of 2.47, III perfoms like the industry average, outperforming 48.24% of the companies in the same industry.
III has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as III would need 2.22 years to pay back of all of its debts.
III's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. III outperforms 67.06% of its industry peers.
III has a Debt/Equity ratio of 0.63. This is a neutral value indicating III is somewhat dependend on debt financing.
III has a worse Debt to Equity ratio (0.63) than 60.00% of its industry peers.
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 | 2.47 |
ROIC/WACC0.54
WACC8.66%
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 better Current ratio (2.22) than 64.71% of its industry peers.
A Quick Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.22, III is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
III shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
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 -5.74%.
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.
The Revenue is expected to grow by 3.92% on average over the next years.
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.
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
The Price/Earnings ratio is 20.33, which indicates a rather expensive current valuation of III.
III's Price/Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 68.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, III is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.97, which indicates a correct valuation of III.
Based on the Price/Forward Earnings ratio, III is valued a bit cheaper than 68.24% of the companies in the same industry.
III's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of III is on the same level as its industry peers.
III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 18.36 |
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)0.32
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%. Purely for dividend investing, there may be better candidates out there.
III's Dividend Yield is rather good when compared to the industry average which is at 1.95. III pays more dividend than 97.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, III pays a bit more dividend than the S&P500 average.
| 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%
6.1
+0.06 (+0.99%)
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 Cap292.07M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target7.33 (20.16%)
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 | 20.33 | ||
| Fwd PE | 16.97 | ||
| P/S | 1.21 | ||
| P/FCF | 10.94 | ||
| P/OCF | 9.58 | ||
| P/B | 3.08 | ||
| P/tB | 167.85 | ||
| EV/EBITDA | 18.36 |
EPS(TTM)0.3
EY4.92%
EPS(NY)0.36
Fwd EY5.89%
FCF(TTM)0.56
FCFY9.14%
OCF(TTM)0.64
OCFY10.44%
SpS5.04
BVpS1.98
TBVpS0.04
PEG (NY)0.32
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 | 2.47 |
F-Score9
WACC8.66%
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 20.33 and the Price/Book (PB) ratio is 3.08.
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%.