INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.55 USD
+0.09 (+1.65%)
We assign a fundamental rating of 5 out of 10 to III. III was compared to 86 industry peers in the IT Services industry. While III has a great health rating, its profitability is only average at the moment. 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
In the past year III was profitable.
In the past year III had a positive cash flow from operations.
In the past 5 years III has always been profitable.
Each year in the past 5 years III had a positive operating cash flow.
1.2 Ratios
III has a Return On Assets of 3.92%. This is in the better half of the industry: III outperforms 63.95% of its industry peers.
The Return On Equity of III (8.35%) is better than 62.79% of its industry peers.
III has a Return On Invested Capital (4.78%) which is comparable to the rest of the 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 21.42%.
| 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.
With a Operating Margin value of 5.22%, III perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
III's Operating Margin has declined in the last couple of years.
The Gross Margin of III (41.77%) is better than 61.63% 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 | 5.22% | ||
| 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.
III has less shares outstanding than it did 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
An Altman-Z score of 2.53 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.53, III is in line with its industry, outperforming 44.19% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 2.31, III is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
III has a Debt to Equity ratio (0.63) which 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 | 2.53 |
ROIC/WACC0.57
WACC8.42%
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 Current ratio of 2.43. This is in the better half of the industry: III outperforms 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 has a Quick ratio of 2.43. This is in the better half 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
The earnings per share for III have decreased by 0.00% in the last year.
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%.
III shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.41% yearly.
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 33.70% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.47% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.35, III is valued on the expensive side.
III's Price/Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 61.63% of the companies in the same industry.
III's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.49.
The Price/Forward Earnings ratio is 15.52, which indicates a correct valuation of III.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 72.09% of the companies in the same industry.
III is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as III.
89.53% 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 | 10.43 | ||
| EV/EBITDA | 16.91 |
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)0.4
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.49, III pays a better dividend. On top of this III pays more dividend than 97.67% of the companies listed in the same industry.
III's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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 2Y33.7%
EPS Next 3YN/A
NASDAQ:III (10/15/2025, 3:48:47 PM)
5.55
+0.09 (+1.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change0.01%
Ins Owners15.88%
Ins Owner Change1.11%
Market Cap267.51M
Analysts85.71
Price Target6.69 (20.54%)
Short Float %0.94%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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)3.05%
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 | 21.35 | ||
| Fwd PE | 15.52 | ||
| P/S | 1.11 | ||
| P/FCF | 10.43 | ||
| P/OCF | 9.47 | ||
| P/B | 2.84 | ||
| P/tB | 73.57 | ||
| EV/EBITDA | 16.91 |
EPS(TTM)0.26
EY4.68%
EPS(NY)0.36
Fwd EY6.44%
FCF(TTM)0.53
FCFY9.59%
OCF(TTM)0.59
OCFY10.56%
SpS4.98
BVpS1.95
TBVpS0.08
PEG (NY)0.4
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 | 2.53 |
F-Score9
WACC8.42%
ROIC/WACC0.57
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 Y53.52%
EPS Next 2Y33.7%
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 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%