INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ISC - CA45676A1057 - Common Stock
45.25 CAD
-0.38 (-0.83%)
Taking everything into account, ISC scores 5 out of 10 in our fundamental rating. ISC was compared to 33 industry peers in the Real Estate Management & Development industry. While ISC has a great profitability rating, there are some minor concerns on its financial health. ISC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ISC was profitable.
- In the past year ISC had a positive cash flow from operations.
- In the past 5 years ISC has always been profitable.
- ISC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ISC has a Return On Assets of 5.25%. This is amongst the best in the industry. ISC outperforms 81.82% of its industry peers.
- ISC has a Return On Equity of 14.00%. This is amongst the best in the industry. ISC outperforms 90.91% of its industry peers.
- With an excellent Return On Invested Capital value of 8.92%, ISC belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ISC is in line with the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.25% | ||
| ROE | 14% | ||
| ROIC | 8.92% |
ROA(3y)6.47%
ROA(5y)8.37%
ROE(3y)15.28%
ROE(5y)17.25%
ROIC(3y)9.57%
ROIC(5y)11.17%
1.3 Margins
- The Profit Margin of ISC (10.68%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ISC has declined.
- ISC has a Operating Margin of 21.84%. This is comparable to the rest of the industry: ISC outperforms 51.52% of its industry peers.
- ISC's Operating Margin has been stable in the last couple of years.
- ISC has a better Gross Margin (69.62%) than 84.85% of its industry peers.
- In the last couple of years the Gross Margin of ISC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.84% | ||
| PM (TTM) | 10.68% | ||
| GM | 69.62% |
OM growth 3Y-9.44%
OM growth 5Y-0.18%
PM growth 3Y-24.4%
PM growth 5Y-10.92%
GM growth 3Y-1.7%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ISC is still creating some value.
- ISC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for ISC has been increased compared to 5 years ago.
- The debt/assets ratio for ISC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.77 indicates that ISC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.77, ISC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ISC has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as ISC would need 2.80 years to pay back of all of its debts.
- ISC has a better Debt to FCF ratio (2.80) than 93.94% of its industry peers.
- ISC has a Debt/Equity ratio of 0.92. This is a neutral value indicating ISC is somewhat dependend on debt financing.
- ISC has a worse Debt to Equity ratio (0.92) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.18
WACC7.58%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that ISC may have some problems paying its short term obligations.
- ISC has a worse Current ratio (0.59) than 60.61% of its industry peers.
- ISC has a Quick Ratio of 0.59. This is a bad value and indicates that ISC is not financially healthy enough and could expect problems in meeting its short term obligations.
- ISC has a Quick ratio of 0.59. This is in the lower half of the industry: ISC underperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.20% over the past year.
- The Earnings Per Share has been decreasing by -0.18% on average over the past years.
- ISC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.85%.
- Measured over the past years, ISC shows a quite strong growth in Revenue. The Revenue has been growing by 13.21% on average per year.
EPS 1Y (TTM)29.2%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%95.65%
Revenue 1Y (TTM)4.85%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%7.71%
3.2 Future
- Based on estimates for the next years, ISC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
- Based on estimates for the next years, ISC will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y85.11%
EPS Next 2Y41.15%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y4.67%
Revenue Next 3Y4.69%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.99, the valuation of ISC can be described as expensive.
- ISC's Price/Earnings is on the same level as the industry average.
- ISC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 20.65 indicates a rather expensive valuation of ISC.
- ISC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ISC is cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ISC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ISC is valued cheaper than 81.82% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ISC indicates a somewhat cheap valuation: ISC is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
- ISC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ISC has a very decent profitability rating, which may justify a higher PE ratio.
- ISC's earnings are expected to grow with 30.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y41.15%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.94%, ISC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.32, ISC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ISC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
- The dividend of ISC has a limited annual growth rate of 2.67%.
- ISC has been paying a dividend for over 5 years, so it has already some track record.
- As ISC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- ISC pays out 62.54% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ISC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.54%
EPS Next 2Y41.15%
EPS Next 3Y30.13%
INFORMATION SERVICES CORP / ISC.CA FAQ
What is the ChartMill fundamental rating of INFORMATION SERVICES CORP (ISC.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ISC.CA.
What is the valuation status for ISC stock?
ChartMill assigns a valuation rating of 6 / 10 to INFORMATION SERVICES CORP (ISC.CA). This can be considered as Fairly Valued.
What is the profitability of ISC stock?
INFORMATION SERVICES CORP (ISC.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ISC stock?
The Price/Earnings (PE) ratio for INFORMATION SERVICES CORP (ISC.CA) is 30.99 and the Price/Book (PB) ratio is 4.36.
Can you provide the dividend sustainability for ISC stock?
The dividend rating of INFORMATION SERVICES CORP (ISC.CA) is 5 / 10 and the dividend payout ratio is 62.54%.