INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
TSX:ISC - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
Taking everything into account, ISC scores 6 out of 10 in our fundamental rating. ISC was compared to 29 industry peers in the Real Estate Management & Development industry. While ISC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ISC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years ISC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.22%, ISC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
ISC has a Return On Equity of 14.81%. This is amongst the best in the industry. ISC outperforms 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.16%, ISC belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ISC is in line with the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 14.81% | ||
| ROIC | 9.16% |
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
ISC has a Profit Margin of 10.91%. This is in the better half of the industry: ISC outperforms 62.07% of its industry peers.
In the last couple of years the Profit Margin of ISC has declined.
ISC's Operating Margin of 23.60% is fine compared to the rest of the industry. ISC outperforms 65.52% of its industry peers.
In the last couple of years the Operating Margin of ISC has remained more or less at the same level.
ISC has a better Gross Margin (68.38%) than 86.21% 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 | 23.6% | ||
| PM (TTM) | 10.91% | ||
| GM | 68.38% |
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.
The number of shares outstanding for ISC has been increased compared to 1 year ago.
Compared to 5 years ago, ISC has more shares outstanding
Compared to 1 year ago, ISC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that ISC is not a great score, but indicates only limited risk for bankruptcy at the moment.
ISC has a better Altman-Z score (2.25) than 72.41% of its industry peers.
The Debt to FCF ratio of ISC is 3.08, which is a good value as it means it would take ISC, 3.08 years of fcf income to pay off all of its debts.
ISC has a Debt to FCF ratio of 3.08. This is amongst the best in the industry. ISC outperforms 93.10% of its industry peers.
ISC has a Debt/Equity ratio of 0.96. This is a neutral value indicating ISC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.96, ISC perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.25
WACC7.32%
2.3 Liquidity
A Current Ratio of 0.73 indicates that ISC may have some problems paying its short term obligations.
ISC has a worse Current ratio (0.73) than 68.97% of its industry peers.
A Quick Ratio of 0.73 indicates that ISC may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, ISC is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
ISC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.46%, which is quite good.
The Earnings Per Share has been decreasing by -0.18% on average over the past years.
Looking at the last year, ISC shows a quite strong growth in Revenue. The Revenue has grown by 12.84% in the last year.
ISC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.21% yearly.
EPS 1Y (TTM)17.46%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%1900%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%5.15%
3.2 Future
The Earnings Per Share is expected to grow by 50.98% on average over the next years. This is a very strong growth
ISC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ISC is valuated rather expensively with a Price/Earnings ratio of 21.63.
Based on the Price/Earnings ratio, ISC is valued a bit cheaper than 68.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. ISC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.77, which indicates a correct valuation of ISC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ISC indicates a rather cheap valuation: ISC is cheaper than 93.10% of the companies listed in the same industry.
ISC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 12.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISC is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ISC is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ISC may justify a higher PE ratio.
ISC's earnings are expected to grow with 50.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y50.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, ISC has a reasonable but not impressive dividend return.
ISC's Dividend Yield is a higher than the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.42, ISC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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.
ISC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ISC pays out 61.46% of its income as dividend. This is not a sustainable payout ratio.
ISC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.46%
EPS Next 2Y50.98%
EPS Next 3YN/A
TSX:ISC (6/30/2025, 7:00:00 PM)
32.01
-0.44 (-1.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners29.95%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap593.15M
Analysts75.56
Price Target33.35 (4.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend0.91
Dividend Growth(5Y)2.67%
DP61.46%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.69%
Min EPS beat(2)-20.24%
Max EPS beat(2)2.87%
EPS beat(4)2
Avg EPS beat(4)0.27%
Min EPS beat(4)-47.04%
Max EPS beat(4)65.51%
EPS beat(8)2
Avg EPS beat(8)-16.7%
EPS beat(12)5
Avg EPS beat(12)-7.1%
EPS beat(16)8
Avg EPS beat(16)-2.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)8.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.15%
Revenue beat(12)4
Avg Revenue beat(12)1.09%
Revenue beat(16)7
Avg Revenue beat(16)1.93%
PT rev (1m)-0.91%
PT rev (3m)-4.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 12.77 | ||
| P/S | 2.37 | ||
| P/FCF | 10.17 | ||
| P/OCF | 8.92 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.79 |
EPS(TTM)1.48
EY4.62%
EPS(NY)2.51
Fwd EY7.83%
FCF(TTM)3.15
FCFY9.84%
OCF(TTM)3.59
OCFY11.21%
SpS13.51
BVpS9.95
TBVpS-13.49
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 14.81% | ||
| ROCE | 12.9% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.51% | ||
| ROICexgc | 635.29% | ||
| OM | 23.6% | ||
| PM (TTM) | 10.91% | ||
| GM | 68.38% | ||
| FCFM | 23.31% |
ROA(3y)6.47%
ROA(5y)8.37%
ROE(3y)15.28%
ROE(5y)17.25%
ROIC(3y)9.57%
ROIC(5y)11.17%
ROICexc(3y)10.57%
ROICexc(5y)13.03%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.48%
ROCE(5y)15.74%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-26.64%
ROICexc growth 5Y-11.94%
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%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 30.18% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 77.28% | ||
| Profit Quality | 213.69% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.25 |
F-Score7
WACC7.32%
ROIC/WACC1.25
Cap/Depr(3y)266.66%
Cap/Depr(5y)165.46%
Cap/Sales(3y)25.59%
Cap/Sales(5y)15.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.46%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%1900%
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%5.15%
Revenue Next Year5.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.24%
EBIT growth 3Y2.74%
EBIT growth 5Y13.01%
EBIT Next Year71.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y15.94%
FCF growth 3Y2.15%
FCF growth 5Y24.76%
OCF growth 1Y28.96%
OCF growth 3Y5.16%
OCF growth 5Y24.67%