INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ISC - CA45676A1057 - Common Stock
45.25 CAD
-0.38 (-0.83%)
ISC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ISC was profitable.
- ISC had a positive operating cash flow in the past year.
- In the past 5 years ISC has always been profitable.
- In the past 5 years ISC always reported a positive cash flow from operatings.
1.2 Ratios
- ISC has a better Return On Assets (5.25%) than 81.82% of its industry peers.
- Looking at the Return On Equity, with a value of 14.00%, ISC belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.92%, ISC belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
- ISC had an Average Return On Invested Capital over the past 3 years of 9.57%. This 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
- ISC's Profit Margin of 10.68% is in line compared to the rest of the industry. ISC outperforms 57.58% of its industry peers.
- In the last couple of years the Profit Margin of ISC has declined.
- ISC has a Operating Margin (21.84%) which is comparable to the rest of the industry.
- ISC's Operating Margin has been stable in the last couple of years.
- The Gross Margin of ISC (69.62%) is better than 84.85% of its industry peers.
- ISC's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- ISC has an Altman-Z score of 2.75. This is not the best score and indicates that ISC is in the grey zone with still only limited risk for bankruptcy at the moment.
- ISC has a better Altman-Z score (2.75) than 66.67% of its industry peers.
- 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 Debt to FCF ratio of 2.80. This is amongst the best in the industry. ISC outperforms 93.94% of its industry peers.
- A Debt/Equity ratio of 0.92 indicates that ISC is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.92, ISC is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.75 |
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 worse Quick ratio (0.59) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- ISC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.20%, which is quite impressive.
- Measured over the past years, ISC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.18% on average per year.
- 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
- ISC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.13% yearly.
- ISC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- ISC is valuated quite expensively with a Price/Earnings ratio of 30.99.
- ISC's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of ISC to the average of the S&P500 Index (27.21), we can say ISC is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.65, ISC is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, ISC is valued cheaper than 81.82% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ISC to the average of the S&P500 Index (24.26), we can say ISC is valued inline with the index average.
| 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 cheaply inside the industry as 81.82% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ISC is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 12.45 |
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.
- ISC has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ISC's earnings are expected to grow with 30.13% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y41.15%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
- ISC has a Yearly Dividend Yield of 2.02%. Purely for dividend investing, there may be better candidates out there.
- ISC's Dividend Yield is a higher than the industry average which is at 2.31.
- ISC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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.
- ISC's earnings are growing more than its dividend. This makes the dividend growth 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%.