INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
TSX:ISC - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
ISC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Real Estate Management & Development industry. ISC scores excellent on profitability, but 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.
Each year in the past 5 years ISC has been profitable.
In the past 5 years ISC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ISC (3.89%) is better than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 11.23%, ISC belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
ISC has a better Return On Invested Capital (8.06%) than 92.86% of its industry peers.
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 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 11.23% | ||
| ROIC | 8.06% |
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 8.18%. This is in the better half of the industry: ISC outperforms 60.71% of its industry peers.
In the last couple of years the Profit Margin of ISC has declined.
ISC's Operating Margin of 20.57% is in line compared to the rest of the industry. ISC outperforms 46.43% of its industry peers.
ISC's Operating Margin has been stable in the last couple of years.
The Gross Margin of ISC (67.87%) is better than 85.71% of its industry peers.
ISC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.57% | ||
| PM (TTM) | 8.18% | ||
| GM | 67.87% |
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
ISC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for ISC has been reduced compared to a year ago.
2.2 Solvency
ISC has an Altman-Z score of 2.00. 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.
The Altman-Z score of ISC (2.00) is better than 75.00% of its industry peers.
ISC has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as ISC would need 2.78 years to pay back of all of its debts.
The Debt to FCF ratio of ISC (2.78) is better than 92.86% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that ISC is somewhat dependend on debt financing.
ISC has a Debt to Equity ratio (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 2 |
ROIC/WACC1.14
WACC7.07%
2.3 Liquidity
A Current Ratio of 0.66 indicates that ISC may have some problems paying its short term obligations.
ISC has a worse Current ratio (0.66) than 64.29% of its industry peers.
ISC has a Quick Ratio of 0.66. This is a bad value and indicates that ISC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ISC (0.66) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ISC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.10%.
ISC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.18% yearly.
Looking at the last year, ISC shows a quite strong growth in Revenue. The Revenue has grown by 15.31% in the last year.
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)-32.1%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%8.17%
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 50.98% on average per year.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.15%
Revenue Next 2Y6.07%
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.
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
The Price/Earnings ratio is 24.18, which indicates a rather expensive current valuation of ISC.
Compared to the rest of the industry, the Price/Earnings ratio of ISC is on the same level as its industry peers.
ISC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.78.
The Price/Forward Earnings ratio is 13.35, 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 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, ISC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISC is valued cheaper than 92.86% 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 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.84 | ||
| EV/EBITDA | 8.24 |
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.
The decent profitability rating of ISC may justify a higher PE ratio.
A more expensive valuation may be justified as ISC's earnings are expected to grow with 50.98% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y50.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ISC has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.42, ISC pays a bit more dividend than its industry peers.
ISC's Dividend Yield is a higher than the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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.
Dividend Growth(5Y)2.67%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
82.33% of the earnings are spent on dividend by ISC. This is not a sustainable payout ratio.
ISC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.33%
EPS Next 2Y50.98%
EPS Next 3YN/A
TSX:ISC (4/25/2025, 7:00:00 PM)
26.6
+0.2 (+0.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners30.76%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap492.63M
Analysts77.78
Price Target33.66 (26.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend0.91
Dividend Growth(5Y)2.67%
DP82.33%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.64%
Min EPS beat(2)-47.04%
Max EPS beat(2)-20.24%
EPS beat(4)1
Avg EPS beat(4)-23.68%
Min EPS beat(4)-92.93%
Max EPS beat(4)65.51%
EPS beat(8)2
Avg EPS beat(8)-15.86%
EPS beat(12)5
Avg EPS beat(12)-6.19%
EPS beat(16)8
Avg EPS beat(16)-2.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)8.35%
Revenue beat(8)3
Avg Revenue beat(8)0.16%
Revenue beat(12)5
Avg Revenue beat(12)1.65%
Revenue beat(16)8
Avg Revenue beat(16)2.79%
PT rev (1m)-4.07%
PT rev (3m)N/A
EPS NQ rev (1m)102.63%
EPS NQ rev (3m)102.63%
EPS NY rev (1m)-5.47%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)-4.19%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 13.35 | ||
| P/S | 1.99 | ||
| P/FCF | 7.84 | ||
| P/OCF | 6.92 | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.24 |
EPS(TTM)1.1
EY4.14%
EPS(NY)1.99
Fwd EY7.49%
FCF(TTM)3.39
FCFY12.76%
OCF(TTM)3.84
OCFY14.45%
SpS13.36
BVpS9.73
TBVpS-13.86
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 11.23% | ||
| ROCE | 11.35% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.46% | ||
| ROICexgc | N/A | ||
| OM | 20.57% | ||
| PM (TTM) | 8.18% | ||
| GM | 67.87% | ||
| FCFM | 25.41% |
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-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 30.14% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 3.63 | ||
| Cash Conversion | 90.74% | ||
| Profit Quality | 310.59% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2 |
F-Score5
WACC7.07%
ROIC/WACC1.14
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)-32.1%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%-9.38%
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.31%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%8.17%
Revenue Next Year6.15%
Revenue Next 2Y6.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.04%
EBIT growth 3Y2.74%
EBIT growth 5Y13.01%
EBIT Next Year70.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.47%
FCF growth 3Y2.15%
FCF growth 5Y24.76%
OCF growth 1Y25.38%
OCF growth 3Y5.16%
OCF growth 5Y24.67%