INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
TSX:ISC - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
Overall ISC gets a fundamental rating of 6 out of 10. We evaluated ISC against 30 industry peers in the Real Estate Management & Development industry. While ISC belongs to the best of the industry regarding profitability, there are 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.
In the past year ISC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.99%, 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 11.89%. This is amongst the best in the industry. ISC outperforms 82.76% of its industry peers.
ISC has a better Return On Invested Capital (8.24%) than 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ISC is significantly above the industry average of 7.11%.
The last Return On Invested Capital (8.24%) for ISC is well below the 3 year average (12.69%), which needs to be investigated, but indicates that ISC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.89% | ||
| ROIC | 8.24% |
ROA(3y)9.77%
ROA(5y)9.85%
ROE(3y)19.3%
ROE(5y)18.41%
ROIC(3y)12.69%
ROIC(5y)12.36%
1.3 Margins
With a decent Profit Margin value of 8.51%, ISC is doing good in the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ISC has declined.
ISC's Operating Margin of 21.36% is in line compared to the rest of the industry. ISC outperforms 51.72% of its industry peers.
ISC's Operating Margin has improved in the last couple of years.
ISC has a Gross Margin of 68.60%. This is amongst the best in the industry. ISC outperforms 82.76% of its industry peers.
ISC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.36% | ||
| PM (TTM) | 8.51% | ||
| GM | 68.6% |
OM growth 3Y-0.14%
OM growth 5Y3.16%
PM growth 3Y-8.6%
PM growth 5Y-5.65%
GM growth 3Y-1.62%
GM growth 5Y-1.1%
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.
ISC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ISC is higher compared to a year ago.
2.2 Solvency
ISC has an Altman-Z score of 1.99. 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 Altman-Z score of 1.99. This is in the better half of the industry: ISC outperforms 72.41% of its industry peers.
The Debt to FCF ratio of ISC is 2.92, which is a good value as it means it would take ISC, 2.92 years of fcf income to pay off all of its debts.
ISC's Debt to FCF ratio of 2.92 is amongst the best of the industry. ISC outperforms 89.66% of its industry peers.
ISC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.06, ISC is in line with its industry, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.14
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.61 indicates that ISC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, ISC is doing worse than 65.52% of the companies in the same industry.
ISC has a Quick Ratio of 0.61. 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's Quick ratio of 0.61 is on the low side compared to the rest of the industry. ISC is outperformed by 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
ISC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.66%.
Measured over the past years, ISC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.50% on average per year.
The Revenue has grown by 19.46% in the past year. This is quite good.
The Revenue has been growing by 12.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.66%
EPS 3Y10.83%
EPS 5Y11.5%
EPS Q2Q%-50%
Revenue 1Y (TTM)19.46%
Revenue growth 3Y16.21%
Revenue growth 5Y12.49%
Sales Q2Q%11.58%
3.2 Future
Based on estimates for the next years, ISC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.02% on average per year.
The Revenue is expected to grow by 10.26% on average over the next years. This is quite good.
EPS Next Y4.24%
EPS Next 2Y13.74%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue Next Year18.86%
Revenue Next 2Y12.72%
Revenue Next 3Y10.26%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.81, the valuation of ISC can be described as rather expensive.
72.41% of the companies in the same industry are more expensive than ISC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ISC is valued at the same level.
With a Price/Forward Earnings ratio of 12.84, ISC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ISC indicates a rather cheap valuation: ISC is cheaper than 86.21% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ISC to the average of the S&P500 Index (22.68), we can say ISC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
93.10% of the companies in the same industry are more expensive than ISC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ISC is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ISC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ISC may justify a higher PE ratio.
ISC's earnings are expected to grow with 16.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.61
PEG (5Y)2.07
EPS Next 2Y13.74%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
ISC has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.36, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of ISC has a limited annual growth rate of 2.75%.
ISC has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2.75%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
80.45% 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.
DP80.45%
EPS Next 2Y13.74%
EPS Next 3Y16.02%
TSX:ISC (2/21/2025, 7:00:00 PM)
26.91
-0.84 (-3.03%)
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 Cap498.37M
Analysts77.78
Price Target35.09 (30.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.92
Dividend Growth(5Y)2.75%
DP80.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.23%
Min EPS beat(2)-47.04%
Max EPS beat(2)65.51%
EPS beat(4)1
Avg EPS beat(4)-23.56%
Min EPS beat(4)-92.93%
Max EPS beat(4)65.51%
EPS beat(8)2
Avg EPS beat(8)-17.32%
EPS beat(12)6
Avg EPS beat(12)-1.9%
EPS beat(16)9
Avg EPS beat(16)2.39%
Revenue beat(2)1
Avg Revenue beat(2)2.24%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)8.35%
Revenue beat(4)2
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)8.35%
Revenue beat(8)3
Avg Revenue beat(8)0.33%
Revenue beat(12)6
Avg Revenue beat(12)2.35%
Revenue beat(16)9
Avg Revenue beat(16)3.01%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)35.85%
EPS NQ rev (3m)N/A
EPS NY rev (1m)33.19%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)3.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 12.84 | ||
| P/S | 2.05 | ||
| P/FCF | 7.86 | ||
| P/OCF | 7.02 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.52 |
EPS(TTM)1.13
EY4.2%
EPS(NY)2.1
Fwd EY7.79%
FCF(TTM)3.42
FCFY12.72%
OCF(TTM)3.83
OCFY14.24%
SpS13.1
BVpS9.38
TBVpS-14.48
PEG (NY)5.61
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.89% | ||
| ROCE | 11.48% | ||
| ROIC | 8.24% | ||
| ROICexc | 8.47% | ||
| ROICexgc | N/A | ||
| OM | 21.36% | ||
| PM (TTM) | 8.51% | ||
| GM | 68.6% | ||
| FCFM | 26.12% |
ROA(3y)9.77%
ROA(5y)9.85%
ROE(3y)19.3%
ROE(5y)18.41%
ROIC(3y)12.69%
ROIC(5y)12.36%
ROICexc(3y)15.05%
ROICexc(5y)14.69%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.69%
ROCE(5y)17.23%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.25%
ROICexc growth 5Y-11.43%
OM growth 3Y-0.14%
OM growth 5Y3.16%
PM growth 3Y-8.6%
PM growth 5Y-5.65%
GM growth 3Y-1.62%
GM growth 5Y-1.1%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 28.07% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 90% | ||
| Profit Quality | 306.84% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.99 |
F-Score6
WACC7.2%
ROIC/WACC1.14
Cap/Depr(3y)262%
Cap/Depr(5y)164.4%
Cap/Sales(3y)24.91%
Cap/Sales(5y)15.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.66%
EPS 3Y10.83%
EPS 5Y11.5%
EPS Q2Q%-50%
EPS Next Y4.24%
EPS Next 2Y13.74%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y16.21%
Revenue growth 5Y12.49%
Sales Q2Q%11.58%
Revenue Next Year18.86%
Revenue Next 2Y12.72%
Revenue Next 3Y10.26%
Revenue Next 5YN/A
EBIT growth 1Y26.81%
EBIT growth 3Y16.04%
EBIT growth 5Y16.04%
EBIT Next Year83.93%
EBIT Next 3Y26.16%
EBIT Next 5YN/A
FCF growth 1Y55.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.91%
OCF growth 3Y11.28%
OCF growth 5Y13.63%