INFORMATION SERVICES CORP (ISV.CA) Stock Fundamental Analysis
TSX:ISV - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to ISV. ISV was compared to 30 industry peers in the Real Estate Management & Development industry. While ISV has a great profitability rating, there are quite some concerns on its financial health. ISV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ISV was profitable.
In the past year ISV had a positive cash flow from operations.
In the past 5 years ISV has always been profitable.
ISV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ISV's Return On Assets of 3.99% is amongst the best of the industry. ISV outperforms 86.21% of its industry peers.
Looking at the Return On Equity, with a value of 11.89%, ISV belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
ISV has a Return On Invested Capital of 8.24%. This is amongst the best in the industry. ISV outperforms 93.10% of its industry peers.
ISV had an Average Return On Invested Capital over the past 3 years of 12.69%. This is significantly above the industry average of 7.11%.
The 3 year average ROIC (12.69%) for ISV is well above the current ROIC(8.24%). The reason for the recent decline needs to be investigated.
| 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
ISV's Profit Margin of 8.51% is fine compared to the rest of the industry. ISV outperforms 79.31% of its industry peers.
In the last couple of years the Profit Margin of ISV has declined.
With a Operating Margin value of 21.36%, ISV perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
ISV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 68.60%, ISV belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
In the last couple of years the Gross Margin of ISV has remained more or less at the same level.
| 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 ISV is still creating some value.
ISV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ISV has been increased compared to 5 years ago.
Compared to 1 year ago, ISV has a worse debt to assets ratio.
2.2 Solvency
ISV has an Altman-Z score of 1.99. This is not the best score and indicates that ISV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, ISV is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
The Debt to FCF ratio of ISV is 2.92, which is a good value as it means it would take ISV, 2.92 years of fcf income to pay off all of its debts.
ISV has a better Debt to FCF ratio (2.92) than 93.10% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ISV has dependencies on debt financing.
With a Debt to Equity ratio value of 1.06, ISV perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.15
WACC7.19%
2.3 Liquidity
A Current Ratio of 0.61 indicates that ISV may have some problems paying its short term obligations.
With a Current ratio value of 0.61, ISV is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
ISV has a Quick Ratio of 0.61. This is a bad value and indicates that ISV is not financially healthy enough and could expect problems in meeting its short term obligations.
ISV has a Quick ratio of 0.61. This is in the lower half of the industry: ISV underperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
ISV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.66%.
Measured over the past years, ISV 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
ISV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.70% yearly.
Based on estimates for the next years, ISV will show a quite strong growth in Revenue. The Revenue will grow by 10.00% on average per year.
EPS Next Y-21.74%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year18.25%
Revenue Next 2Y12.7%
Revenue Next 3Y10%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 23.81 indicates a rather expensive valuation of ISV.
75.86% of the companies in the same industry are more expensive than ISV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ISV to the average of the S&P500 Index (29.63), we can say ISV is valued inline with the index average.
The Price/Forward Earnings ratio is 14.34, which indicates a correct valuation of ISV.
Based on the Price/Forward Earnings ratio, ISV is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ISV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ISV indicates a rather cheap valuation: ISV is cheaper than 96.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ISV indicates a rather cheap valuation: ISV is cheaper than 86.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
ISV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.07
EPS Next 2Y7.64%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
ISV has a Yearly Dividend Yield of 3.38%.
Compared to an average industry Dividend Yield of 3.36, ISV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ISV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of ISV has a limited annual growth rate of 2.75%.
ISV has paid a dividend for at least 10 years, which is a reliable track record.
ISV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.75%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
ISV pays out 80.45% of its income as dividend. This is not a sustainable payout ratio.
ISV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.45%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
TSX:ISV (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 OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap495.95M
Analysts77.78
Price Target35.09 (30.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend0.92
Dividend Growth(5Y)2.75%
DP80.45%
Div Incr Years1
Div Non Decr Years11
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 14.34 | ||
| P/S | 2.04 | ||
| P/FCF | 7.82 | ||
| P/OCF | 6.99 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)1.13
EY4.2%
EPS(NY)1.88
Fwd EY6.97%
FCF(TTM)3.44
FCFY12.78%
OCF(TTM)3.85
OCFY14.31%
SpS13.17
BVpS9.43
TBVpS-14.55
PEG (NY)N/A
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
WACC7.19%
ROIC/WACC1.15
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 Y-21.74%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y16.21%
Revenue growth 5Y12.49%
Sales Q2Q%11.58%
Revenue Next Year18.25%
Revenue Next 2Y12.7%
Revenue Next 3Y10%
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%