INFORMATION SERVICES CORP (ISV.CA) Stock Fundamental Analysis
TSX:ISV - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
Taking everything into account, ISV scores 6 out of 10 in our fundamental rating. ISV was compared to 26 industry peers in the Real Estate Management & Development industry. ISV scores excellent on profitability, but there are some minor concerns on its financial health. ISV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ISV was profitable.
ISV had a positive operating cash flow in the past year.
In the past 5 years ISV has always been profitable.
In the past 5 years ISV always reported a positive cash flow from operatings.
1.2 Ratios
ISV has a better Return On Assets (3.99%) than 78.13% of its industry peers.
ISV has a Return On Equity of 11.89%. This is amongst the best in the industry. ISV outperforms 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.24%, ISV belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
ISV had an Average Return On Invested Capital over the past 3 years of 12.69%. This is above the industry average of 8.58%.
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 has a better Profit Margin (8.51%) than 68.75% 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 46.88% of the companies in the same industry.
In the last couple of years the Operating Margin of ISV has grown nicely.
With an excellent Gross Margin value of 68.60%, ISV belongs to the best of the industry, outperforming 84.38% 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
ISV 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 ISV has been increased compared to 1 year ago.
Compared to 5 years ago, ISV has more shares outstanding
Compared to 1 year ago, ISV has a worse debt to assets ratio.
2.2 Solvency
ISV has an Altman-Z score of 1.92. 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.
ISV has a better Altman-Z score (1.92) than 68.75% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.92, ISV belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ISV has dependencies on debt financing.
ISV's Debt to Equity ratio of 1.06 is in line compared to the rest of the industry. ISV outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.14
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.61 indicates that ISV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, ISV is in line with its industry, outperforming 43.75% of the companies in the same industry.
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.
With a Quick ratio value of 0.61, ISV perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ISV have decreased strongly by -25.66% in the last year.
The Earnings Per Share has been growing by 11.50% on average over the past years. This is quite good.
The Revenue has grown by 19.46% in the past year. This is quite good.
Measured over the past years, ISV shows a quite strong growth in Revenue. The Revenue has been growing by 12.49% on average per year.
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, ISV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.70% on average per year.
ISV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.00% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.87, which indicates a rather expensive current valuation of ISV.
ISV's Price/Earnings ratio is a bit cheaper when compared to the industry. ISV is cheaper than 65.63% of the companies in the same industry.
ISV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 13.17, ISV is valued correctly.
84.38% of the companies in the same industry are more expensive than ISV, based on the Price/Forward Earnings ratio.
ISV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISV is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ISV is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
ISV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y7.64%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
ISV has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
ISV's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.37, 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
80.45% of the earnings are spent on dividend by ISV. 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 (3/12/2025, 7:00:00 PM)
24.71
-0.29 (-1.16%)
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 Cap455.41M
Analysts77.78
Price Target35.09 (42.01%)
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)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.88 | ||
| P/FCF | 7.18 | ||
| P/OCF | 6.42 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)1.13
EY4.57%
EPS(NY)1.88
Fwd EY7.6%
FCF(TTM)3.44
FCFY13.92%
OCF(TTM)3.85
OCFY15.59%
SpS13.17
BVpS9.43
TBVpS-14.55
PEG (NY)N/A
PEG (5Y)1.9
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 | 1.92 |
F-Score6
WACC7.25%
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 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%