INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
NASDAQ:III - Nasdaq - US45675Y1047 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to III. III was compared to 82 industry peers in the IT Services industry. III has an average financial health and profitability rating. III has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year III was profitable.
In the past year III had a positive cash flow from operations.
Each year in the past 5 years III has been profitable.
Each year in the past 5 years III had a positive operating cash flow.
1.2 Ratios
III has a Return On Assets (1.39%) which is in line with its industry peers.
III has a Return On Equity (2.95%) which is in line with its industry peers.
The Return On Invested Capital of III (2.16%) is comparable to the rest of the industry.
III had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 22.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.95% | ||
| ROIC | 2.16% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
1.3 Margins
III's Profit Margin of 1.15% is in line compared to the rest of the industry. III outperforms 50.00% of its industry peers.
III's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.33%, III is in line with its industry, outperforming 47.56% of the companies in the same industry.
III's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 39.29%, III perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
III's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.33% | ||
| PM (TTM) | 1.15% | ||
| GM | 39.29% |
OM growth 3Y-38.37%
OM growth 5Y-14.34%
PM growth 3Y-40.99%
PM growth 5Y-1.58%
GM growth 3Y-0.08%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
III has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
III has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, III has more shares outstanding
Compared to 1 year ago, III has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of III (1.97) is comparable to the rest of the industry.
The Debt to FCF ratio of III is 3.47, which is a good value as it means it would take III, 3.47 years of fcf income to pay off all of its debts.
III has a Debt to FCF ratio (3.47) which is in line with its industry peers.
A Debt/Equity ratio of 0.61 indicates that III is somewhat dependend on debt financing.
III's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. III outperforms 42.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.24
WACC8.87%
2.3 Liquidity
A Current Ratio of 2.38 indicates that III has no problem at all paying its short term obligations.
III has a Current ratio of 2.38. This is in the better half of the industry: III outperforms 74.39% of its industry peers.
A Quick Ratio of 2.38 indicates that III has no problem at all paying its short term obligations.
III's Quick ratio of 2.38 is fine compared to the rest of the industry. III outperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
III shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
The Revenue for III has decreased by -14.94% in the past year. This is quite bad
Measured over the past years, III shows a decrease in Revenue. The Revenue has been decreasing by -1.41% on average per year.
EPS 1Y (TTM)-50%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
Revenue 1Y (TTM)-14.94%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-12.71%
3.2 Future
The Earnings Per Share is expected to grow by 33.58% on average over the next years. This is a very strong growth
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.09% yearly.
EPS Next Y33.32%
EPS Next 2Y33.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.85%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.85, which indicates a rather expensive current valuation of III.
63.41% of the companies in the same industry are more expensive than III, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of III to the average of the S&P500 Index (24.29), we can say III is valued inline with the index average.
The Price/Forward Earnings ratio is 14.89, which indicates a correct valuation of III.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 78.05% of the companies in the same industry.
III's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of III is on the same level as its industry peers.
III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 19.14 |
4.3 Compensation for Growth
III's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
III's earnings are expected to grow with 33.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y33.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 4.74%, which is a nice return.
III's Dividend Yield is rather good when compared to the industry average which is at 2.46. III pays more dividend than 98.78% of the companies in the same industry.
III's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
III has been paying a dividend for over 5 years, so it has already some track record.
III has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
III pays out 330.86% of its income as dividend. This is not a sustainable payout ratio.
DP330.86%
EPS Next 2Y33.58%
EPS Next 3YN/A
3.97
+0.1 (+2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners59.8%
Inst Owner Change-0.02%
Ins Owners16.09%
Ins Owner Change0.56%
Market Cap191.59M
Analysts85.71
Price Target5.42 (36.52%)
Short Float %0.71%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP330.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.61%
Min EPS beat(2)-11.6%
Max EPS beat(2)18.81%
EPS beat(4)2
Avg EPS beat(4)-7.93%
Min EPS beat(4)-82.93%
Max EPS beat(4)44.01%
EPS beat(8)5
Avg EPS beat(8)-4.75%
EPS beat(12)9
Avg EPS beat(12)10.58%
EPS beat(16)13
Avg EPS beat(16)21.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)0.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.58%
Revenue beat(16)8
Avg Revenue beat(16)-0.1%
PT rev (1m)0%
PT rev (3m)-2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 14.89 | ||
| P/S | 0.77 | ||
| P/FCF | 11.25 | ||
| P/OCF | 9.64 | ||
| P/B | 1.99 | ||
| P/tB | 35.26 | ||
| EV/EBITDA | 19.14 |
EPS(TTM)0.2
EY5.04%
EPS(NY)0.27
Fwd EY6.72%
FCF(TTM)0.35
FCFY8.89%
OCF(TTM)0.41
OCFY10.37%
SpS5.13
BVpS2
TBVpS0.11
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.95% | ||
| ROCE | 3.47% | ||
| ROIC | 2.16% | ||
| ROICexc | 2.51% | ||
| ROICexgc | 6.87% | ||
| OM | 2.33% | ||
| PM (TTM) | 1.15% | ||
| GM | 39.29% | ||
| FCFM | 6.88% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
ROICexc(3y)6.35%
ROICexc(5y)7.4%
ROICexgc(3y)18.57%
ROICexgc(5y)26.58%
ROCE(3y)8.72%
ROCE(5y)9.53%
ROICexcg growth 3Y-51.07%
ROICexcg growth 5Y-13.92%
ROICexc growth 3Y-42.19%
ROICexc growth 5Y-13.71%
OM growth 3Y-38.37%
OM growth 5Y-14.34%
PM growth 3Y-40.99%
PM growth 5Y-1.58%
GM growth 3Y-0.08%
GM growth 5Y-1.49%
F-Score7
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 48.06% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 1 | ||
| Cash Conversion | 170.59% | ||
| Profit Quality | 600.04% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 1.97 |
F-Score7
WACC8.87%
ROIC/WACC0.24
Cap/Depr(3y)55.54%
Cap/Depr(5y)45.84%
Cap/Sales(3y)1.17%
Cap/Sales(5y)0.97%
Profit Quality(3y)260.97%
Profit Quality(5y)513.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
EPS Next Y33.32%
EPS Next 2Y33.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.94%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-12.71%
Revenue Next Year-2.85%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-60.58%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year321.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y92.73%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y61.87%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%