INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
USA - NASDAQ:III - US45675Y1047 - Common Stock
5.14 USD
-0.11 (-2.1%)
5.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to III. III was compared to 85 industry peers in the IT Services industry. While III has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on III. This makes III very considerable for value investing!
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.
III had positive earnings in each of the past 5 years.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.58%, III is doing good in the industry, outperforming 65.88% of the companies in the same industry.
III has a better Return On Equity (10.32%) than 65.88% of its industry peers.
III's Return On Invested Capital of 4.68% is in line compared to the rest of the industry. III outperforms 55.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for III is significantly below the industry average of 30.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROIC | 4.68% |
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 has a better Profit Margin (4.05%) than 61.18% of its industry peers.
III's Profit Margin has declined in the last couple of years.
The Operating Margin of III (5.32%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of III has declined.
III has a Gross Margin of 42.24%. This is in the better half of the industry: III outperforms 63.53% of its industry peers.
In the last couple of years the Gross Margin of III has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.32% | ||
| PM (TTM) | 4.05% | ||
| GM | 42.24% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so III is destroying value.
III has less shares outstanding than it did 1 year ago.
III has more shares outstanding than it did 5 years ago.
III has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.26, III perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
III has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as III would need 2.22 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.22, III is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
III has a Debt/Equity ratio of 0.63. This is a neutral value indicating III is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, III is in line with its industry, outperforming 41.18% of the companies in the same industry.
Although III does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.55
WACC8.49%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.22, III is doing good in the industry, outperforming 64.71% of the companies in the same industry.
III has a Quick Ratio of 2.22. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
III has a Quick ratio of 2.22. This is in the better half of the industry: III outperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
III shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
III shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.16% yearly.
Looking at the last year, III shows a decrease in Revenue. The Revenue has decreased by -5.74% in the last year.
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%80%
Revenue 1Y (TTM)-5.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%1.77%
3.2 Future
Based on estimates for the next years, III will show a very strong growth in Earnings Per Share. The EPS will grow by 33.70% on average per year.
Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y53.52%
EPS Next 2Y33.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.47%
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
With a Price/Earnings ratio of 17.13, III is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of III indicates a somewhat cheap valuation: III is cheaper than 68.24% of the companies listed in the same industry.
III's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
III is valuated correctly with a Price/Forward Earnings ratio of 14.38.
75.29% of the companies in the same industry are more expensive than III, based on the Price/Forward Earnings ratio.
III is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of III indicates a somewhat cheap valuation: III is cheaper than 61.18% of the companies listed in the same industry.
III's Price/Free Cash Flow ratio is rather cheap when compared to the industry. III is cheaper than 89.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.28 | ||
| EV/EBITDA | 15.98 |
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.
A more expensive valuation may be justified as III's earnings are expected to grow with 33.70% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.00, III pays a better dividend. On top of this III pays more dividend than 97.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 117.63% of its income as dividend. This is not a sustainable payout ratio.
DP117.63%
EPS Next 2Y33.7%
EPS Next 3YN/A
5.14
-0.11 (-2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change4.11%
Ins Owners15.88%
Ins Owner Change-3.47%
Market Cap247.75M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target6.69 (30.16%)
Short Float %1.65%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP117.63%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.7%
Min EPS beat(2)11.39%
Max EPS beat(2)20.01%
EPS beat(4)4
Avg EPS beat(4)16.43%
Min EPS beat(4)11.39%
Max EPS beat(4)20.01%
EPS beat(8)5
Avg EPS beat(8)-2.98%
EPS beat(12)9
Avg EPS beat(12)1.54%
EPS beat(16)13
Avg EPS beat(16)12.35%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.27%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.59%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.62%
Revenue beat(16)8
Avg Revenue beat(16)-0.87%
PT rev (1m)0%
PT rev (3m)11.7%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 14.38 | ||
| P/S | 1.03 | ||
| P/FCF | 9.28 | ||
| P/OCF | 8.12 | ||
| P/B | 2.62 | ||
| P/tB | 142.38 | ||
| EV/EBITDA | 15.98 |
EPS(TTM)0.3
EY5.84%
EPS(NY)0.36
Fwd EY6.96%
FCF(TTM)0.55
FCFY10.78%
OCF(TTM)0.63
OCFY12.31%
SpS5.01
BVpS1.96
TBVpS0.04
PEG (NY)0.32
PEG (5Y)N/A
Graham Number3.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROCE | 7.52% | ||
| ROIC | 4.68% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 16.29% | ||
| OM | 5.32% | ||
| PM (TTM) | 4.05% | ||
| GM | 42.24% | ||
| FCFM | 11.07% |
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%
ROICexgc growth 3Y-51.07%
ROICexgc 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-Score9
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 82.94% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 175.21% | ||
| Profit Quality | 273.39% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 | ||
| Altman-Z | 2.26 |
F-Score9
WACC8.49%
ROIC/WACC0.55
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%80%
EPS Next Y53.52%
EPS Next 2Y33.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%1.77%
Revenue Next Year-1.79%
Revenue Next 2Y1.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y525.95%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year371.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y298.02%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y233%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%
INFORMATION SERVICES GROUP / III FAQ
What is the fundamental rating for III stock?
ChartMill assigns a fundamental rating of 6 / 10 to III.
Can you provide the valuation status for INFORMATION SERVICES GROUP?
ChartMill assigns a valuation rating of 7 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Undervalued.
How profitable is INFORMATION SERVICES GROUP (III) stock?
INFORMATION SERVICES GROUP (III) has a profitability rating of 5 / 10.
What is the valuation of INFORMATION SERVICES GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INFORMATION SERVICES GROUP (III) is 17.13 and the Price/Book (PB) ratio is 2.62.
Can you provide the dividend sustainability for III stock?
The dividend rating of INFORMATION SERVICES GROUP (III) is 4 / 10 and the dividend payout ratio is 117.63%.