INFORMATION SERVICES GROUP (III) Fundamental Analysis & Valuation
NASDAQ:III • US45675Y1047
Current stock price
4.11 USD
+0.03 (+0.74%)
At close:
4.12 USD
+0.01 (+0.24%)
After Hours:
This III fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. III Profitability Analysis
1.1 Basic Checks
- III had positive earnings in the past year.
- In the past year III had a positive cash flow from operations.
- In the past 5 years III has always been profitable.
- III had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.43%, III is in the better half of the industry, outperforming 62.92% of the companies in the same industry.
- III has a better Return On Equity (9.87%) than 66.29% of its industry peers.
- III has a Return On Invested Capital (6.18%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for III is significantly below the industry average of 11.54%.
- The last Return On Invested Capital (6.18%) for III is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.87% | ||
| ROIC | 6.18% |
ROA(3y)2.77%
ROA(5y)4.59%
ROE(3y)6.28%
ROE(5y)10.84%
ROIC(3y)4.19%
ROIC(5y)6.16%
1.3 Margins
- III has a Profit Margin (3.82%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of III has grown nicely.
- Looking at the Operating Margin, with a value of 7.27%, III is in the better half of the industry, outperforming 61.80% of the companies in the same industry.
- In the last couple of years the Operating Margin of III has grown nicely.
- III's Gross Margin of 43.07% is fine compared to the rest of the industry. III outperforms 67.42% of its industry peers.
- III's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 3.82% | ||
| GM | 43.07% |
OM growth 3Y-10.97%
OM growth 5Y9.32%
PM growth 3Y-17.83%
PM growth 5Y27.7%
GM growth 3Y1.88%
GM growth 5Y1.56%
2. III Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so III is destroying value.
- The number of shares outstanding for III has been reduced compared to 1 year ago.
- The number of shares outstanding for III has been reduced compared to 5 years ago.
- III has a better debt/assets ratio than last year.
2.2 Solvency
- III has an Altman-Z score of 2.15. This is not the best score and indicates that III is in the grey zone with still only limited risk for bankruptcy at the moment.
- III has a Altman-Z score of 2.15. This is comparable to the rest of the industry: III outperforms 42.70% of its industry peers.
- The Debt to FCF ratio of III is 2.37, which is a good value as it means it would take III, 2.37 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.37, III is in the better half of the industry, outperforming 68.54% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.63, III perfoms like the industry average, outperforming 43.82% of the companies in the same industry.
- Although III's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 2.37 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.63
WACC9.85%
2.3 Liquidity
- A Current Ratio of 2.34 indicates that III has no problem at all paying its short term obligations.
- III has a Current ratio of 2.34. This is in the better half of the industry: III outperforms 65.17% of its industry peers.
- A Quick Ratio of 2.34 indicates that III has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.34, III is doing good in the industry, outperforming 66.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 |
3. III Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 60.00% over the past year.
- Measured over the past 5 years, III shows a small growth in Earnings Per Share. The EPS has been growing by 2.71% on average per year.
- III shows a decrease in Revenue. In the last year, the revenue decreased by -1.16%.
- Measured over the past years, III shows a decrease in Revenue. The Revenue has been decreasing by -0.35% on average per year.
EPS 1Y (TTM)60%
EPS 3Y-14.94%
EPS 5Y2.71%
EPS Q2Q%33.33%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-5.1%
Revenue growth 5Y-0.35%
Sales Q2Q%5.95%
3.2 Future
- The Earnings Per Share is expected to grow by 15.96% on average over the next years. This is quite good.
- Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
EPS Next Y11.73%
EPS Next 2Y15.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.87%
Revenue Next 2Y3.6%
Revenue Next 3Y4.81%
Revenue Next 5Y5.52%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. III Valuation Analysis
4.1 Price/Earnings Ratio
- III is valuated correctly with a Price/Earnings ratio of 12.84.
- Based on the Price/Earnings ratio, III is valued a bit cheaper than the industry average as 67.42% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.64. III is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.50, which indicates a very decent valuation of III.
- III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 70.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, III is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.5 |
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 70.79% of the companies listed in the same industry.
- 91.01% of the companies in the same industry are more expensive than III, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.84 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
- III's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of III may justify a higher PE ratio.
- III's earnings are expected to grow with 15.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)4.75
EPS Next 2Y15.96%
EPS Next 3YN/A
5. III Dividend Analysis
5.1 Amount
- III has a Yearly Dividend Yield of 4.41%, which is a nice return.
- In the last 3 months the price of III has falen by -26.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- III's Dividend Yield is rather good when compared to the industry average which is at 1.21. III pays more dividend than 96.63% of the companies in the same industry.
- III's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
- On average, the dividend of III grows each year by 6.33%, which is quite nice.
- 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)6.33%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- III pays out 98.31% of its income as dividend. This is not a sustainable payout ratio.
- III's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.31%
EPS Next 2Y15.96%
EPS Next 3YN/A
III Fundamentals: All Metrics, Ratios and Statistics
4.11
+0.03 (+0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry Strength4.35
Industry Growth21.74
Earnings (Last)03-05 2026-03-05/amc
Earnings (Next)05-07 2026-05-07/amc
Inst Owners70.32%
Inst Owner Change-0.75%
Ins Owners16.21%
Ins Owner Change-0.02%
Market Cap195.92M
Revenue(TTM)244.72M
Net Income(TTM)9.34M
Analysts85.71
Price Target6.95 (69.1%)
Short Float %1.82%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend0.19
Dividend Growth(5Y)6.33%
DP98.31%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-20 2026-03-20 (0.045)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.8%
Min EPS beat(2)4.22%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)12.78%
Min EPS beat(4)4.22%
Max EPS beat(4)20.01%
EPS beat(8)6
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)1.1%
EPS beat(16)13
Avg EPS beat(16)11.13%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.27%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)1.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.71%
Revenue beat(16)7
Avg Revenue beat(16)-1.02%
PT rev (1m)0%
PT rev (3m)-5.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.8 | ||
| P/FCF | 7.84 | ||
| P/OCF | 6.75 | ||
| P/B | 2.07 | ||
| P/tB | 98.16 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)0.32
EY7.79%
EPS(NY)0.36
Fwd EY8.7%
FCF(TTM)0.52
FCFY12.75%
OCF(TTM)0.61
OCFY14.81%
SpS5.13
BVpS1.99
TBVpS0.04
PEG (NY)1.09
PEG (5Y)4.75
Graham Number3.7815 (-7.99%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.87% | ||
| ROCE | 10.42% | ||
| ROIC | 6.18% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 21.31% | ||
| OM | 7.27% | ||
| PM (TTM) | 3.82% | ||
| GM | 43.07% | ||
| FCFM | 10.21% |
ROA(3y)2.77%
ROA(5y)4.59%
ROE(3y)6.28%
ROE(5y)10.84%
ROIC(3y)4.19%
ROIC(5y)6.16%
ROICexc(3y)4.9%
ROICexc(5y)7.58%
ROICexgc(3y)13.52%
ROICexgc(5y)26.04%
ROCE(3y)7.07%
ROCE(5y)10.38%
ROICexgc growth 3Y-14.22%
ROICexgc growth 5Y3.86%
ROICexc growth 3Y-11.89%
ROICexc growth 5Y9.38%
OM growth 3Y-10.97%
OM growth 5Y9.32%
PM growth 3Y-17.83%
PM growth 5Y27.7%
GM growth 3Y1.88%
GM growth 5Y1.56%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 88.63% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 129.9% | ||
| Profit Quality | 267.52% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 2.15 |
F-Score7
WACC9.85%
ROIC/WACC0.63
Cap/Depr(3y)63.85%
Cap/Depr(5y)59.75%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.2%
Profit Quality(3y)337.06%
Profit Quality(5y)261.21%
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3Y-14.94%
EPS 5Y2.71%
EPS Q2Q%33.33%
EPS Next Y11.73%
EPS Next 2Y15.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-5.1%
Revenue growth 5Y-0.35%
Sales Q2Q%5.95%
Revenue Next Year2.87%
Revenue Next 2Y3.6%
Revenue Next 3Y4.81%
Revenue Next 5Y5.52%
EBIT growth 1Y209.1%
EBIT growth 3Y-15.5%
EBIT growth 5Y8.94%
EBIT Next Year90.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.69%
FCF growth 3Y47.86%
FCF growth 5Y-10.2%
OCF growth 1Y46.04%
OCF growth 3Y37.54%
OCF growth 5Y-7.98%
INFORMATION SERVICES GROUP / III Fundamental Analysis FAQ
What is the fundamental rating for III stock?
ChartMill assigns a fundamental rating of 6 / 10 to III.
What is the valuation status for III stock?
ChartMill assigns a valuation rating of 7 / 10 to INFORMATION SERVICES GROUP (III). This can be considered as Undervalued.
Can you provide the profitability details for INFORMATION SERVICES GROUP?
INFORMATION SERVICES GROUP (III) has a profitability rating of 7 / 10.
How financially healthy is INFORMATION SERVICES GROUP?
The financial health rating of INFORMATION SERVICES GROUP (III) is 7 / 10.
How sustainable is the dividend of INFORMATION SERVICES GROUP (III) stock?
The dividend rating of INFORMATION SERVICES GROUP (III) is 7 / 10 and the dividend payout ratio is 98.31%.