INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
NASDAQ:III - US45675Y1047 - Common Stock
5.29 USD
+0.12 (+2.32%)
5.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to III. III was compared to 85 industry peers in the IT Services industry. III has an excellent financial health rating, but there are some minor concerns on its profitability. III has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
III had positive earnings in the past year.
III had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.92%, III is doing good in the industry, outperforming 63.53% of the companies in the same industry.
III has a better Return On Equity (8.35%) than 63.53% of its industry peers.
With a Return On Invested Capital value of 4.78%, III perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for III is significantly below the industry average of 21.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 8.35% | ||
| ROIC | 4.78% |
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
Looking at the Profit Margin, with a value of 3.27%, III is in line with its industry, outperforming 55.29% of the companies in the same industry.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin (5.22%) which is in line with its industry peers.
III's Operating Margin has declined in the last couple of years.
III's Gross Margin of 41.77% is fine compared to the rest of the industry. III outperforms 61.18% of its industry peers.
III's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 3.27% | ||
| GM | 41.77% |
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.
Compared to 1 year ago, III has less shares outstanding
Compared to 5 years ago, III has more shares outstanding
The debt/assets ratio for III has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that III is not a great score, but indicates only limited risk for bankruptcy at the moment.
III's Altman-Z score of 2.45 is in line compared to the rest of the industry. III outperforms 45.88% of its industry peers.
The Debt to FCF ratio of III is 2.31, which is a good value as it means it would take III, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, III is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that III is somewhat dependend on debt financing.
III has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for III, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.54
WACC8.79%
2.3 Liquidity
III has a Current Ratio of 2.43. This indicates that III is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.43, III is doing good in the industry, outperforming 74.12% of the companies in the same industry.
A Quick Ratio of 2.43 indicates that III has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.43, III is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
III shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
III shows a decrease in Revenue. In the last year, the revenue decreased by -9.86%.
III shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.41% yearly.
EPS 1Y (TTM)0%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
Revenue 1Y (TTM)-9.86%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-4.2%
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 32.95% on average per year.
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.52% yearly.
EPS Next Y48.97%
EPS Next 2Y32.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.94%
Revenue Next 2Y1.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.35, the valuation of III can be described as rather expensive.
Based on the Price/Earnings ratio, III is valued a bit cheaper than 65.88% of the companies in the same industry.
III's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 14.96, III is valued correctly.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 71.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, III is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 14.96 |
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 91.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 16.12 |
4.3 Compensation for Growth
The 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 32.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y32.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
III has a Yearly Dividend Yield of 3.52%.
Compared to an average industry Dividend Yield of 2.38, 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 2.32, III pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 146.02% of its income as dividend. This is not a sustainable payout ratio.
DP146.02%
EPS Next 2Y32.95%
EPS Next 3YN/A
5.29
+0.12 (+2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners61.72%
Inst Owner Change6.41%
Ins Owners15.94%
Ins Owner Change1.3%
Market Cap254.98M
Analysts85.71
Price Target5.99 (13.23%)
Short Float %0.78%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP146.02%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.76%
Min EPS beat(2)15.51%
Max EPS beat(2)20.01%
EPS beat(4)3
Avg EPS beat(4)10.68%
Min EPS beat(4)-11.6%
Max EPS beat(4)20.01%
EPS beat(8)5
Avg EPS beat(8)-3.29%
EPS beat(12)9
Avg EPS beat(12)4.74%
EPS beat(16)13
Avg EPS beat(16)14.39%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.77%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.7%
Revenue beat(12)5
Avg Revenue beat(12)-1.17%
Revenue beat(16)8
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)10.59%
EPS NQ rev (1m)7.64%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)3.87%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.06 | ||
| P/FCF | 9.94 | ||
| P/OCF | 9.03 | ||
| P/B | 2.71 | ||
| P/tB | 70.13 | ||
| EV/EBITDA | 16.12 |
EPS(TTM)0.26
EY4.91%
EPS(NY)0.35
Fwd EY6.68%
FCF(TTM)0.53
FCFY10.06%
OCF(TTM)0.59
OCFY11.08%
SpS4.98
BVpS1.95
TBVpS0.08
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 8.35% | ||
| ROCE | 7.68% | ||
| ROIC | 4.78% | ||
| ROICexc | 5.66% | ||
| ROICexgc | 16.44% | ||
| OM | 5.22% | ||
| PM (TTM) | 3.27% | ||
| GM | 41.77% | ||
| FCFM | 10.68% |
ROA(3y)3.99%
ROA(5y)3.94%
ROE(3y)9.53%
ROE(5y)9.44%
ROIC(3y)5.43%
ROIC(5y)5.93%
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-Score9
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 51.58% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 160.77% | ||
| Profit Quality | 326.29% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | 2.45 |
F-Score9
WACC8.79%
ROIC/WACC0.54
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)0%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%0%
EPS Next Y48.97%
EPS Next 2Y32.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.86%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-4.2%
Revenue Next Year-1.94%
Revenue Next 2Y1.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y215.34%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year340.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y661.13%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y399.03%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%