INFORMATION SERVICES GROUP (III)
US45675Y1047 - Common Stock
Overall III gets a fundamental rating of 4 out of 10. We evaluated III against 86 industry peers in the IT Services industry. Both the profitability and the financial health of III get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year III had a positive cash flow from operations.
In the past 5 years III has always been profitable.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
III's Return On Assets of 2.49% is in line compared to the rest of the industry. III outperforms 59.52% of its industry peers.
Looking at the Return On Equity, with a value of 6.02%, III is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
III has a Return On Invested Capital of 5.23%. This is comparable to the rest of the industry: III outperforms 59.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for III is below the industry average of 12.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 6.02% | ||
| ROIC | 5.23% |
ROA(3y)5.71%
ROA(5y)3.96%
ROE(3y)13.8%
ROE(5y)9.58%
ROIC(3y)9.13%
ROIC(5y)7.45%
1.3 Margins
III has a Profit Margin of 2.11%. This is comparable to the rest of the industry: III outperforms 55.95% of its industry peers.
In the last couple of years the Profit Margin of III has remained more or less at the same level.
III has a Operating Margin (5.02%) which is comparable to the rest of the industry.
III's Operating Margin has improved in the last couple of years.
The Gross Margin of III (38.53%) is better than 61.90% of its industry peers.
In the last couple of years the Gross Margin of III has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.02% | ||
| PM (TTM) | 2.11% | ||
| GM | 38.53% |
OM growth 3Y2.77%
OM growth 5Y1.88%
PM growth 3Y23.44%
PM growth 5Y0.46%
GM growth 3Y-1.13%
GM growth 5Y-1.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
Compared to 1 year ago, III has more shares outstanding
Compared to 5 years ago, III has more shares outstanding
III has a better debt/assets ratio than last year.
2.2 Solvency
III has an Altman-Z score of 1.80. This is a bad value and indicates that III is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of III (1.80) is comparable to the rest of the industry.
III has a debt to FCF ratio of 8.96. This is a slightly negative value and a sign of low solvency as III would need 8.96 years to pay back of all of its debts.
III has a Debt to FCF ratio of 8.96. This is comparable to the rest of the industry: III outperforms 46.43% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that III is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, III is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.96 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.5
WACC10.47%
2.3 Liquidity
A Current Ratio of 2.44 indicates that III has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.44, III is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 2.44 indicates that III has no problem at all paying its short term obligations.
III has a better Quick ratio (2.44) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 |
3. Growth
3.1 Past
III shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.08%.
Measured over the past 5 years, III shows a small growth in Earnings Per Share. The EPS has been growing by 2.13% on average per year.
III shows a small growth in Revenue. In the last year, the Revenue has grown by 1.67%.
III shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.08% yearly.
EPS 1Y (TTM)-23.08%
EPS 3Y12.62%
EPS 5Y2.13%
EPS growth Q2Q-53.85%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y5.33%
Revenue growth 5Y1.08%
Revenue growth Q2Q-10.76%
3.2 Future
III is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.60% yearly.
The Revenue is expected to grow by 0.69% on average over the next years.
EPS Next Y-13.64%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.28%
Revenue Next 2Y0.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.63, the valuation of III can be described as very reasonable.
III's Price/Earnings ratio is rather cheap when compared to the industry. III is cheaper than 94.05% of the companies in the same industry.
III is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
III is valuated reasonably with a Price/Forward Earnings ratio of 9.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of III indicates a rather cheap valuation: III is cheaper than 90.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of III to the average of the S&P500 Index (21.35), we can say III is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 9.99 |
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 69.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, III is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.87 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.05
EPS Next 2Y6.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.16%, III is a good candidate for dividend investing.
The stock price of III dropped by -26.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
III's Dividend Yield is rather good when compared to the industry average which is at 2.81. III pays more dividend than 97.62% of the companies in the same industry.
III's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
5.2 History
III has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
141.28% of the earnings are spent on dividend by III. This is not a sustainable payout ratio.
DP141.28%
EPS Next 2Y6.6%
EPS Next 3YN/A
INFORMATION SERVICES GROUP
NASDAQ:III (4/26/2024, 7:00:02 PM)
After market: 3.45 0 (0%)3.45
-0.04 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap166.77M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 9.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 6.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.02% | ||
| PM (TTM) | 2.11% | ||
| GM | 38.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.08%
EPS 3Y12.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.67%
Revenue growth 3Y5.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y