INFORMATION SERVICES GROUP (III) Stock Fundamental Analysis
NASDAQ:III - Nasdaq - US45675Y1047 - Common Stock - Currency: USD
Overall III gets a fundamental rating of 5 out of 10. We evaluated III against 82 industry peers in the IT Services industry. III has only an average score on both its financial health and 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
In the past year III was profitable.
III had a positive operating cash flow in the past year.
Each year in the past 5 years III has been profitable.
In the past 5 years III always reported a positive cash flow from operatings.
1.2 Ratios
III has a Return On Assets (3.81%) which is in line with its industry peers.
The Return On Equity of III (8.12%) is comparable to the rest of the industry.
III has a Return On Invested Capital of 4.35%. This is comparable to the rest of the industry: III outperforms 53.66% 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 22.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 8.12% | ||
| ROIC | 4.35% |
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
The Profit Margin of III (3.18%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin (4.74%) which is in line with its industry peers.
In the last couple of years the Operating Margin of III has declined.
III's Gross Margin of 41.05% is fine compared to the rest of the industry. III outperforms 60.98% of its industry peers.
III's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | 3.18% | ||
| GM | 41.05% |
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
III has a better debt/assets ratio than last year.
2.2 Solvency
III has an Altman-Z score of 2.28. 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.
With a Altman-Z score value of 2.28, III perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
III has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as III would need 3.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.73, III perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that III is somewhat dependend on debt financing.
III has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: III outperforms 42.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.46
WACC9.5%
2.3 Liquidity
A Current Ratio of 2.42 indicates that III has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.42, III is doing good in the industry, outperforming 75.61% of the companies in the same industry.
A Quick Ratio of 2.42 indicates that III has no problem at all paying its short term obligations.
III has a Quick ratio of 2.42. This is in the better half of the industry: III outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
III shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
Measured over the past years, III shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.16% on average per year.
The Revenue for III has decreased by -12.26% 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)-10.34%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%600%
Revenue 1Y (TTM)-12.26%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-7.29%
3.2 Future
III is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.47% yearly.
The Revenue is expected to grow by 1.18% on average over the next years.
EPS Next Y42.41%
EPS Next 2Y32.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.55%
Revenue Next 2Y1.18%
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 18.15, 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 68.29% of the companies listed in the same industry.
III is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.45, III is valued correctly.
76.83% of the companies in the same industry are more expensive than III, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.15. III is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
63.41% of the companies in the same industry are more expensive than III, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of III indicates a rather cheap valuation: III is cheaper than 86.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 15.56 |
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 32.47% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y32.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, III has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, III pays a better dividend. On top of this III pays more dividend than 98.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, III pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 119.76% of its income as dividend. This is not a sustainable payout ratio.
DP119.76%
EPS Next 2Y32.47%
EPS Next 3YN/A
4.72
+0.04 (+0.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners59.8%
Inst Owner Change1.21%
Ins Owners16.09%
Ins Owner Change1%
Market Cap227.50M
Analysts85.71
Price Target5.42 (14.83%)
Short Float %0.89%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP119.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.16%
Min EPS beat(2)15.51%
Max EPS beat(2)18.81%
EPS beat(4)3
Avg EPS beat(4)16.68%
Min EPS beat(4)-11.6%
Max EPS beat(4)44.01%
EPS beat(8)5
Avg EPS beat(8)-3.81%
EPS beat(12)9
Avg EPS beat(12)7%
EPS beat(16)13
Avg EPS beat(16)17.89%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)0.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-1.74%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)2.41%
EPS NQ rev (1m)9.38%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)6.82%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 13.45 | ||
| P/S | 0.94 | ||
| P/FCF | 14.34 | ||
| P/OCF | 12.29 | ||
| P/B | 2.39 | ||
| P/tB | 51.36 | ||
| EV/EBITDA | 15.56 |
EPS(TTM)0.26
EY5.51%
EPS(NY)0.35
Fwd EY7.44%
FCF(TTM)0.33
FCFY6.97%
OCF(TTM)0.38
OCFY8.14%
SpS5.04
BVpS1.97
TBVpS0.09
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 8.12% | ||
| ROCE | 6.98% | ||
| ROIC | 4.35% | ||
| ROICexc | 4.95% | ||
| ROICexgc | 13.19% | ||
| OM | 4.74% | ||
| PM (TTM) | 3.18% | ||
| GM | 41.05% | ||
| FCFM | 6.53% |
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 | 0.62 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 48.2% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 108.81% | ||
| Profit Quality | 205.61% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 | ||
| Altman-Z | 2.28 |
F-Score9
WACC9.5%
ROIC/WACC0.46
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)-10.34%
EPS 3Y-23.11%
EPS 5Y-7.16%
EPS Q2Q%600%
EPS Next Y42.41%
EPS Next 2Y32.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.26%
Revenue growth 3Y-3.77%
Revenue growth 5Y-1.41%
Sales Q2Q%-7.29%
Revenue Next Year-2.55%
Revenue Next 2Y1.18%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y122.19%
EBIT growth 3Y-40.69%
EBIT growth 5Y-15.55%
EBIT Next Year338.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1883.12%
FCF growth 3Y-24.52%
FCF growth 5Y-1.66%
OCF growth 1Y404.36%
OCF growth 3Y-22.05%
OCF growth 5Y-0.57%