5.13 USD
+0.12 (+2.4%)
5.13 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to III. III was compared to 86 industry peers in the IT Services industry. III has an excellent financial health rating, but there are some minor concerns on its profitability. III scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes III very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year III was profitable.
III had a positive operating cash flow in the past year.
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
The Return On Assets of III (4.58%) is better than 65.12% of its industry peers.
With a decent Return On Equity value of 10.32%, III is doing good in the industry, outperforming 66.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.68%, III is in line with its industry, outperforming 55.81% of the companies in the same industry.
III had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 29.74%.
| 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
The Profit Margin of III (4.05%) is better than 61.63% of its industry peers.
In the last couple of years the Profit Margin of III has declined.
III has a Operating Margin (5.32%) which is in line with its industry peers.
In the last couple of years the Operating Margin of III has declined.
The Gross Margin of III (42.24%) is better than 62.79% of its industry peers.
III's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
Compared to 1 year ago, III has less shares outstanding
Compared to 5 years ago, III has more shares outstanding
Compared to 1 year ago, III has an improved debt to assets ratio.
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.
III's Altman-Z score of 2.26 is in line compared to the rest of the industry. III outperforms 46.51% of its industry peers.
The Debt to FCF ratio of III is 2.22, which is a good value as it means it would take III, 2.22 years of fcf income to pay off 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 66.28% 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.
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 | 2.22 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.55
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
The Current ratio of III (2.22) is better than 66.28% of its industry peers.
A Quick Ratio of 2.22 indicates that III has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.22, III is doing good in the industry, outperforming 67.44% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
The Revenue has decreased by -5.74% in the past year.
III shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.41% yearly.
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
The Earnings Per Share is expected to grow by 33.70% on average over the next years. This is a very strong growth
III is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.10, 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 67.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, III is valued a bit cheaper.
III is valuated correctly with a Price/Forward Earnings ratio of 14.35.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 75.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. III is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, III is valued a bit cheaper than 62.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of III indicates a rather cheap valuation: III is cheaper than 89.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.26 | ||
| EV/EBITDA | 15.95 |
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 3.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.07, III pays a better dividend. On top of this III pays more dividend than 97.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, III pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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
5.13
+0.12 (+2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change2.08%
Ins Owners15.88%
Ins Owner Change-2.27%
Market Cap247.27M
Revenue(TTM)241.29M
Net Income(TTM)9.77M
Analysts85.71
Price Target7.33 (42.88%)
Short Float %1.65%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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)9.52%
PT rev (3m)22.34%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 14.35 | ||
| P/S | 1.02 | ||
| P/FCF | 9.26 | ||
| P/OCF | 8.11 | ||
| P/B | 2.61 | ||
| P/tB | 142.11 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)0.3
EY5.85%
EPS(NY)0.36
Fwd EY6.97%
FCF(TTM)0.55
FCFY10.8%
OCF(TTM)0.63
OCFY12.34%
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
WACC8.58%
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 17.1 and the Price/Book (PB) ratio is 2.61.
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%.