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 81 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 it does not seem to be growing.
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.
III had positive earnings in each of the past 5 years.
III had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
III has a better Return On Assets (3.81%) than 60.49% of its industry peers.
III has a Return On Equity (8.12%) which 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 55.56% 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 21.85%.
| 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
III has a Profit Margin (3.18%) which is in line with its industry peers.
In the last couple of years the Profit Margin of III has declined.
With a Operating Margin value of 4.74%, III perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
In the last couple of years the Operating Margin of III has declined.
With a decent Gross Margin value of 41.05%, III is doing good in the industry, outperforming 61.73% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), III is destroying value.
III has less shares outstanding than it did 1 year ago.
III has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, III has an improved debt to assets ratio.
2.2 Solvency
III has an Altman-Z score of 2.37. 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 (2.37) which is in line with its industry peers.
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.
III's Debt to FCF ratio of 3.73 is fine compared to the rest of the industry. III outperforms 60.49% of its industry peers.
III has a Debt/Equity ratio of 0.62. This is a neutral value indicating III is somewhat dependend on debt financing.
III has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.48
WACC9%
2.3 Liquidity
A Current Ratio of 2.42 indicates that III has no problem at all paying its short term obligations.
The Current ratio of III (2.42) is better than 74.07% of its industry peers.
A Quick Ratio of 2.42 indicates that III has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.42, III is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -7.16% on average over the past years.
III shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.26%.
The Revenue has been decreasing by -1.41% on average over the past years.
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
Based on estimates for the next years, III will show a very strong growth in Earnings Per Share. The EPS will grow by 31.03% on average per year.
Based on estimates for the next years, III will show a small growth in Revenue. The Revenue will grow by 1.16% on average per year.
EPS Next Y43.42%
EPS Next 2Y31.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.62%
Revenue Next 2Y1.16%
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 19.19, III is valued on the expensive side.
67.90% of the companies in the same industry are more expensive than III, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, III is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.53, which indicates a correct valuation of III.
III's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. III is cheaper than 72.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, III is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
III's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. III is cheaper than 61.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, III is valued cheaply inside the industry as 87.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 16.44 |
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 31.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y31.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, III has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, III pays a better dividend. On top of this III pays more dividend than 97.53% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, III pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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 2Y31.03%
EPS Next 3YN/A
4.99
+0.19 (+3.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners61.41%
Inst Owner Change1.21%
Ins Owners15.94%
Ins Owner Change1.45%
Market Cap240.52M
Analysts85.71
Price Target5.99 (20.04%)
Short Float %0.73%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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)10.59%
PT rev (3m)10.59%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)0.71%
EPS NY rev (3m)7.58%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 14.53 | ||
| P/S | 0.99 | ||
| P/FCF | 15.16 | ||
| P/OCF | 12.99 | ||
| P/B | 2.53 | ||
| P/tB | 54.29 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)0.26
EY5.21%
EPS(NY)0.34
Fwd EY6.88%
FCF(TTM)0.33
FCFY6.6%
OCF(TTM)0.38
OCFY7.7%
SpS5.04
BVpS1.97
TBVpS0.09
PEG (NY)0.44
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 | 2.37 |
F-Score9
WACC9%
ROIC/WACC0.48
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 Y43.42%
EPS Next 2Y31.03%
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-2.62%
Revenue Next 2Y1.16%
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%