INFORMATION SERVICES CORP (ISC.CA) Stock Fundamental Analysis
TSX:ISC - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
Taking everything into account, ISC scores 6 out of 10 in our fundamental rating. ISC was compared to 28 industry peers in the Real Estate Management & Development industry. While ISC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ISC.
1. Profitability
1.1 Basic Checks
ISC had positive earnings in the past year.
ISC had a positive operating cash flow in the past year.
In the past 5 years ISC has always been profitable.
Each year in the past 5 years ISC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ISC (5.22%) is better than 85.71% of its industry peers.
ISC has a Return On Equity of 14.81%. This is amongst the best in the industry. ISC outperforms 92.86% of its industry peers.
ISC has a Return On Invested Capital of 9.16%. This is amongst the best in the industry. ISC outperforms 85.71% of its industry peers.
ISC had an Average Return On Invested Capital over the past 3 years of 9.57%. This is in line with the industry average of 11.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 14.81% | ||
| ROIC | 9.16% |
ROA(3y)6.47%
ROA(5y)8.37%
ROE(3y)15.28%
ROE(5y)17.25%
ROIC(3y)9.57%
ROIC(5y)11.17%
1.3 Margins
With a decent Profit Margin value of 10.91%, ISC is doing good in the industry, outperforming 64.29% of the companies in the same industry.
ISC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 23.60%, ISC is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Operating Margin of ISC has remained more or less at the same level.
The Gross Margin of ISC (68.38%) is better than 89.29% of its industry peers.
In the last couple of years the Gross Margin of ISC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.6% | ||
| PM (TTM) | 10.91% | ||
| GM | 68.38% |
OM growth 3Y-9.44%
OM growth 5Y-0.18%
PM growth 3Y-24.4%
PM growth 5Y-10.92%
GM growth 3Y-1.7%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ISC is still creating some value.
The number of shares outstanding for ISC has been increased compared to 1 year ago.
The number of shares outstanding for ISC has been increased compared to 5 years ago.
The debt/assets ratio for ISC has been reduced compared to a year ago.
2.2 Solvency
ISC has an Altman-Z score of 2.25. This is not the best score and indicates that ISC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ISC (2.25) is better than 75.00% of its industry peers.
The Debt to FCF ratio of ISC is 3.08, which is a good value as it means it would take ISC, 3.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.08, ISC belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
ISC has a Debt/Equity ratio of 0.96. This is a neutral value indicating ISC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, ISC is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.25
WACC7.31%
2.3 Liquidity
ISC has a Current Ratio of 0.73. This is a bad value and indicates that ISC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.73, ISC is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
ISC has a Quick Ratio of 0.73. This is a bad value and indicates that ISC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, ISC is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.46% over the past year.
ISC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.18% yearly.
The Revenue has grown by 12.84% in the past year. This is quite good.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
EPS 1Y (TTM)17.46%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%1900%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%5.15%
3.2 Future
ISC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.98% yearly.
Based on estimates for the next years, ISC will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y5.75%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.62, ISC is valued on the expensive side.
71.43% of the companies in the same industry are more expensive than ISC, based on the Price/Earnings ratio.
ISC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.65.
ISC is valuated correctly with a Price/Forward Earnings ratio of 12.76.
ISC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ISC is cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ISC to the average of the S&P500 Index (21.27), we can say ISC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISC is valued cheaper than 92.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ISC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.16 | ||
| EV/EBITDA | 8.78 |
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.
The decent profitability rating of ISC may justify a higher PE ratio.
A more expensive valuation may be justified as ISC's earnings are expected to grow with 50.98% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y50.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, ISC has a reasonable but not impressive dividend return.
ISC's Dividend Yield is a higher than the industry average which is at 3.13.
ISC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of ISC has a limited annual growth rate of 2.67%.
ISC has been paying a dividend for over 5 years, so it has already some track record.
ISC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ISC pays out 61.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ISC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.46%
EPS Next 2Y50.98%
EPS Next 3YN/A
TSX:ISC (6/23/2025, 7:00:00 PM)
32
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners29.95%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap592.96M
Analysts75.56
Price Target33.35 (4.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend0.91
Dividend Growth(5Y)2.67%
DP61.46%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.69%
Min EPS beat(2)-20.24%
Max EPS beat(2)2.87%
EPS beat(4)2
Avg EPS beat(4)0.27%
Min EPS beat(4)-47.04%
Max EPS beat(4)65.51%
EPS beat(8)2
Avg EPS beat(8)-16.7%
EPS beat(12)5
Avg EPS beat(12)-7.1%
EPS beat(16)8
Avg EPS beat(16)-2.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)8.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.15%
Revenue beat(12)4
Avg Revenue beat(12)1.09%
Revenue beat(16)7
Avg Revenue beat(16)1.93%
PT rev (1m)-0.91%
PT rev (3m)-4.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 12.76 | ||
| P/S | 2.37 | ||
| P/FCF | 10.16 | ||
| P/OCF | 8.92 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.78 |
EPS(TTM)1.48
EY4.63%
EPS(NY)2.51
Fwd EY7.84%
FCF(TTM)3.15
FCFY9.84%
OCF(TTM)3.59
OCFY11.21%
SpS13.51
BVpS9.95
TBVpS-13.49
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 14.81% | ||
| ROCE | 12.9% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.51% | ||
| ROICexgc | 635.29% | ||
| OM | 23.6% | ||
| PM (TTM) | 10.91% | ||
| GM | 68.38% | ||
| FCFM | 23.31% |
ROA(3y)6.47%
ROA(5y)8.37%
ROE(3y)15.28%
ROE(5y)17.25%
ROIC(3y)9.57%
ROIC(5y)11.17%
ROICexc(3y)10.57%
ROICexc(5y)13.03%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.48%
ROCE(5y)15.74%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-26.64%
ROICexc growth 5Y-11.94%
OM growth 3Y-9.44%
OM growth 5Y-0.18%
PM growth 3Y-24.4%
PM growth 5Y-10.92%
GM growth 3Y-1.7%
GM growth 5Y-0.59%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 30.18% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 77.28% | ||
| Profit Quality | 213.69% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.25 |
F-Score7
WACC7.31%
ROIC/WACC1.25
Cap/Depr(3y)266.66%
Cap/Depr(5y)165.46%
Cap/Sales(3y)25.59%
Cap/Sales(5y)15.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.46%
EPS 3Y-14.66%
EPS 5Y-0.18%
EPS Q2Q%1900%
EPS Next Y81.11%
EPS Next 2Y50.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y13.46%
Revenue growth 5Y13.21%
Sales Q2Q%5.15%
Revenue Next Year5.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.24%
EBIT growth 3Y2.74%
EBIT growth 5Y13.01%
EBIT Next Year71.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y15.94%
FCF growth 3Y2.15%
FCF growth 5Y24.76%
OCF growth 1Y28.96%
OCF growth 3Y5.16%
OCF growth 5Y24.67%