INFORMATION SERVICES CORP (ISV.CA) Stock Fundamental Analysis
TSX:ISV - Toronto Stock Exchange - CA45676A1057 - Common Stock - Currency: CAD
Taking everything into account, ISV scores 5 out of 10 in our fundamental rating. ISV was compared to 28 industry peers in the Real Estate Management & Development industry. ISV has an excellent profitability rating, but there are some minor concerns on its financial health. ISV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ISV was profitable.
In the past year ISV had a positive cash flow from operations.
ISV had positive earnings in each of the past 5 years.
Each year in the past 5 years ISV had a positive operating cash flow.
1.2 Ratios
ISV has a Return On Assets of 3.99%. This is in the better half of the industry: ISV outperforms 78.13% of its industry peers.
ISV has a Return On Equity of 11.89%. This is amongst the best in the industry. ISV outperforms 81.25% of its industry peers.
ISV has a Return On Invested Capital of 8.24%. This is amongst the best in the industry. ISV outperforms 93.75% of its industry peers.
ISV had an Average Return On Invested Capital over the past 3 years of 12.69%. This is in line with the industry average of 11.49%.
The 3 year average ROIC (12.69%) for ISV is well above the current ROIC(8.24%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.89% | ||
| ROIC | 8.24% |
ROA(3y)9.77%
ROA(5y)9.85%
ROE(3y)19.3%
ROE(5y)18.41%
ROIC(3y)12.69%
ROIC(5y)12.36%
1.3 Margins
With a decent Profit Margin value of 8.51%, ISV is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of ISV has declined.
Looking at the Operating Margin, with a value of 21.36%, ISV is in line with its industry, outperforming 46.88% of the companies in the same industry.
ISV's Operating Margin has improved in the last couple of years.
ISV has a better Gross Margin (68.60%) than 84.38% of its industry peers.
ISV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.36% | ||
| PM (TTM) | 8.51% | ||
| GM | 68.6% |
OM growth 3Y-0.14%
OM growth 5Y3.16%
PM growth 3Y-8.6%
PM growth 5Y-5.65%
GM growth 3Y-1.62%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
ISV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ISV has been increased compared to 1 year ago.
The number of shares outstanding for ISV has been increased compared to 5 years ago.
ISV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that ISV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ISV's Altman-Z score of 1.92 is fine compared to the rest of the industry. ISV outperforms 68.75% of its industry peers.
The Debt to FCF ratio of ISV is 2.92, which is a good value as it means it would take ISV, 2.92 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.92, ISV belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
ISV has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
ISV has a Debt to Equity ratio of 1.06. This is comparable to the rest of the industry: ISV outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.14
WACC7.25%
2.3 Liquidity
ISV has a Current Ratio of 0.61. This is a bad value and indicates that ISV is not financially healthy enough and could expect problems in meeting its short term obligations.
ISV's Current ratio of 0.61 is in line compared to the rest of the industry. ISV outperforms 43.75% of its industry peers.
ISV has a Quick Ratio of 0.61. This is a bad value and indicates that ISV is not financially healthy enough and could expect problems in meeting its short term obligations.
ISV's Quick ratio of 0.61 is in line compared to the rest of the industry. ISV outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ISV have decreased strongly by -25.66% in the last year.
The Earnings Per Share has been growing by 11.50% on average over the past years. This is quite good.
ISV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.46%.
Measured over the past years, ISV shows a quite strong growth in Revenue. The Revenue has been growing by 12.49% on average per year.
EPS 1Y (TTM)-25.66%
EPS 3Y10.83%
EPS 5Y11.5%
EPS Q2Q%-50%
Revenue 1Y (TTM)19.46%
Revenue growth 3Y16.21%
Revenue growth 5Y12.49%
Sales Q2Q%11.58%
3.2 Future
Based on estimates for the next years, ISV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.70% on average per year.
Based on estimates for the next years, ISV will show a quite strong growth in Revenue. The Revenue will grow by 10.00% on average per year.
EPS Next Y-21.74%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year18.25%
Revenue Next 2Y12.7%
Revenue Next 3Y10%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ISV is valuated rather expensively with a Price/Earnings ratio of 21.87.
ISV's Price/Earnings ratio is a bit cheaper when compared to the industry. ISV is cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. ISV is around the same levels.
ISV is valuated correctly with a Price/Forward Earnings ratio of 13.17.
84.38% of the companies in the same industry are more expensive than ISV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.46. ISV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
ISV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ISV is cheaper than 96.88% of the companies in the same industry.
ISV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ISV is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
ISV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y7.64%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
ISV has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
ISV's Dividend Yield is a higher than the industry average which is at 3.13.
Compared to an average S&P500 Dividend Yield of 2.43, ISV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of ISV has a limited annual growth rate of 2.75%.
ISV has been paying a dividend for at least 10 years, so it has a reliable track record.
ISV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.75%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
80.45% of the earnings are spent on dividend by ISV. This is not a sustainable payout ratio.
The dividend of ISV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.45%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
TSX:ISV (3/12/2025, 7:00:00 PM)
24.71
-0.29 (-1.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap455.41M
Analysts77.78
Price Target35.09 (42.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend0.92
Dividend Growth(5Y)2.75%
DP80.45%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.23%
Min EPS beat(2)-47.04%
Max EPS beat(2)65.51%
EPS beat(4)1
Avg EPS beat(4)-23.56%
Min EPS beat(4)-92.93%
Max EPS beat(4)65.51%
EPS beat(8)2
Avg EPS beat(8)-17.32%
EPS beat(12)6
Avg EPS beat(12)-1.9%
EPS beat(16)9
Avg EPS beat(16)2.39%
Revenue beat(2)1
Avg Revenue beat(2)2.24%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)8.35%
Revenue beat(4)2
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)8.35%
Revenue beat(8)3
Avg Revenue beat(8)0.33%
Revenue beat(12)6
Avg Revenue beat(12)2.35%
Revenue beat(16)9
Avg Revenue beat(16)3.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.88 | ||
| P/FCF | 7.18 | ||
| P/OCF | 6.42 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)1.13
EY4.57%
EPS(NY)1.88
Fwd EY7.6%
FCF(TTM)3.44
FCFY13.92%
OCF(TTM)3.85
OCFY15.59%
SpS13.17
BVpS9.43
TBVpS-14.55
PEG (NY)N/A
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.89% | ||
| ROCE | 11.48% | ||
| ROIC | 8.24% | ||
| ROICexc | 8.47% | ||
| ROICexgc | N/A | ||
| OM | 21.36% | ||
| PM (TTM) | 8.51% | ||
| GM | 68.6% | ||
| FCFM | 26.12% |
ROA(3y)9.77%
ROA(5y)9.85%
ROE(3y)19.3%
ROE(5y)18.41%
ROIC(3y)12.69%
ROIC(5y)12.36%
ROICexc(3y)15.05%
ROICexc(5y)14.69%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.69%
ROCE(5y)17.23%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.25%
ROICexc growth 5Y-11.43%
OM growth 3Y-0.14%
OM growth 5Y3.16%
PM growth 3Y-8.6%
PM growth 5Y-5.65%
GM growth 3Y-1.62%
GM growth 5Y-1.1%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 28.07% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 90% | ||
| Profit Quality | 306.84% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.92 |
F-Score6
WACC7.25%
ROIC/WACC1.14
Cap/Depr(3y)262%
Cap/Depr(5y)164.4%
Cap/Sales(3y)24.91%
Cap/Sales(5y)15.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.66%
EPS 3Y10.83%
EPS 5Y11.5%
EPS Q2Q%-50%
EPS Next Y-21.74%
EPS Next 2Y7.64%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y16.21%
Revenue growth 5Y12.49%
Sales Q2Q%11.58%
Revenue Next Year18.25%
Revenue Next 2Y12.7%
Revenue Next 3Y10%
Revenue Next 5YN/A
EBIT growth 1Y26.81%
EBIT growth 3Y16.04%
EBIT growth 5Y16.04%
EBIT Next Year83.93%
EBIT Next 3Y26.16%
EBIT Next 5YN/A
FCF growth 1Y55.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.91%
OCF growth 3Y11.28%
OCF growth 5Y13.63%