INFORMATION SERVICES CORP (ISV.CA) Stock Fundamental Analysis
Canada - TSX:ISV - CA45676A1057 - Common Stock
24.71 CAD
-0.29 (-1.16%)
We assign a fundamental rating of 6 out of 10 to ISV. ISV was compared to 31 industry peers in the Real Estate Management & Development industry. ISV scores excellent on profitability, 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
ISV had positive earnings in the past year.
ISV had a positive operating cash flow in the past year.
ISV had positive earnings in each of the past 5 years.
ISV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ISV has a better Return On Assets (3.99%) than 78.13% of its industry peers.
ISV's Return On Equity of 11.89% is amongst the best of the industry. ISV outperforms 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.24%, ISV belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ISV is in line with the industry average of 11.13%.
The last Return On Invested Capital (8.24%) for ISV is well below the 3 year average (12.69%), which needs to be investigated, but indicates that ISV had better years and this may not be a problem.
| 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.
ISV's Profit Margin has declined in the last couple of years.
ISV has a Operating Margin (21.36%) which is in line with its industry peers.
ISV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 68.60%, ISV belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ISV has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ISV is creating some value.
Compared to 1 year ago, ISV has more shares outstanding
The number of shares outstanding for ISV has been increased compared to 5 years ago.
Compared to 1 year ago, ISV has a worse debt to assets ratio.
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 has a Altman-Z score of 1.92. This is in the better half of the industry: ISV outperforms 68.75% of its industry peers.
ISV has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as ISV would need 2.92 years to pay back of all of its debts.
The Debt to FCF ratio of ISV (2.92) is better than 93.75% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ISV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.06, ISV is in line with its industry, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.14
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.61 indicates that ISV may have some problems paying its short term obligations.
With a Current ratio value of 0.61, ISV perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.61, ISV is in line with its industry, outperforming 43.75% of the companies in the same industry.
| 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.
ISV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.50% yearly.
The Revenue has grown by 19.46% in the past year. This is quite good.
The Revenue has been growing by 12.49% on average over the past years. This is quite good.
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
ISV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.70% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
65.63% of the companies in the same industry are more expensive than ISV, based on the Price/Earnings ratio.
ISV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.17 indicates a correct valuation of ISV.
Based on the Price/Forward Earnings ratio, ISV is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. 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.
Based on the Price/Free Cash Flow ratio, ISV is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
The decent profitability rating of ISV 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
With a Yearly Dividend Yield of 3.38%, ISV has a reasonable but not impressive dividend return.
ISV's Dividend Yield is a higher than the industry average which is at 3.48.
Compared to an average S&P500 Dividend Yield of 2.36, 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.
ISV's earnings are growing more than its dividend. This makes the dividend growth 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%