TSX:ISV

Stock Analysis Report

Information Services

Executive Summary

Information Services Corporation, together with its subsidiaries, provides registry and information management services for public data and records in Canada and internationally.


Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

How has Information Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

ISV

-4.6%

CA Real Estate

3.0%

CA Market


1 Year Return

-13.3%

ISV

-9.0%

CA Real Estate

-24.5%

CA Market

Return vs Industry: ISV underperformed the Canadian Real Estate industry which returned -9% over the past year.

Return vs Market: ISV exceeded the Canadian Market which returned -24.5% over the past year.


Shareholder returns

ISVIndustryMarket
7 Day2.3%-4.6%3.0%
30 Day-14.0%-26.0%-21.2%
90 Day-7.6%-21.8%-24.4%
1 Year-8.6%-13.3%-7.5%-9.0%-22.0%-24.5%
3 Year-14.3%-25.9%7.5%1.3%-13.9%-21.9%
5 Year9.0%-14.7%33.2%4.4%-2.0%-16.6%

Price Volatility Vs. Market

How volatile is Information Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Information Services undervalued compared to its fair value and its price relative to the market?

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISV (CA$14.07) is trading below our estimate of fair value (CA$25.85)

Significantly Below Fair Value: ISV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ISV is poor value based on its PE Ratio (12.7x) compared to the Real Estate industry average (12.6x).

PE vs Market: ISV is poor value based on its PE Ratio (12.7x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: ISV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ISV is overvalued based on its PB Ratio (2.2x) compared to the CA Real Estate industry average (0.6x).


Next Steps

Future Growth

How is Information Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISV's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: ISV's earnings are forecast to decline over the next 3 years (-0.3% per year).

High Growth Earnings: ISV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ISV's revenue (2.4% per year) is forecast to grow slower than the Canadian market (3.4% per year).

High Growth Revenue: ISV's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ISV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Information Services performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISV has high quality earnings.

Growing Profit Margin: ISV's current net profit margins (14.6%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: ISV's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: ISV's earnings growth over the past year (4.1%) is below its 5-year average (6.5% per year).

Earnings vs Industry: ISV earnings growth over the past year (4.1%) exceeded the Real Estate industry -22.5%.


Return on Equity

High ROE: ISV's Return on Equity (17%) is considered low.


Next Steps

Financial Health

How is Information Services's financial position?


Financial Position Analysis

Short Term Liabilities: ISV's short term assets (CA$42.3M) exceed its short term liabilities (CA$24.7M).

Long Term Liabilities: ISV's short term assets (CA$42.3M) exceed its long term liabilities (CA$32.7M).


Debt to Equity History and Analysis

Debt Level: ISV's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: ISV's debt to equity ratio has increased from 11.6% to 15.8% over the past 5 years.

Debt Coverage: ISV's debt is well covered by operating cash flow (131.3%).

Interest Coverage: ISV's interest payments on its debt are well covered by EBIT (24.5x coverage).


Balance Sheet

Inventory Level: ISV has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISV's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Information Services's current dividend yield, its reliability and sustainability?

5.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISV's dividend (5.69%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: ISV's dividend (5.69%) is low compared to the top 25% of dividend payers in the Canadian market (8.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ISV has been paying a dividend for less than 10 years.

Growing Dividend: ISV has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.2%), ISV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Jeff Stusek

11.75s

Tenure

CA$876,387

Compensation

Mr. Jeff Stusek, MBA, B.Admin has been the Chief Executive Officer and President at Information Services Corporation since July 1, 2008. Mr. Stusek served as Chief Operating Officer at Information Services ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD620.11K) is about average for companies of similar size in the Canadian market ($USD777.11K).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Stusek
President & CEO11.75yrsCA$876.39k0.029% CA$71.8k
Shawn Peters
Executive VP & CFO8.25yrsCA$445.86k0.020% CA$49.2k
Loren Cisyk
Executive Vice President of Technology Solutions2.5yrsCA$442.00kno data
Dennis White
Vice President of Marketing & Business Development2.5yrsCA$454.06kno data
Chris Valentine
1.42yrsCA$469.90kno data
Jonathan Hackshaw
Director of Investor Relations & Capital Markets6.42yrsno data0.0086% CA$21.1k
Kathy Hillman-Weir
Executive VP9.25yrsCA$395.79k0.057% CA$140.7k
Catherine McLean
Vice President of People & Culture2.5yrsno datano data
Kenneth Budzak
Executive Vice President of Registry Operationsno dataCA$384.34k0.011% CA$26.0k
Clare Colledge
President of ESC Corporate Services1.42yrsno datano data

2.5yrs

Average Tenure

Experienced Management: ISV's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karyn Brooks
Independent Director3.92yrsCA$71.00k0.014% CA$35.2k
Iraj Pourian
Independent Director3.92yrsCA$69.50kno data
Laurie Powers
Independent Director1.92yrsCA$51.86kno data
Joel Teal
Independent Chairman of the Board7.25yrsCA$113.00k0.017% CA$42.2k
Douglas Emsley
Independent Director7.25yrsCA$70.00k0.017% CA$41.5k
Anthony Guglielmin
Independent Director7.25yrsCA$79.00k0.043% CA$105.5k
Thomas Christiansen
Independent Director11.25yrsCA$69.80kno data
William Musgrave
Independent Director10.25yrsCA$71.00k0.059% CA$144.7k
Dion Tchorzewski
Independent Director7.25yrsCA$70.00k0.013% CA$32.4k
Heather Ross
Independent Director1.92yrsCA$54.86kno data

7.3yrs

Average Tenure

61yo

Average Age

Experienced Board: ISV's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ISV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Information Services Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Information Services Corporation
  • Ticker: ISV
  • Exchange: TSX
  • Founded: 2000
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: CA$246.225m
  • Shares outstanding: 17.50m
  • Website: https://www.company.isc.ca

Number of Employees


Location

  • Information Services Corporation
  • 10 Research Drive
  • Suite 300
  • Regina
  • Saskatchewan
  • S4S 7J7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISVTSX (The Toronto Stock Exchange)YesClass A SharesCACADJul 2013
IRMT.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDJul 2013

Biography

Information Services Corporation, together with its subsidiaries, provides registry and information management services for public data and records in Canada and internationally. It operates through three segments: Registry Operations, Services, and Technology Solutions. The company provides land titles registry services that issues titles to land and registers transactions affecting titles, including changes of ownership and the registration of interests in land; land surveys directory, which plans and creates a representation of Saskatchewan land parcels in the cadastral parcel mapping system; and geomatics services that manages geographic data in relation to the cadastral parcel mapping system. It also offers personal property registry, a notice-based public registry in which security interests and other interests in personal property are registered; and corporate registry, which is a province-wide system for registering business corporations, non-profit corporations, co-operatives, sole proprietorships, partnerships, and business names. In addition, the company provides search and registration services through an online workflow platform for the Ontario business information system; know-your-customer services; and corporate supplies for companies to organize and maintain corporate legal documents. Information Services Corporation serves law firms, financial institutions, accountants, non-profit and co-operative associations, and entrepreneurs, as well as lending, leasing, and credit issuing businesses and institutions. The company was formerly known as Saskatchewan Land Information Services Corporation and changed its name to Information Services Corporation in November 2000. Information Services Corporation was founded in 2000 and is headquartered in Regina, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.