DB:ISW

Stock Analysis Report

Information Services International-Dentsu

Executive Summary

Information Services International-Dentsu, Ltd.

Rewards

PE ratio (27x) is below the IT industry average (33.5x)

Earnings are forecast to grow 9.81% per year

Earnings have grown 16.1% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ISW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.1%

ISW

0.6%

DE IT

1.7%

DE Market


1 Year Return

53.5%

ISW

50.5%

DE IT

15.0%

DE Market

Return vs Industry: ISW exceeded the German IT industry which returned 50.5% over the past year.

Return vs Market: ISW exceeded the German Market which returned 15% over the past year.


Shareholder returns

ISWIndustryMarket
7 Day9.1%0.6%1.7%
30 Day16.2%8.6%0.8%
90 Day34.4%16.9%3.7%
1 Year56.6%53.5%51.5%50.5%18.5%15.0%
3 Year148.6%133.7%159.4%152.4%17.1%6.9%
5 Year480.9%414.4%243.9%229.9%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISW (€43) is trading above our estimate of fair value (€29.45)

Significantly Below Fair Value: ISW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ISW is good value based on its PE Ratio (27x) compared to the IT industry average (33.5x).

PE vs Market: ISW is poor value based on its PE Ratio (27x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: ISW is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ISW is good value based on its PB Ratio (3.1x) compared to the DE IT industry average (4.6x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISW's forecast earnings growth (9.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: ISW's earnings (9.8% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: ISW's earnings are forecast to grow, but not significantly.

Revenue vs Market: ISW's revenue (3.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: ISW's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISW's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Information Services International-Dentsu performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISW has high quality earnings.

Growing Profit Margin: ISW's current net profit margins (6.2%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: ISW's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: ISW's earnings growth over the past year (20%) exceeds its 5-year average (16.1% per year).

Earnings vs Industry: ISW earnings growth over the past year (20%) underperformed the IT industry 20.6%.


Return on Equity

High ROE: ISW's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Information Services International-Dentsu's financial position?


Financial Position Analysis

Short Term Liabilities: ISW's short term assets (¥69.7B) exceed its short term liabilities (¥29.5B).

Long Term Liabilities: ISW's short term assets (¥69.7B) exceed its long term liabilities (¥3.0B).


Debt to Equity History and Analysis

Debt Level: ISW is debt free.

Reducing Debt: ISW has not had any debt for past 5 years.

Debt Coverage: ISW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ISW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ISW's debt is covered by short term assets.


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.3%markettop25%3.6%industryaverage0.5%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: ISW's dividend (1.36%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: ISW's dividend (1.36%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: ISW's dividend payments have been volatile in the past 10 years.

Growing Dividend: ISW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.3%), ISW's dividend payments are well 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?

8.3yrs

Average management tenure


CEO

Ryoichi Nawa (62yo)

1.1yrs

Tenure

0

Mr. Ryoichi Nawa has been President, Chief Executive Officer and Chief Operating Officer of Information Services International-Dentsu, Ltd. since January 1, 2019. He served as Deputy Director of Engineerin ...


Leadership Team

NamePositionTenureCompensationOwnership
Ryoichi Nawa
CEO, COO1.1yrsno data0.028% ¥389.4k
Konosuke Umezawa
Head - Dev & Technology11.7yrsno datano data
Akihiro Fukuyama
Head-Sales15.7yrsno datano data
Kenji Ichikawa
Senior MD13.7yrsno data0.018% ¥259.5k
Shigeyuki Suganuma
Senior Executive Officer0yrsno datano data
Nobuo Uehara
Senior MD14.7yrsno data0.028% ¥389.4k
Shinichi Umino
Chief of Sales Unit0yrsno datano data
Shigehiro Kotani
Managing Executive Officer & Manager of Business Solution Department0.08yrsno datano data
Atsushi Yoshimoto
MD, Deputy Head of Engineering Solution Segment & Executive Director13.8yrsno datano data
Akira Kobayashi
MD, Head of Financing Solution Segment14.8yrsno datano data

8.3yrs

Average Tenure

62yo

Average Age

Experienced Management: ISW's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ryoichi Nawa
CEO, COO1.1yrsno data0.028% ¥389.4k
Konosuke Umezawa
Head - Dev & Technology11.7yrsno datano data
Akihiro Fukuyama
Head-Sales15.7yrsno datano data
Kenji Ichikawa
Senior MD13.7yrsno data0.018% ¥259.5k
Nobuo Uehara
Senior MD14.7yrsno data0.028% ¥389.4k
Atsushi Yoshimoto
MD, Deputy Head of Engineering Solution Segment & Executive Director13.8yrsno datano data
Akira Kobayashi
MD, Head of Financing Solution Segment14.8yrsno datano data
Yasuo Morioka
Head of Communication IT Segment4.7yrsno datano data
Setsuo Kamai
Chairman1.1yrsno data0.0061% ¥86.6k
Kazuo Ichijo
External Director4.7yrsno datano data

12.7yrs

Average Tenure

62yo

Average Age

Experienced Board: ISW's board of directors are seasoned and experienced ( 12.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Information Services International-Dentsu, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Information Services International-Dentsu, Ltd.
  • Ticker: ISW
  • Exchange: DB
  • Founded: 1975
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥167.800b
  • Listing Market Cap: JP¥1.410b
  • Shares outstanding: 32.58m
  • Website: https://www.isid.co.jp

Number of Employees


Location

  • Information Services International-Dentsu, Ltd.
  • 2-17-1 Konan
  • Minato-ku
  • Tokyo
  • 108-0075
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4812TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 2000
ISWDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2000

Biography

Information Services International-Dentsu, Ltd. provides information technology (IT) solutions for the financial, manufacturing, and service sectors worldwide. The company operates in four segments: Financial Solutions, Business Solutions, Manufacturing Solutions, and Communication IT. It offers core banking solutions, such as back office system for overseas bank branches and liquidity management system; capital market dealing and risk management systems; BANK-R, a loan solution, and Lamp, a lease and finance operation management package; and integrated CRM system and cloud business application. Additionally, the company offers business solutions, including STRAVIS, a consolidated accounting software, Ci*X Expense, an expense settlement system, Ci*X Journalizer, an automated journalizing system, company management solution, and integrated accounting solution; POSITIVE, an integrated human capital management solution, and STAFFBRAIN, an integrated human resource solution; and SAP S/4HANA, an ERP package, and BusinessSPECTRE, a SAP data linkage framework. In addition, it provides product development process consulting, CAD/CAM/CAE/PLM software introduction/deployment support, and model based systems engineering (MBSE) support services; digital manufacturing solutions, robotics, product logistics simulations, and global process design support system, as well as after sale services comprising PDX, a failure prediction specialized analysis framework, field service solutions, and Internet of things platform. Further, the company offers core system construction, outsourcing, operation, and maintenance services; RPA software and management tool, and AppGuard, an endpoint security solution; iPLAss, a marketing platform, customer management and marketing automation solutions; LINE integration services, and FACERE, a smartphone and online development platform; and DigSports, an athletic ability measurement system. The company was founded in 1975 and is headquartered in Tokyo, Japan. Information Services International-Dentsu, Ltd. is a subsidiary of Dentsu Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:13
End of Day Share Price2020/02/14 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.