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III

Information Services GroupNasdaqGM:III Stock Report

Last Price

US$6.92

Market Cap

US$339.0m

7D

-2.3%

1Y

75.2%

Updated

17 Jan, 2022

Data

Company Financials +
III fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends2/6

III Stock Overview

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific.

Information Services Group Competitors

Accenture

NYSE:ACN

US$223.3b

Gartner

NYSE:IT

US$23.5b

Perficient

NasdaqGS:PRFT

US$3.4b

LiveRamp Holdings

NYSE:RAMP

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Information Services Group
Historical stock prices
Current Share PriceUS$6.92
52 Week HighUS$9.70
52 Week LowUS$3.38
Beta0.69
1 Month Change-6.23%
3 Month Change-8.10%
1 Year Change75.19%
3 Year Change68.37%
5 Year Change101.16%
Change since IPO-6.23%

Recent News & Updates

Shareholder Returns

IIIUS ITUS Market
7D-2.3%-2.4%-0.5%
1Y75.2%-2.0%13.7%

Return vs Industry: III exceeded the US IT industry which returned -2% over the past year.

Return vs Market: III exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is III's price volatile compared to industry and market?
III volatility
III Average Weekly Movement6.9%
IT Industry Average Movement8.1%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: III is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: III's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20061,300Mike Connorshttps://www.isg-one.com

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments.

Information Services Group Fundamentals Summary

How do Information Services Group's earnings and revenue compare to its market cap?
III fundamental statistics
Market CapUS$339.03m
Earnings (TTM)US$13.40m
Revenue (TTM)US$274.65m

25.3x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
III income statement (TTM)
RevenueUS$274.65m
Cost of RevenueUS$165.75m
Gross ProfitUS$108.90m
ExpensesUS$95.50m
EarningsUS$13.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin39.65%
Net Profit Margin4.88%
Debt/Equity Ratio76.1%

How did III perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: III ($6.92) is trading below our estimate of fair value ($10.66)

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


Price To Earnings Ratio

PE vs Industry: III is good value based on its PE Ratio (25.3x) compared to the US IT industry average (33.6x).

PE vs Market: III is poor value based on its PE Ratio (25.3x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: III is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: III is good value based on its PB Ratio (3.4x) compared to the US IT industry average (4.4x).


Future Growth

How is Information Services Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: III's forecast earnings growth (19% per year) is above the savings rate (2%).

Earnings vs Market: III's earnings (19% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: III's revenue (6.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: III's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: III's Return on Equity is forecast to be low in 3 years time (16.7%).


Past Performance

How has Information Services Group performed over the past 5 years?

60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: III has a large one-off loss of $5.1M impacting its September 30 2021 financial results.

Growing Profit Margin: III's current net profit margins (4.9%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: III's earnings have grown significantly by 60% per year over the past 5 years.

Accelerating Growth: III's earnings growth over the past year (294%) exceeds its 5-year average (60% per year).

Earnings vs Industry: III earnings growth over the past year (294%) exceeded the IT industry 35.8%.


Return on Equity

High ROE: III's Return on Equity (13.6%) is considered low.


Financial Health

How is Information Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: III's short term assets ($123.4M) exceed its short term liabilities ($61.9M).

Long Term Liabilities: III's short term assets ($123.4M) exceed its long term liabilities ($83.4M).


Debt to Equity History and Analysis

Debt Level: III's net debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: III's debt to equity ratio has reduced from 137.6% to 76.1% over the past 5 years.

Debt Coverage: III's debt is well covered by operating cash flow (61.7%).

Interest Coverage: III's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: III's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: III's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether III's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if III's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), III'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?

2.5yrs

Average management tenure


CEO

Mike Connors (66 yo)

15.5yrs

Tenure

US$3,252,399

Compensation

Mr. Michael P. Connors, also known as Mike, serves as the Chief Executive Officer and Chairman at ISG Information Services Group Americas, Inc. Mr. Connors serves as the Chairman and Chief Executive Office...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD3.25M) is above average for companies of similar size in the US market ($USD1.68M).

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


Leadership Team

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


Board Members

Experienced Board: III's board of directors are seasoned and experienced ( 12.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Information Services Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Information Services Group, Inc.
  • Ticker: III
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: US$339.031m
  • Shares outstanding: 48.99m
  • Website: https://www.isg-one.com

Number of Employees


Location

  • Information Services Group, Inc.
  • 2187 Atlantic Street
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:25
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.