NasdaqGM:III

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Information Services Group

Executive Summary

Information Services Group, Inc. operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: III is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: III's weekly volatility has decreased from 12% to 5% over the past year.


Market Performance


7 Day Return

8.9%

III

5.0%

US IT

2.8%

US Market


1 Year Return

18.6%

III

27.8%

US IT

19.7%

US Market

Return vs Industry: III underperformed the US IT industry which returned 27.8% over the past year.

Return vs Market: III underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

IIIIndustryMarket
7 Day8.9%5.0%2.8%
30 Day38.9%10.2%8.0%
90 Day37.6%3.9%6.8%
1 Year18.6%18.6%29.1%27.8%22.4%19.7%
3 Year-34.9%-34.9%101.2%93.3%47.3%37.5%
5 Year-20.2%-20.2%177.5%158.1%93.6%72.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: III ($2.93) is trading below our estimate of fair value ($3.1)

Significantly Below Fair Value: III is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: III is poor value based on its PE Ratio (41x) compared to the US IT industry average (36.1x).

PE vs Market: III is poor value based on its PE Ratio (41x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: III is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: III is good value based on its PB Ratio (1.5x) compared to the US IT industry average (3.9x).


Next Steps

Future Growth

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

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: III's forecast earnings growth (21.6% per year) is above the savings rate (2.2%).

Earnings vs Market: III's earnings (21.6% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: III's revenue (5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: III's revenue (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 (3.6%).


Next Steps

Past Performance

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

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: III has high quality earnings.

Growing Profit Margin: III's current net profit margins (1.4%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: III's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: III's earnings growth over the past year (696.5%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: III earnings growth over the past year (696.5%) exceeded the IT industry 3.2%.


Return on Equity

High ROE: III's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Information Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: III's short term assets ($108.9M) exceed its short term liabilities ($43.9M).

Long Term Liabilities: III's short term assets ($108.9M) exceed its long term liabilities ($92.6M).


Debt to Equity History and Analysis

Debt Level: III's debt to equity ratio (81%) is considered high.

Reducing Debt: III's debt to equity ratio has reduced from 113.4% to 81% over the past 5 years.

Debt Coverage: III's debt is well covered by operating cash flow (68.5%).

Interest Coverage: III's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate III's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate III's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if III's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if III's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of III's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Mike Connors (65 yo)

14.33yrs

Tenure

US$2,774,161

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 ($USD2.77M) is above average for companies of similar size in the US market ($USD561.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Connors
Chairman & CEO14.33yrsUS$2.77m12%
$ 16.9m
David Berger
Executive VP & CFO11.08yrsUS$1.08m1.21%
$ 1.7m
Todd Lavieri
Vice Chairman & President of ISG Americas and Asia Pacificno dataUS$1.29m0.93%
$ 1.3m
Richard Fogel
VP of Law & Americas General Councelno datano datano data
Tom Werner
Sales Directorno datano datano data
Thomas Kucinski
Executive VP & Chief Human Resources Officer3.42yrsUS$671.30k0.30%
$ 421.7k
Steven Hall
President of ISG EMEA & Partner of Digital Advisory Services2.83yrsno datano data
Lyonel Roüast
Partner and President of ISG South Europeno datano datano data
Chip Wagner
Chief Executive Officer of ISG Automationno datano datano data
Lois Coatney
Partner & President of ISG GovernX®no datano datano data
Kathy Rudy
Chief Data & Analytics Officerno datano datano data
Paul Gottsegen
Partner & President of ISG Research and Client Experienceno datano datano data

7.3yrs

Average Tenure

58yo

Average Age

Experienced Management: III's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Connors
Chairman & CEO14.33yrsUS$2.77m12%
$ 16.9m
Neil Budnick
Independent Director9.42yrsUS$165.00k0.56%
$ 786.1k
Kalpana Raina
Independent Director11.25yrsUS$165.00k0.60%
$ 842.2k
Donald Waite
Independent Director12.83yrsUS$165.00k0.77%
$ 1.1m
Bruce Pfau
Independent Director1.33yrsUS$220.63k0.047%
$ 66.6k
Gerald Hobbs
Lead Independent Director6.67yrsUS$165.00k0.77%
$ 1.1m
Christine Putur
Independent Director6.67yrsUS$165.00k0.34%
$ 471.5k

9.4yrs

Average Tenure

65yo

Average Age

Experienced Board: III's board of directors are considered experienced (9.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Information Services Group, Inc.'s company bio, 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
  • Market Cap: US$140.698m
  • Shares outstanding: 48.02m
  • Website: https://www.isg-one.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 2007

Biography

Information Services Group, Inc. operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 01:44
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.