| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
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.
Rewards
Risk Analysis
Information Services Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$6.92 |
| 52 Week High | US$9.70 |
| 52 Week Low | US$3.38 |
| Beta | 0.69 |
| 1 Month Change | -6.23% |
| 3 Month Change | -8.10% |
| 1 Year Change | 75.19% |
| 3 Year Change | 68.37% |
| 5 Year Change | 101.16% |
| Change since IPO | -6.23% |
Recent News & Updates
Shareholder Returns
| III | US IT | US Market | |
|---|---|---|---|
| 7D | -2.3% | -2.4% | -0.5% |
| 1Y | 75.2% | -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
| III volatility | |
|---|---|
| III Average Weekly Movement | 6.9% |
| IT Industry Average Movement | 8.1% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2006 | 1,300 | Mike Connors | https://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
| III fundamental statistics | |
|---|---|
| Market Cap | US$339.03m |
| Earnings (TTM) | US$13.40m |
| Revenue (TTM) | US$274.65m |
25.3x
P/E Ratio1.2x
P/S RatioIs III overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| III income statement (TTM) | |
|---|---|
| Revenue | US$274.65m |
| Cost of Revenue | US$165.75m |
| Gross Profit | US$108.90m |
| Expenses | US$95.50m |
| Earnings | US$13.40m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.27 |
| Gross Margin | 39.65% |
| Net Profit Margin | 4.88% |
| Debt/Equity Ratio | 76.1% |
How did III perform over the long term?
See historical performance and comparisonDividends
1.7%
Current Dividend Yield22%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 23:25 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.