Information Services Group, Inc.
Information Services Group, Inc. Fundamental Analysis
Information Services Group, Inc. (III) shows weak financial fundamentals with a PE ratio of 24.93, profit margin of 4.05%, and ROE of 10.28%. The company generates $0.2B in annual revenue with weak year-over-year growth of -14.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze III's fundamental strength across five key dimensions:
Efficiency Score
WeakIII struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIII trades at attractive valuation levels.
Growth Score
WeakIII faces weak or negative growth trends.
Financial Health Score
ExcellentIII maintains a strong and stable balance sheet.
Profitability Score
WeakIII struggles to sustain strong margins.
Key Financial Metrics
Is III Expensive or Cheap?
P/E Ratio
III trades at 24.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, III's PEG of 1.00 indicates potential undervaluation.
Price to Book
The market values Information Services Group, Inc. at 2.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.41 times EBITDA. This is generally considered low.
How Well Does III Make Money?
Net Profit Margin
For every $100 in sales, Information Services Group, Inc. keeps $4.05 as profit after all expenses.
Operating Margin
Core operations generate 5.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.28 in profit for every $100 of shareholder equity.
ROA
Information Services Group, Inc. generates $4.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Information Services Group, Inc. produces operating cash flow of $28.86M, showing steady but balanced cash generation.
Free Cash Flow
Information Services Group, Inc. generates strong free cash flow of $25.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
III converts 11.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How III Stacks Against Its Sector Peers
| Metric | III Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.93 | 35.19 | Better (Cheaper) |
| ROE | 10.28% | 1155.00% | Weak |
| Net Margin | 4.05% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.22 | 4.71 | Strong Liquidity |
| ROA | 4.58% | -314918.00% (disorted) | Weak |
III outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Information Services Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-10.41%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-18.28%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-6.52%
Industry Style: Growth, Innovation, High Beta
Declining