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what it is
Information Services Group sells tech advice to companies trying to modernize old systems and outsource work without breaking everything.
how it gets paid
Last year Information Services made $245M in revenue. Digital transformation services was the main engine at $73.5M, or 30% of sales.
why growth slowed
Revenue fell 1.2% last year. The number that matters is $0.06, because that is both the latest quarter's EPS and the full FY2024 EPS estimate.
what just happened
The headline number was $0.06 in Q4 EPS, which capped a FY2024 profit total of just $0.06 per share.
At a glance
B balance sheet — gets the job done, barely
35/100 earnings predictability — expect surprises
30.1x trailing p/e — you're paying up for this one
4.5% dividend yield — cash in your pocket every quarter
3.7% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Information Services Group sells tech advice to companies trying to modernize old systems and outsource work without breaking everything.
This business wins because big companies keep hiring outside help when tech projects get messy. ISG serves clients across the Americas, Europe, and Asia Pacific with 1,289 employees, which gives you scale without mega-cap overhead. Switching costs → changing advisors mid-project is painful → so what: clients often stick around when the work touches cloud, sourcing, and operations at once.
How they make money
$245M
annual revenue · their business grew -1.2% last year
Digital transformation services
$73.5M
Sourcing advisory
$53.9M
Managed governance and risk
$39.2M
Technology strategy and operations design
$34.3M
Market intelligence and technology research
$24.5M
Network carrier services
$19.6M
The products that matter
technology research and advisory
Technology Research & Advisory
$245M trailing revenue base
it's the whole $245M revenue base, and it converts that into a 4.7% operating margin. this is expertise sold through people, relationships, and billable work — not a scalable software model.
entire business
Key numbers
4.5%
dividend yield
You are being paid to wait, but the payout is large relative to profit, so income is the story and the risk.
$248M
fy2024 sales
This is a small consulting business, which means a few large client wins or losses can move the whole company.
4.7%
operating margin
Margin is what is left after running the business. At 4.7%, there is not much cushion.
$59M
long-term debt
Debt equals about 24% of capital, which matters more when return on capital is only 3.7%.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 40 / 100
- long-term debt $59M (24% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for III right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The headline number was $0.06 in Q4 EPS, which capped a FY2024 profit total of just $0.06 per share.
Quarterly EPS moved from -$0.06 in Q4 2023 to $0.06 in Q4 2024. Annual revenue was $245M, down 1.2% vs. prior year, so the rebound came from profit recovery more than top-line growth.
$245M
revenue
$0.06
q4 eps
4.7%
operating margin
the number that mattered
The number that matters is $0.06, because that is both the latest quarter's EPS and the full FY2024 EPS estimate. That tells you how thin the earnings base still is.
source: company filings and consensus data, 2024
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What could go wrong
the top threat is enterprise tech-spending hesitation hitting the advisory book. when growth is already scarce, even a small demand wobble matters.
med
revenue stays flat or slips again
The page gives you a $245M trailing base and a $248M estimate. That is basically no growth. Americas, the biggest region at $137M, is already down 2.1%.
With a 4.7% operating margin, you do not need a dramatic slowdown to pressure earnings.
med
cash returns outrun operating progress
Last quarter brought $2.2M in dividends and $2.3M in buybacks. Shareholders like that. The question is whether a flat business should keep paying out at that pace.
If demand softens, the 4.5% yield becomes less comforting because it competes with balance-sheet flexibility.
med
the multiple assumes more quality than the returns show
III trades at 30.1x trailing earnings while earning 3.7% on capital and posting just 35/100 earnings predictability. Those are not premium-quality economics.
If earnings wobble, the stock can re-rate lower even if the business does not break.
When a $192M company earns a 4.7% operating margin and trades at 30.1x trailing earnings, you do not need a big miss to feel it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth
americas revenue needs to stop shrinking
At $137M, the Americas is the largest region. A 2.1% decline there overwhelms tiny gains elsewhere.
capital returns
dividend and buyback pace
Monitor whether the recent $4.5M quarterly payout pace continues if revenue stays around the $245M–$248M range.
margin
thin operating margin leaves little room
A 4.7% operating margin is workable, but not forgiving. Small demand misses can do more damage than they look like on the surface.
calendar
2026 annual stockholder meeting
Directors, executive pay, and the auditor are up for a vote. The date is still to be announced in this snapshot.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts do not view these earnings as especially dependable.
risk rank
2
on this scale, 2 means financially safer than many small caps even if the growth story is weak.
xvary composite
60 / 100
average score. Not broken. Not obviously mispriced either.
source: institutional data
Institutional activity
institutional ownership data for III is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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