📊 III Key Takeaways
Is Information Services Group Inc. (III) a Good Investment?
Information Services Group exhibits deteriorating operational fundamentals with revenue declining 1.2% YoY and critically negative operating cash flow of -$672K despite positive net income, indicating poor earnings quality and cash generation. The company's extremely weak returns (ROE 2.9%, ROA 1.3%) and negative free cash flow of -$1.5M suggest the business cannot sustain current dividend or growth investments, positioning it as a high-risk turnaround situation in a competitive consulting sector.
ISG shows solid liquidity and strong free-cash-flow generation for a capital-light consulting model, supported by healthy interest coverage and moderate leverage. However, revenue is slightly contracting and margins are thin, limiting operating leverage until utilization and pricing improve.
Why Buy Information Services Group Inc. Stock? III Key Strengths
- Healthy gross margin of 47.6% demonstrates core service pricing power
- Strong current ratio of 2.65x provides adequate short-term liquidity buffer
- Moderate debt-to-equity ratio of 0.63x limits near-term refinancing risk
- Strong liquidity with 2.34x current ratio and ample cash
- Robust free cash flow (10.2% margin) with low capex needs
- Healthy interest coverage (11.9x) and manageable leverage (0.63x D/E)
III Stock Risks: Information Services Group Inc. Investment Risks
- Negative operating cash flow of -$672K indicates the business is not economically self-sustaining despite reporting positive net income
- Revenue declining YoY in conjunction with negative free cash flow suggests structural business deterioration
- Severely depressed returns on capital (ROE 2.9%, ROA 1.3%) indicate poor capital allocation and operational efficiency
- EPS growth of 216.7% driven by financial engineering (share buybacks) masks operational weakness and is not sustainable with negative FCF
- Top-line softness with -1.2% YoY revenue signals demand or competitive pressure
- Thin profitability (11.9% gross, 3.8% net) increases sensitivity to utilization and pricing
- EPS surge vs flat net income raises sustainability/quality concerns
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative OCF was temporary or structural
- Revenue growth trajectory - stabilization would be prerequisite for turnaround
- Free cash flow runway - company burning cash and must demonstrate path to positive FCF within 2-3 quarters
- Revenue growth (YoY)
- Operating margin (%)
Information Services Group Inc. (III) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.65x current ratio provides a solid financial cushion.
III Profit Margin, ROE & Profitability Analysis
III vs Services Sector: How Information Services Group Inc. Compares
How Information Services Group Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Information Services Group Inc. Stock Overvalued? III Valuation Analysis 2026
Based on fundamental analysis, Information Services Group Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Information Services Group Inc. Balance Sheet: III Debt, Cash & Liquidity
III Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Information Services Group Inc.'s revenue has declined by 11% over the 5-year period, indicating business contraction. The most recent EPS of $0.06 reflects profitable operations.
III Revenue Growth, EPS Growth & YoY Performance
III Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $59.6M | $1.5M | $0.03 |
| Q3 2025 | $61.3M | -$203.0K | $0.00 |
| Q2 2025 | $61.6M | -$1.4M | $-0.03 |
| Q1 2025 | $59.6M | $1.5M | $0.03 |
| Q3 2024 | $61.3M | -$203.0K | $0.00 |
| Q2 2024 | $64.3M | -$1.4M | $-0.03 |
| Q1 2024 | $64.3M | -$3.4M | $0.07 |
| Q3 2023 | $68.8M | $3.2M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Information Services Group Inc. Dividends, Buybacks & Capital Allocation
III SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Information Services Group Inc. (CIK: 0001371489)
📋 Recent SEC Filings
❓ Frequently Asked Questions about III
What is the AI rating for III?
Information Services Group Inc. (III) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are III's key strengths?
Claude: Healthy gross margin of 47.6% demonstrates core service pricing power. Strong current ratio of 2.65x provides adequate short-term liquidity buffer. ChatGPT: Strong liquidity with 2.34x current ratio and ample cash. Robust free cash flow (10.2% margin) with low capex needs.
What are the risks of investing in III?
Claude: Negative operating cash flow of -$672K indicates the business is not economically self-sustaining despite reporting positive net income. Revenue declining YoY in conjunction with negative free cash flow suggests structural business deterioration. ChatGPT: Top-line softness with -1.2% YoY revenue signals demand or competitive pressure. Thin profitability (11.9% gross, 3.8% net) increases sensitivity to utilization and pricing.
What is III's revenue and growth?
Information Services Group Inc. reported revenue of $61.2M.
Does III pay dividends?
Information Services Group Inc. pays dividends, with $2.2M distributed to shareholders in the trailing twelve months.
Where can I find III SEC filings?
Official SEC filings for Information Services Group Inc. (CIK: 0001371489) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is III's EPS?
Information Services Group Inc. has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is III a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Information Services Group Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is III stock overvalued or undervalued?
Valuation metrics for III: ROE of 2.9% (sector avg: 16%), net margin of 4.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy III stock in 2026?
Our dual AI analysis gives Information Services Group Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is III's free cash flow?
Information Services Group Inc.'s operating cash flow is $-672.0K, with capital expenditures of $841.0K. FCF margin is -2.5%.
How does III compare to other Services stocks?
Vs Services sector averages: Net margin 4.4% (avg: 10%), ROE 2.9% (avg: 16%), current ratio 2.65 (avg: 1.5).