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III Stock Analysis 2026 - Information Services Group Inc. AI Rating

III Nasdaq Services-Management Consulting Services DE CIK: 0001371489
Recently Updated • Analysis: Apr 11, 2026 • SEC Data: 2025-12-31
HOLD
68% Conf
Pending
Analysis scheduled

📊 III Key Takeaways

Revenue: $244.7M
Net Margin: 3.8%
Free Cash Flow: $25.0M
Current Ratio: 2.34x
Debt/Equity: 0.63x
EPS: $0.19
AI Rating: HOLD with 68% confidence

Is III a Good Investment? Thesis Analysis

Claude

Information Services Group maintains adequate financial health with strong liquidity (2.34x current ratio), manageable debt (0.63x Debt/Equity with 11.9x interest coverage), and solid free cash flow generation ($25M, 10.2% FCF margin). However, declining revenue (-1.2% YoY) paired with flat net income and low returns on capital (ROE 9.9%, ROA 4.4%) signal operational stagnation without growth momentum.

Why Buy III? Key Strengths

Claude
  • + Strong liquidity position with 2.34x current/quick ratio and $28.7M cash reserves ensuring operational flexibility
  • + Excellent debt service capability with 11.9x interest coverage and manageable 0.63x Debt/Equity leverage
  • + Positive free cash flow generation of $25M (10.2% FCF margin) demonstrates ability to fund operations and reduce debt despite flat earnings

III Investment Risks to Consider

Claude
  • ! Revenue declining 1.2% YoY in management consulting sector indicates market share erosion or client demand weakness
  • ! Net income flat despite revenue contraction signals deteriorating operational leverage and inability to control cost structure
  • ! Persistently low margins (Gross 11.9%, Operating 7.3%, Net 3.8%) and weak capital returns (ROE 9.9%, ROA 4.4%) limit profit expansion potential

Key Metrics to Watch

Claude
  • * Revenue trend reversal and stabilization of client base in consulting services
  • * Operating margin expansion through cost rationalization or higher-margin service mix
  • * Debt paydown trajectory using free cash flow and path to Debt/Equity below 0.50x

III Financial Metrics

Revenue
$244.7M
Net Income
$9.3M
EPS (Diluted)
$0.19
Free Cash Flow
$25.0M
Total Assets
$211.0M
Cash Position
$28.7M

💡 AI Analyst Insight

Strong liquidity with a 2.34x current ratio provides a solid financial cushion.

III Profitability Ratios

Gross Margin 11.9%
Operating Margin 7.3%
Net Margin 3.8%
ROE 9.9%
ROA 4.4%
FCF Margin 10.2%

III vs Default Sector

How Information Services Group Inc. compares to Default sector averages

Net Margin
III 3.8%
vs
Sector Avg 12.0%
III Sector
ROE
III 9.9%
vs
Sector Avg 15.0%
III Sector
Current Ratio
III 2.3x
vs
Sector Avg 1.8x
III Sector
Debt/Equity
III 0.6x
vs
Sector Avg 0.7x
III Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is III Overvalued or Undervalued?

Based on fundamental analysis, Information Services Group Inc. shows some fundamental concerns relative to the Default sector in 2026.

Return on Equity
9.9%
Sector avg: 15%
Net Profit Margin
3.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.63x
Sector avg: 0.7x

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.

III Balance Sheet & Liquidity

Current Ratio
2.34x
Quick Ratio
2.34x
Debt/Equity
0.63x
Debt/Assets
55.1%
Interest Coverage
11.86x
Long-term Debt
$59.2M

III 5-Year Financial Trend & Growth Analysis

III 5-year financial data: Year 2021: Revenue $277.8M, Net Income $2.8M, EPS $0.06. Year 2022: Revenue $286.3M, Net Income $15.5M, EPS $0.30. Year 2023: Revenue $291.1M, Net Income $15.5M, EPS $0.30. Year 2024: Revenue $291.1M, Net Income $6.2M, EPS $0.12. Year 2025: Revenue $247.6M, Net Income $2.8M, EPS $0.06.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.2%
Free cash flow / Revenue

III Quarterly Performance

Quarterly financial performance data for Information Services Group Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $70.7M $2.3M $0.05

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

III Capital Allocation

Operating Cash Flow
$29.0M
Cash generated from operations
Stock Buybacks
$9.3M
Shares repurchased (TTM)
Capital Expenditures
$4.0M
Investment in assets
Dividends Paid
$9.2M
Returned to shareholders

III SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Information Services Group Inc. (CIK: 0001371489)

📋 Recent SEC Filings

Date Form Document Action
Apr 3, 2026 4 xslF345X06/form4-04032026_010407.xml View →
Apr 3, 2026 4 xslF345X06/form4-04032026_010405.xml View →
Apr 3, 2026 4 xslF345X06/form4-04032026_010403.xml View →
Apr 3, 2026 4 xslF345X06/form4-04032026_010401.xml View →
Mar 19, 2026 4 xslF345X06/form4-03192026_040309.xml View →

Frequently Asked Questions about III

What is the AI rating for III?

Information Services Group Inc. (III) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are III's key strengths?

Claude: Strong liquidity position with 2.34x current/quick ratio and $28.7M cash reserves ensuring operational flexibility. Excellent debt service capability with 11.9x interest coverage and manageable 0.63x Debt/Equity leverage.

What are the risks of investing in III?

Claude: Revenue declining 1.2% YoY in management consulting sector indicates market share erosion or client demand weakness. Net income flat despite revenue contraction signals deteriorating operational leverage and inability to control cost structure.

What is III's revenue and growth?

Information Services Group Inc. reported revenue of $244.7M.

Does III pay dividends?

Information Services Group Inc. pays dividends, with $9.2M 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 $0.19.

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 April 2026, Information Services Group Inc. has a HOLD rating with 68% 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 9.9% (sector avg: 15%), net margin of 3.8% (sector avg: 12%). 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 HOLD 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 $29.0M, with capital expenditures of $4.0M. FCF margin is 10.2%.

How does III compare to other Default stocks?

Vs Default sector averages: Net margin 3.8% (avg: 12%), ROE 9.9% (avg: 15%), current ratio 2.34 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 11, 2026 | Data as of: 2025-12-31 | Powered by Claude AI