III
Information Services Group Inc.
Next earnings Aug 4, 2026 · consensus $0.09 EPS, $63.5M rev
Last earnings +0.7% on 2026-05-07
$4.11
▲ +0.49%$4.11▼ -8.14%
over 1Y
L $3.72H $5.97
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.5%
1W+1.2%
1M-8.3%
3M+4.9%
YTD-24.7%
1Y-8.1%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 7 analysts
Buy
Cheap cash generator paying a ~4.7% dividend and buying back stock, but two years of falling revenue and leveraged, covenant-bound balance sheet cap it.
Revenue (FY2025) $245M · FY2025
The read
Middling fundamentals offset by an attractive price (~76% below fair value) — worth a look on the value angle.
ISG is a global technology-sourcing research and advisory firm (900+ clients, 75 of the world's top 100 enterprises, ~1,500 professionals) whose numbers tell a two-sided story. The bull case is cash and value: FY2025 operating cash flow jumped 46% to $29.0M against just $4.02M of capex, so free cash flow of roughly $25M is about a 13% yield on the $196M market cap. Management returned nearly all of it — $9.18M in dividends (a ~4.7% yield) and $9.27M in buybacks (up 66%). At 0.8x sales the stock is cheap on the top line, net income rebounded 229% to $9.34M, operating income more than tripled to $17.8M, and cash grew 24% to $28.7M. That is a genuinely undervalued, shareholder-friendly cash machine.
The bear case is the trajectory and the debt. Revenue has now fallen two straight years, from a $291M peak in 2023 to $248M in 2024 to $245M in 2025, and 2025's $9.34M of net income is still barely half the $15.5M–$19.7M earned in 2021–2022 — the 'recovery' is off a depressed 2024 base ($2.84M), not a return to prior form. The business is utilization- and project-driven with low forward predictability, and the MD&A flags that discretionary-spending cuts at top accounts and macro weakness in the sourcing market are the key risks to growth. The 21.6x P/E on rebound earnings is not obviously cheap if the top line keeps eroding.
Is III a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~4.11
- Short call 4.5 @ ~0.09 est
debit $402max +$48max −$401BE 4.02
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $278M | $286M | $291M | $248M | $245M |
| Gross profit | — | — | — | — | — |
| Operating income | $25.3M | $29.5M | $14.6M | $5.76M | $17.8M |
| Net income | $15.5M | $19.7M | $6.15M | $2.84M | $9.34M |
| Diluted EPS | $0.30 | $0.39 | $0.12 | $0.06 | $0.19 |
| Net margin | 5.6% | 6.9% | 2.1% | 1.1% | 3.8% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$231M
EV / EBITDA10.4
EV / Sales0.9
EV / FCF9.3
P / FCF7.9
PEG (trailing)0.09
Earnings yield4.8%
FCF yield12.7%
Quality & risk
ROIC (est.)8.9%
Free cash flow$25.0M
Total debt$63.5M
Net cash-$34.8M
Altman Z-Score2.16 grey
Piotroski F-Score6/8
Capital returns
Buyback yield4.7%
Dividend yield (est.)4.7%
Shareholder yield9.4%
Shares Δ YoY-1.2%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 10-Q Quarterly report2026-05-08
Q1 FY26 10-Q; $59.2M debt, buybacks and dividend continue
- 8-K Earnings results2026-05-07
Q1 FY26 results released; revenue soft but profitability holding after FY25 rebound
- 8-K Shareholder vote2026-04-27
Annual meeting: directors elected, say-on-pay and auditor ratified
- DEF 14A Proxy statement2026-03-11
Annual proxy: board slate, exec comp and auditor up for 2026 vote
- 10-K Annual report2026-03-06
FY25 10-K: revenue -1.2% to $245M but net income +229% to $9.3M
- 8-K Earnings results2026-03-05
Q4/FY25 results: net income surged to $9.3M (+229%) on cost discipline
- 8-K Earnings results2025-11-03
Q3 25 10-Q; earnings recovering, revenue roughly flat
- 10-Q Quarterly report2025-11-03
Q3 25 10-Q; earnings recovering, revenue roughly flat
- 10-Q Quarterly report2025-08-07
Q2 25 10-Q; demand soft, margins stabilizing
Recent filings
all on EDGAR ↗4Period ending 2026-06-012026-06-03open ↗4Period ending 2026-06-012026-06-03open ↗4Period ending 2026-06-012026-06-03open ↗4Period ending 2026-06-012026-06-03open ↗10-QPeriod ending 2026-03-312026-05-08open ↗8-KPeriod ending 2026-05-072026-05-07open ↗8-KPeriod ending 2026-04-242026-04-27open ↗4Period ending 2026-04-012026-04-03open ↗4Period ending 2026-04-012026-04-03open ↗4Period ending 2026-04-012026-04-03open ↗4Period ending 2026-04-012026-04-03open ↗4Period ending 2026-03-172026-03-19open ↗
Frequently asked
- Is Information Services Group Inc. (III) a buy?
- III currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Cheap cash generator paying a ~4.7% dividend and buying back stock, but two years of falling revenue and leveraged, covenant-bound balance sheet cap it.
- What is III's fair value?
- A Modified-Graham model based on III's SEC fundamentals estimates a fair value of about $7.22. It is an estimate from reported earnings, not a price target.
- Is III overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, III currently appears undervalued relative to its SEC-grounded earnings power.
- What is Information Services Group Inc.'s quality score?
- III scores 63.476059358567355/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001371489, latest 10-Q filed 2026-05-08) · EODHD · Proprietary analysis · as of 7/3/2026, 11:33:05 AM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jul 3, 2026, 7:33 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.