One-glance verdict
Undervalued
$10.21 our estimate vs market $5.74
Wall Street consensus: $6.80 (-33.4% lower than our fair-value estimate)
44% below our estimate, below the bear case
Fundamentals snapshot
Information Services Group, Inc.
III · NGM · Technology · Information Technology Services
Current price
$5.74
52-week range
$3.74 - $6.45
Market cap
$277.89M
Balance sheet
Watch
4.38x Stretched
Net debt $43.82M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.3% last year.
- Reward Returns 12.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 10.3% to 8.9% over 3 years.
What this company does
Information Services Group, Inc.
Information Services Group is a technology research and advisory company that helps other businesses and governments make smarter tech decisions. The company earns money by charging clients for expert guidance on things like using artificial intelligence and choosing the right software. This matters because as technology gets more complex, organizations are often willing to pay for outside help to ensure they are spending their money wisely on the right tools.
How the company got here
Information Services Group (ISG) was started in 2006 with the goal of becoming a go-to source for advice on technology and business services. It grew quickly by buying other expert companies, including a pioneer in advising on outsourcing deals (when a company hires another company to handle certain tasks) and a leader in IT benchmarking (comparing a company's technology performance against others). Over the years, ISG combined these acquired businesses under its single brand to offer a unified service to clients worldwide. More recently, the company has made strategic acquisitions to strengthen its expertise in software research and artificial intelligence, reflecting the changing needs of its clients.
What it actually does
Think of ISG as a team of expert consultants and researchers that other companies hire to help with big technology decisions. For example, if a large bank wants to move its data to the cloud or use artificial intelligence (AI) to improve customer service, it might hire ISG for advice on the best way to do it and which vendors to use. ISG provides data, analysis, and strategic guidance to help businesses operate more efficiently and grow faster. Their clients range from large corporations in manufacturing and banking to public sector organizations like local governments.
ISG Research
This part of the business acts like a library of expert knowledge that clients can subscribe to. ISG's team of analysts (experts who study market trends) constantly researches the technology industry, evaluating software and service providers. Companies pay for access to this research through reports and data platforms to get independent, data-driven insights that help them make smarter technology investment decisions. This is a growing part of ISG's business that generates recurring revenue (income that is predictable and likely to continue in the future).
ISG Sourcing & Advisory
This is the company's core consulting service, where it provides hands-on advice to help clients with major technology projects. This often involves 'sourcing,' which means helping a client choose the right technology vendors and negotiate contracts for large-scale projects like moving to the cloud or outsourcing IT operations. Companies pay ISG for its deep market knowledge and experience to ensure their digital transformation (a fundamental change in how an organization delivers value using new technologies) is successful and cost-effective. This segment helps clients manage risk and get the most value from their technology spending.
ISG Platforms
Beyond reports and direct advice, ISG also offers its data and expertise through software platforms. These tools allow clients to access ISG's vast library of market data and analysis on their own. For example, a client might use a platform to benchmark their IT spending against their peers or to assess how ready their employees are to adopt new AI tools. This is another way ISG delivers its expertise, often through a subscription model, providing clients with ongoing access to valuable information.
What management is betting on now
Management is heavily focused on positioning ISG as a leader in the field of artificial intelligence. They are investing in new tools, like an 'AI Maturity Index' to help clients figure out how prepared they are for AI, and have created a special unit to accelerate AI-related services. The company's strategy is to be the trusted partner that helps businesses cut through the hype and make smart investments in AI to improve their operations. This focus on AI is central to their plan for future growth, alongside helping clients with cost optimization and digital transformation.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$8.41M
FY2024 Q4
$6.03M
FY2025 Q1
$141.00K
FY2025 Q2
$11.08M
FY2025 Q3
$9.46M
FY2025 Q4
$4.31M
FY2026 Q1
$-1.51M
FY2026 Q2
$4.69M
Revenue
$65.49M
Net income
$3.30M
Diluted EPS
0.07
Operating cash flow
$5.21M
Free cash flow
$4.69M
Fetching…
Sources
Revenue
$61.18M
Net income
$2.72M
Diluted EPS
0.05
Operating cash flow
$-672.00K
Free cash flow
$-1.51M
Fetching…
Sources
Revenue
$61.21M
Net income
$2.61M
Diluted EPS
0.06
Operating cash flow
$5.06M
Free cash flow
$4.31M
Fetching…
Sources
Revenue
$62.36M
Net income
$3.06M
Diluted EPS
0.06
Operating cash flow
$11.05M
Free cash flow
$9.46M
Fetching…
Sources
Revenue
$61.56M
Net income
$2.18M
Diluted EPS
0.04
Operating cash flow
$11.92M
Free cash flow
$11.08M
Fetching…
Sources
Revenue
$59.58M
Net income
$1.49M
Diluted EPS
0.03
Operating cash flow
$978.00K
Free cash flow
$141.00K
Fetching…
Sources
Revenue
$57.78M
Net income
$3.04M
Diluted EPS
0.07
Operating cash flow
$6.55M
Free cash flow
$6.03M
Fetching…
Sources
Revenue
$61.28M
Net income
$1.15M
Diluted EPS
0.02
Operating cash flow
$8.80M
Free cash flow
$8.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.21 vs current price $5.74
Wall Street consensus is the average analyst price target: $6.80 (-33.4% lower than our fair-value estimate).
Our most-likely fair value is $10.21 a share — about 78.0% above today's price of $5.74, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $43.8M. Interest coverage 4.4x.
Net debt
$43.82M
Interest coverage
4.38x
Information Services Group, Inc.'s profit covers its interest bill about 4.4 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
III
BASELINE
Information Services Group, Inc.
Total debt $67.50M Interest coverage 4.38x This is the baseline the peer rows are being compared against.
Total debt $83.03M Interest coverage 15.53x +255% vs III Carries about 3.5x more debt cushion than III.
Total debt $63.99M Interest coverage 0.73x -83% vs III Carries about 6.0x less debt cushion than III.
Total debt $143.33M Interest coverage 4.59x +5% vs III Has roughly the same debt cushion as III.
Total debt $22.52M Interest coverage -54.10x -100% vs III This peer has almost no interest-payment cushion compared with III.
Total debt $16.71M Interest coverage -0.09x -100% vs III This peer has almost no interest-payment cushion compared with III.
What you should know
The case for and against III
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.3% last year.
-
Returns 12.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 10.3% to 8.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.92x
Forward P/E
13.05x
P/B
2.90x
P/S
1.11x
EV/EBITDA
12.88x
PEG ratio
0.82x
Profitability
How much profit each dollar creates
Gross margin
44.8%
Operating margin
8.9%
Net margin
4.7%
ROE
12.3%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
2.81x
Quick ratio
2.62x
Total debt
$67.50M
Total cash
$23.68M
Growth
How the business has been compounding
Revenue TTM
$250.25M
Revenue 5Y CAGR
-3.1%
EPS TTM
0.24
EPS 5Y CAGR
-21.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$20.65M
Free CF TTM
$24.99M
FCF margin
10.0%
Dividend
Shareholder payout
Yield
3.1%
Payout ratio
75.0%
Last ex-div date
2026-09-04