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Information Services Group Inc(III)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 35 days
PROFIT SINCE LAST BUY
+6.25% ▲
LAST CLOSE
$5.27
09/24/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for III

09/24/2026: III (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Information Services Group (III) is a global technology research and advisory firm that helps organizations navigate digital transformation and IT sourcing. The company distinguishes itself through its independence, providing objective benchmarks and consulting without the bias of selling implementation services. Its main growth opportunity lies in advising enterprises on the adoption of AI and cloud technologies. However, investors should be aware that the firm's revenue is sensitive to cyclical swings in enterprise IT spending and intense competition from much larger consultancies. The stock may suit investors seeking a stable, dividend-paying participant in the IT services sector, though monitoring consulting demand remains essential.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is largely steady and tied to cyclical IT spending rather than high-growth explosive trends.
Momentum investorMixed fitMomentum depends on the broader market's appetite for small-cap consulting stocks.
Value investorStrong fitThe company often trades at valuations that reflect its stable cash flows and specialized market position.
Dividend investorStrong fitThe company has a consistent history of paying dividends to shareholders.
Low-risk investorMixed fitSmall-cap volatility and sensitivity to economic cycles pose risks for very conservative investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highAs a small-cap stock, price swings can be more pronounced during market turbulence.
Valuation riskMediumPerformance is tied to earnings growth and the ability to maintain consulting margins.
Competition risk (AI/Consulting)HighCompetition from larger, well-capitalized firms could pressure market share.
Business qualityMediumThe business relies heavily on human capital and expertise retention.
Dividend incomeMediumDividends are reliable but depend on consistent operating cash flow.
Execution riskMediumSuccess depends on effective delivery of high-value advisory projects.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 8.8%
Avg. Invested days 38
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/24/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
III receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
III has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+229.0%) and solid cash generation (FCF margin 10.2%) are partially offset by slightly negative revenue growth (-1.2%), soft profitability (net margin 3.8%).

Financial Health Rating

★★★★★
III's financial health is supported by solid cash strength, including free-cash-flow generation (10.2% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is III's strongest growth driver at +229.0% FY2025 versus FY2024 (strong, 5 stars). By comparison, free-cash-flow growth (+46.7%, strong) is also strong, while revenue growth (-1.2%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 69.8% and approximately 73.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 27.47% supports management-shareholder alignment.

Top 5 Institutional Investors

Private Capital Management, LLC 10.07%
HPM Partners LLC 9.61%
BlackRock Inc 5.73%
Renaissance Technologies Corp 3.90%
Vanguard Capital Management, LLC 3.70%

Unit Economics (Per $1K Revenue)

★★★★★
III generates approximately $412 of gross profit, $73 of operating income, and $102 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 35.74%

Quantitative Style Profile

★★★★★
III has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 259.01M USD
Price to earnings Ratio 22.29
1Y Target Price 6.8
Price to earnings Ratio 22.29
1Y Target Price 6.8
Volume (30-day avg) 201.7K shares
Beta 1.12
52 Weeks Range 3.67 - 6.20
Updated Date 09/23/2026
52 Weeks Range 3.67 - 6.20
Updated Date 09/23/2026
Dividends yield (FY) 3.36%
Basic EPS (TTM) 0.24

How Company Makes Money

Business areaWhat it includesRetail investor read
Research and InsightsSubscription-based market research and benchmark reports.Steady recurring income from firms paying for industry data.
Advisory ServicesContract negotiations and digital strategy consulting.Project-based revenue driven by enterprise demand for expert advice.
GeographyOperations in Americas, EMEA, and Asia Pacific.Global diversification helps mitigate regional economic downturns.

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 22.29
Forward PE 12.61
Enterprise Value 302.83M
Price to Sales(TTM) 1.03
Enterprise Value 302.83M
Price to Sales(TTM) 1.03
Enterprise Value to Revenue 1.21
Enterprise Value to EBITDA 11.55
Shares Outstanding 48.41M
Shares Floating 35.47M
Shares Outstanding 48.41M
Shares Floating 35.47M
Percent Insiders 27.47
Percent Institutions 69.8

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Information Services Group Inc

Exchange NASDAQ
Headquarters Stamford, CT, United States
IPO Launch date 2007-02-01
Chairman & CEO Mr. Michael P. Connors
Sector Technology
Industry Information Technology Services
Full time employees 1500
Full time employees 1500

Information Services Group, Inc., together with its subsidiaries, operates as an artificial intelligence (AI) centered technology research and advisory company in the Americas, Europe, and the Asia Pacific. It offers digital transformation services, including sourcing advisory and cloud and data analytics; managed governance and risk; network and software advisory; technology strategy and operations design; change management; and market intelligence. The company also provides ISG Digital, a client solution platform focused on developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in such areas as information technology, finance, human resources, and training. In addition, it offers ISG Research, which provides market analyses, provider evaluations, and data-driven insights; ISG Network and Software Advisory portfolio; and ISG GovernX, ISG Inform, and ISG Tango software platforms, as well as ISG iFlex, a delivery model for deployment of resources. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was incorporated in 2006 and is based in Stamford, Connecticut.