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Information Services Group, Inc.

Rank #77ValueWatchlistCompare with other stocks

III · Nasdaq · Technology

Information Services Group, Inc. (III) — Rank #77 by gross profitability (GP/assets 0.52) · ROE 9.7% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0001371489 · all metrics point-in-time as of the filing date.

About

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.

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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.

Industry
Information Technology Services
Sector
Technology
State
DE
Filer Category
Accelerated filerSmaller reporting company
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,500

Industry

Information Technology Services

Exchange

Nasdaq

11/12

Flags passed

III fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.52
Return on equity
9.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.14
Current ratio
2.81×
Net cash
-$35.50M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.2%

Growth

1/2 pass
Revenue growth
-1.2%
Piotroski F-Score
6 / 9
Share dilution
0.6%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 0.52

Gross profitability (GP / assets)

0.52

Primary signal (Novy-Marx).

2nd of 7 SIC 87 peers

Return on equity

9.7%

Gross margin

43.1%

3rd of 7 SIC 87 peers

Revenue growth (YoY)

-1.2%

RPO growth (YoY)

8.9%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-5.1%

Revenue CAGR (5Y)

-0.4%

Earnings CAGR (3Y)

-22.1%

FCF CAGR (3Y)

47.9%

Cash Flow Health

Is the cash real?

No warning flags · FCF 168% above net income

Free cash flow

$24.99M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

167.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.2%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $35.50M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.14

5th of 7 SIC 87 peers (best = lowest)

Current ratio

2.81×

2nd of 7 SIC 87 peers

Quick ratio

—

Net cash

-$35.50M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

1.5 / 5

Weak
Payout ratio
98.3%1/5 Weak
FCF coverage
2.72×4/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.14 · IC N/A1/5 Weak

Capital allocation quality

Composite score

2.0 / 5

Fair
Share count trend
0.6%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory(deleveraging)
4.7%4/5 Strong

Lifecycle Phase History

20202025
Decline
Capital Return
Value

Price History

III-18.7% · -4.0% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports