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Information Services Group, Inc.

Rank #78Hypergrowth

III · Nasdaq · Technology

Information Services Group, Inc. (III) — Rank #78 by gross profitability (GP/assets 0.52) · ROE 9.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · 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

Price History

III-15.2% · -3.3% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$259.74M

P/E (annual)

28.2

P/S (annual)

1.1

P/B

2.7

P/OCF (annual)

9.0

Shareholder Yield

-35.3%

Employees

1,500

Industry

Information Technology Services

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

GP / assets
0.52
Return on equity
9.7%
Gross margin trend
N/A

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
32.7%
Piotroski F-Score
N/A
Share dilution
38.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-0.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 38.8% — per-share value needs a total required return of 38.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 19.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-4.6%

r = 10% (base)

-0.8%

r = 12%

2.5%

Net debt / market cap: 13.1%

Base FCF: $25M3Y mean FCF: $8.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

12.8xCheap
12.8xmed 32.9x87.5x

P / S

Price / revenue per share

0.9xExpensive
0.3xmed 0.6x1.4x

P / B

Price / book value per share

2.5xExpensive
0.7xmed 2.1x3.8x

P / GP

Price / gross profit per share

2.2xFair
1.1xmed 2.2x3.5x

P / FCF

Price / free cash flow per share

32.6xExpensive
5.2xmed 10.2x32.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.52

Primary signal (Novy-Marx).

1st of 5 SIC 87 peers

Return on equity

9.7%

Gross margin

43.1%

2nd of 5 SIC 87 peers

Revenue growth (YoY)

32.7%

Gross margin improving

Margin trend vs prior year.

N/A

Operating Leverage

2012202020212022
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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.14

3rd of 5 SIC 87 peers (best = lowest)

Current ratio

2.81×

1st of 5 SIC 87 peers

Quick ratio

—

Net cash

-$35.50M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$24.99M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.68

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.2%

Stock-based comp intensity.

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

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20102022
Value
Hypergrowth
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