Analysts rate Information Services Corporation (ISV:CA:TSX) with a Buy, $31 Target

STA Research
by: STA Research

Analysts rate Information Services Corporation with a consensus Buy rating and a 12-month average target price of $31.00 per share.

STA Research  rates Information Services Corporation as a Hold and has set the target price at $25.50 on the company’s stock.

CIBC Capital Markets maintains a Neutral rating and cut the target on the stock to $25 from $30.

Based on the Information Services Corporation stock forecasts from 4 analysts, the average analyst target price for Information Services Corporation is CAD 31.00 over the next 12 months. Information Services Corporation’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Information Services Corporation is Neutral, which is based on 6 positive signals and 6 negative signals. At the last closing, Information Services Corporation’s stock price was CAD 22.80. Information Services Corporation’s stock price has changed by +0.54% over the past week, -1.94% over the past month and -3.18% over the last year.

Information Services Corporation, together with its subsidiaries, provides registry and information management services for public data and records in Canada and internationally. It operates through three segments: Registry Operations, Services, and Technology Solutions. The company was formerly known as Saskatchewan Land Information Services Corporation and changed its name to Information Services Corporation in November 2000. Information Services Corporation was founded in 2000 and is headquartered in Regina, Canada.

What we like:

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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