Stock fact sheet · data as of
Information Services Group, Inc. (III): fair value, margin of safety and Wheel Score
Industrials · Specialty Business Services · United States · Blend
Is III undervalued?
At 5.70 (close of 16 Oct 2026), III trades 20% over the GLS average fair value of 4.76. 2 of the 9 models land above the price and 7 below. A negative margin of safety costs Value points in the Wheel Score (4 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
There is a wide gap between GLS Growth (1.47) and Graham Growth (11.94). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files III under Blend.
Nine valuation models for III
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 2.79 | -51% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 3.30 | -42% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 11.94 | +109% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 5.07 | -11% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.47 | -74% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 7.82 | +37% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 5.07 | -11% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 2.65 | -54% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.70 | -53% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.4597 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 5.50 | -4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Information Services Group, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.9/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.7%, ROE 9.9%, ROA 4.4% - with debt at 0.74 times equity and a free-cash-flow yield of 4.1%.
The dividend yield is 3.16% at a payout ratio of 78%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 5.7% |
|---|---|---|---|
| GLS Moat | 4.9 / 10 | ROE | 9.9% |
| Debt / equity | 0.74 | ROA | 4.4% |
| Free-cash-flow yield | 4.1% | Payout ratio | 78% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 55: Fair
A Wheel Score of 55 puts Information Services Group, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 4/25, Health 18/20, Moat 7/15, Premium 19/20 and Stability 7/20; the weakest part is Value (4/25).
Implied volatility is 64% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 1,535 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 126k shares a day on a market cap of $276M, with a beta of 1.13; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 4 / 25 | -20% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 7 / 15 | moat 4.9/10 | |
| Premium | 19 / 20 | implied volatility 64% | |
| Stability | 7 / 20 | 126k shares/day, $276M cap, beta 1.13 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Business Services
The 12 companies below are the closest to Information Services Group, Inc. by market cap within the Specialty Business Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ZUUS Zeuus, Inc. | 2.50 | - | - | 23No options | $264M |
| SPIR Spire Global, Inc. | 9.25 | - | - | 41Weak | $362M |
| ACTG Acacia Research Corporation | 4.23 | 3.68 | -15% | 45Weak | $413M |
| PHCI Panamera Holdings Corporation | 2.11 | 0.0098 | -21489% | 4No options | $169M |
| QUAD Quad/Graphics, Inc. | 9.29 | 10.58 | +12% | 65Good | $478M |
| BUUU BUUU Group Ltd | 43.49 | 1.54 | -2720% | 20No options | $509M |
| EBF Ennis, Inc. | 22.42 | 23.60 | +5% | 53Fair | $568M |
| TISI Team, Inc. | 24.65 | 99.95 | +75% | 39No options | $113M |
| CASS Cass Information Systems, Inc. | 54.29 | 56.98 | +5% | 62Fair | $695M |
| TRNS Transcat, Inc. | 82.37 | 23.03 | -258% | 43Weak | $771M |
| PAYS Paysign, Inc. | 15.16 | 12.37 | -23% | 56Fair | $856M |
| RHLD Resolute Holdings Management, Inc. | 112.99 | 344.42 | +67% | 39No options | $884M |
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Start free See the Sunday ScanQuestions about III
Is III undervalued right now?
No: at 5.70 the stock trades 20% above the GLS average fair value of 4.76 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of III and what does it mean?
III scores 55 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for III?
4.76 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Information Services Group, Inc. report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does III have listed options, and how liquid are they?
Yes. The nightly snapshot found 40 listed contracts with 1,535 open interest across all expiries and implied volatility of 64% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.