Information Services Group Inc Dossier
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SectorInformation Technology IndustryIT Consulting & Other Services Beta (adjusted)1.06 Intrinsic Value $5.42median of 6 methods · middle span $4-$9based on filings through 30 Jun 2026 Market Price $5.74Price as of 1 Oct 2026 Near fair valueIntrinsic value is 6% below the market price −50% · IV below pricenear fair value ±15%IV above price · +50% Data confidence Sign in to view data confidence Market Cap $277.9M Enterprise Value $313.4M Shares Outstanding 50.2M diluted Moat Rating Narrow Next Earnings Date5 Nov 2026 Last ex-dividend5 Jun 2026 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary Information Services Group (ISG) is successfully executing a strategic pivot toward becoming an AI-centered technology research and advisory firm. Following the divestiture of its lower-margin automation unit, the company has sharpened its focus on high-demand generative AI advisory and core research services. This transition is driving significant margin expansion, as evidenced by six consecutive quarters of double-digit adjusted EBITDA growth. While macroeconomic headwinds continue to cause caution in broader IT managed services, ISG's strong European momentum and surging AI-related revenues (which now represent approximately one-third of firmwide revenue) position the company for robust earnings growth. Trading at a reasonable valuation relative to historical averages and peers, ISG offers a compelling risk-reward profile with substantial upside potential. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$5.50 Mean target$6.67 High · most bullish analyst$8.00 Street targets sit above today's price; our intrinsic value sits below it. Different horizons, different questions. Our research · scenarios, merits, risks, and invalidation triggersResearch as of 20 Jun 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario $4.0020% Persistent macroeconomic uncertainty leads to prolonged delays in corporate IT spending and a contraction in discretionary advisory budgets. Competitors aggressively price their AI consulting services, eroding ISG's market share and limiting its ability to expand margins. Revenue growth stalls or turns negative, and integration challenges with recent acquisitions pressure cash flows, forcing a reduction in capital return programs. Base CaseCentral scenario $5.5050% ISG continues to capture steady demand for its AI transformation and digital advisory services, offsetting softer global trends in traditional managed services. The integrations of Aiimi and AI Maturity Index proceed smoothly, cementing ISG's position as a leading AI advisory specialist. Revenue grows at a modest single-digit rate, while disciplined cost management and productivity initiatives sustain double-digit EBITDA growth and support steady dividend payments and share repurchases. Bull CaseUpside scenario $8.0030% AI advisory demand accelerates rapidly, driving enterprise clients to transition from pilot programs to full-scale production deployments. This fuels a surge in high-margin recurring digital platform revenues and consulting fees. Europe maintains its high-growth trajectory, while the Americas region rebounds strongly. Operating leverage kicks in, pushing adjusted EBITDA margins well past 15% and driving significant EPS outperformance. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
Key Investment Risks
Thesis Invalidation Triggers
All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |