Information Services Group, Inc. (III) Stock

Information Services Group, Inc. (III) is a Technology stock trading at $5.08 (as of 2026-08-25), with a market capitalization of $243.02M and a trailing P/E of 23.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments. The company also provides ISG Digital, a client solution platform that helps clients developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in areas comprising finance, human resource, and Procure2Pay. In addition, it offers ISG GovernX, a software platform, which provides insights from market and performance data, and automates the management of third-party supplier relationships that comprise contract and project lifecycles, and risk management. 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 founded in 2006 and is based in Stamford, Connecticut.

Understand Information Services Group, Inc.: how it makes money

Information Services Group advises enterprises and governments on digital transformation, technology sourcing, and market research, earning fees from consulting engagements and its ISG Tango procurement platform. The model blends project-based advisory with recurring platform revenue, and North America drives roughly 40% of sales.

ISG monetizes advisory relationships by gating enterprise technology procurement through ISG Tango, a sourcing platform handling $5.0B in contract value, so the platform's pull-through market dwarfs the firm's own $100M revenue base.

Business quality (Mixed): A mix of advisory and platform economics with a growing recurring base, but an 8% operating margin and low single-digit growth cap near-term earnings expansion.

Valuation: Trades at 22× trailing earnings · $238M market cap.

Bull case

  • Platform flows dwarf revenue: ISG Tango routes $5.0B in sourcing contract value through its platform, meaning every advisory engagement can expand the firm's role from a one-time research fee into a recurring gate on supplier relationships and spend allocation.
  • Recurring base keeps expanding: Recurring revenue now represents 45% of firm-wide revenue, and recurring revenue grew 10% over the trailing twelve months, signaling the business is shifting from lumpy project fees toward a more predictable subscription and platform-fee core.

Bear case

  • Multiple stretched for growth: At a P/E of 22.5x, the stock prices in meaningful acceleration, yet total revenue grew only 3% year over year in the latest quarter. A multiple above 20x on low-single-digit growth leaves little margin for disappointment in an operating cycle.
  • Margins leave little cushion: Operating margin sits at just 8% on a 43% gross margin, implying roughly 35 points of overhead and SG&A. In a rate-cut or spend-cut cycle, that thin spread can compress quickly because labor costs are hard to cut fast relative to project-based revenue.
Valuation — source: SEC EDGAR (first-party)
Price$5.08
Market Cap$243.02M
P/E Ratio23.0
EV / EBITDA11.7
Price / Book2.58
Price / Sales0.99
FCF Yield9.6%
DCF Value (model)$2.83
DCF Upside vs Price-44.3%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$244.72M
Net Margin3.8%
Revenue Growth (YoY)2.7%
EPS Growth (YoY)100.0%
FCF Growth (YoY)-1173.0%
Financial Health — source: SEC EDGAR
Altman Z-Score2.39 (grey)
Piotroski F-Score7/9 (strong)
Valuation vs Sector & Industry
Stock P/E23.0
Sector P/E (Technology)34.1
Industry P/E (Business Services)30.0
vs Sector-32.6%
vs Industry-23.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderPrivate Capital Management, LLC ($17.94M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEOMichael Connors
Employees1,300
CountryUS
IPO Date2007-02-12

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III earnings history · III institutional & insider holders · III KPIs & operating metrics · III financials · III investor presentations & press releases · III SEC filings · III peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.