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Information Services
(TSX:ISC)
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Rating:72Outperform
Price Target:
C$57.00
▲(27.35% Upside)
Action:Reiterated
Date:07/03/26
The score is driven primarily by solid financial performance—strong margins and healthy free cash flow—offset by higher leverage and some margin/cash-conversion variability. Technicals add support given the clear uptrend versus major moving averages and positive MACD. Valuation is reasonable (P/E ~19.3) with a modest dividend yield (~1.8%), but not compelling enough to materially lift the overall score.
Positive Factors
High Profitability
Sustained high operating and EBITDA margins indicate durable pricing power and an efficient cost structure relative to peers. Strong margins support internal reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning long-term cash generation and shareholder returns.
Negative Factors
Elevated Leverage
Material debt relative to equity raises financial risk and reduces strategic flexibility. Higher leverage increases interest and refinancing exposure if conditions tighten, constraining capital allocation for M&A or R&D and heightening downside risk if operating performance softens.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high operating and EBITDA margins indicate durable pricing power and an efficient cost structure relative to peers. Strong margins support internal reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning long-term cash generation and shareholder returns.
Read all positive factors
Information Services (ISC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$950.92M
Dividend YieldN/A
Average Volume (3M)14.84K
Price to Earnings (P/E)19.3
Beta (1Y)0.24
Revenue Growth4.00%
EPS Growth2.03%
CountryCA
Employees564
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.53
Shares Outstanding18,700,481
10 Day Avg. Volume11,933
30 Day Avg. Volume14,837
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)4.45
Price to Sales (P/S)3.36
P/FCF Ratio12.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$51.00Price Target Upside13.94% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.91
Revenue Forecast (FY)C$274.80M
Information Services Business Overview & Revenue Model
Company Description
Information Services Corporation (ISC) specializes in comprehensive registry and information management services for public data and records throughout Canada. Its operations are structured into three key segments: Registry Operations, Services, a...
How the Company Makes Money
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Information Services Earnings Call Summary
Earnings Call Date:Nov 06, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in revenue and adjusted EBITDA, particularly in the Registry Operations and Technology Solutions segments. However, challenges such as the Ontario NOSI ban and increased expenses were noted, along with a decrease in cash holdings. Despite these challenges, the company remains confident in achieving its annual guidance.Positive Updates
Revenue and EBITDA Growth
Revenue increased by 12% and adjusted EBITDA increased by 18% compared to the third quarter of 2023.
Negative Updates
Impact of Ontario's NOSI Ban
Revenue and adjusted EBITDA marginally lower in the Services segment due to a ban on Notice of Security Interests by the Government of Ontario.
Read all updates
Q3-2024 Updates
Positive
Negative
Revenue and EBITDA Growth
Revenue increased by 12% and adjusted EBITDA increased by 18% compared to the third quarter of 2023.
Read all positive updates
Company Guidance
During the ISC Q3 2024 earnings call, the company reiterated its annual guidance for 2024, projecting revenue between $240 million and $250 million, with adjusted EBITDA anticipated to range from $83 million to $91 million. This guidance reflects strong performance, driven by a 12% increase in revenue and an 18% rise in adjusted EBITDA compared to the third quarter of 2023. Despite challenges, such as the Ontario government's ban on Notice of Security Interests (NOSIs), which affected their collateral management offering, ISC reported growth in various segments. The Registry Operations segment saw revenue and adjusted EBITDA increase by 16% and 23%, respectively, while the Technology Solutions segment achieved a $3.4 million increase in revenue and a $1.5 million rise in adjusted EBITDA. The company also noted a decrease in net cash flow provided by operating activities to $14.2 million, down from $14.6 million in the same quarter last year, but adjusted net income improved to $11 million from $8.4 million.Information Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 260.27M | 257.77M | 247.37M | 214.52M | 189.90M | 169.38M |
| Gross Profit | 126.14M | 179.56M | 165.05M | 62.27M | 58.42M | 55.45M |
| EBITDA | 84.48M | 79.90M | 79.35M | 69.64M | 61.39M | 60.67M |
| Net Income | 28.43M | 26.75M | 20.24M | 25.05M | 30.77M | 32.08M |
Balance Sheet | ||||||
| Total Assets | 515.57M | 516.58M | 520.02M | 536.32M | 283.45M | 232.50M |
| Cash, Cash Equivalents and Short-Term Investments | 21.37M | 19.49M | 20.99M | 24.19M | 34.48M | 40.14M |
| Total Debt | 162.04M | 165.56M | 174.65M | 187.17M | 74.85M | 50.01M |
| Total Liabilities | 316.32M | 322.14M | 339.75M | 367.54M | 127.87M | 94.79M |
| Stockholders Equity | 199.25M | 194.44M | 180.28M | 168.78M | 155.59M | 137.71M |
Cash Flow | ||||||
| Free Cash Flow | 75.24M | 67.95M | 62.87M | 56.38M | 42.07M | 58.98M |
| Operating Cash Flow | 82.60M | 77.57M | 71.18M | 56.77M | 43.54M | 61.21M |
| Investing Cash Flow | -9.45M | -9.09M | -8.28M | -154.89M | -55.62M | -366.00K |
| Financing Cash Flow | -68.55M | -70.12M | -66.20M | 87.80M | 6.25M | -54.27M |
Information Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$866.33M | 19.04 | 16.00% | 3.02% | 6.54% | 44.56% | |
72 Outperform | C$950.92M | 19.33 | 15.44% | ― | 4.00% | 2.03% | |
71 Outperform | C$822.56M | 22.09 | 12.54% | 7.14% | 10.83% | 30.66% | |
67 Neutral | C$652.33M | 10.88 | 11.63% | 5.09% | -3.59% | 50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$976.70M | 29.02 | 10.35% | 1.98% | 11.71% | 76473.68% |
* Industrials Sector Average
TSE:ISC
Information Services
51.00
19.17
60.20%
TSE:CGY
Calian Group
83.72
34.29
69.36%
TSE:DIV
Diversified Royalty Corp
4.69
1.68
55.71%
TSE:DXT
Dexterra Group
14.09
5.11
56.96%
TSE:WJX
Wajax Corporation
31.12
8.92
40.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.