Latest news with #InformationServices
The Citizen
6 days ago
- Business
- The Citizen
JSE All Share Index hit 100k points
The All Share Index is like a scoreboard for the JSE, displaying the performance of all the major companies listed collectively. The Johannesburg Stock Exchange (JSE) All Share Index (ALSI) hit 100 000 points on Wednesday, which is 1 000 times higher than its starting value of 100 points in January 1960. JSE ALSI is a premier stock market index, tracking the performance of all listed companies on the JSE. It's a capitalisation-weighted index that includes companies from various sectors, such as mining, finance, retail and telecommunications. In simple terms, it is like a scoreboard for the JSE, displaying the performance of all the major companies listed collectively. ALSO READ: Investing in JSE shares: What you need to know JSE ALSI 65-year journey Leila Fourie, Group CEO of the JSE, says reaching 100 000 points shows that investors keep placing their trust in the South African market and in the ability of the listed companies to drive growth and deliver value. 'Over its 65-year journey, the ALSI has delivered annualised returns of over 11%, reflecting the resilience and growth of South Africa's capital markets. '2025 has positioned the JSE among the best-performing markets in the world in dollar and rand terms.' Purpose of JSE ALSI Mark Randall, Director of Information Services, notes that the index represents 125 listed companies on the JSE with a combined market capitalisation of R21 trillion, spanning a diverse range of sectors and geographies. ALSO READ: R4.5 billion in unclaimed dividends: JSE urges South Africans to check if they are owed 'While the ALSI does not include every listed company, it remains a trusted benchmark, capturing 99% of the eligible market capitalisation on the JSE Main Board.' Randall says the JSE ALSI distils the daily performance of large, mid, and small-cap stocks into a single, accessible figure visible across media platforms and financial tickers, underscoring the strength of South Africa's equity market and the JSE's role as a gateway to African investment. Past five years He explains that the years 2020 to 2025 were particularly dynamic, with the index rebounding strongly from pandemic lows, driven by commodity booms (gold, platinum), resilient corporate earnings and improved investor sentiment. 'Key sectors like mining, banking and technology fueled gains, while structural reforms and fiscal stability underpinned the JSE's rise as a gateway to African markets. This feat reflects both the index's resilience and its role as a barometer of South Africa's economic potential.' NOW READ: JSE reaches a new high
Yahoo
05-07-2025
- Business
- Yahoo
Is There An Opportunity With Information Services Corporation's (TSE:ISC) 49% Undervaluation?
The projected fair value for Information Services is CA$63.82 based on 2 Stage Free Cash Flow to Equity Current share price of CA$32.60 suggests Information Services is potentially 49% undervalued Our fair value estimate is 95% higher than Information Services' analyst price target of CA$32.70 How far off is Information Services Corporation (TSE:ISC) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (CA$, Millions) CA$60.7m CA$63.5m CA$66.0m CA$68.4m CA$70.6m CA$72.7m CA$74.8m CA$76.8m CA$78.9m CA$80.9m Growth Rate Estimate Source Analyst x4 Est @ 4.66% Est @ 4.01% Est @ 3.55% Est @ 3.23% Est @ 3.01% Est @ 2.85% Est @ 2.75% Est @ 2.67% Est @ 2.62% Present Value (CA$, Millions) Discounted @ 7.9% CA$56.2 CA$54.5 CA$52.5 CA$50.4 CA$48.2 CA$46.0 CA$43.9 CA$41.8 CA$39.8 CA$37.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CA$471m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.5%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.9%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = CA$81m× (1 + 2.5%) ÷ (7.9%– 2.5%) = CA$1.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$1.5b÷ ( 1 + 7.9%)10= CA$715m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$1.2b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of CA$32.6, the company appears quite good value at a 49% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Information Services as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.252. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Information Services Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Real Estate market. Opportunity Annual revenue is forecast to grow faster than the Canadian market. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the Canadian market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Information Services, we've put together three additional items you should consider: Risks: Take risks, for example - Information Services has 1 warning sign we think you should be aware of. Future Earnings: How does ISC's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-02-2025
- Business
- Yahoo
Information Services Corporation (TSE:ISC) has caught the attention of institutional investors who hold a sizeable 36% stake
Given the large stake in the stock by institutions, Information Services' stock price might be vulnerable to their trading decisions 53% of the business is held by the top 3 shareholders Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Every investor in Information Services Corporation (TSE:ISC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 36% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Information Services. Check out our latest analysis for Information Services Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Information Services. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Information Services' historic earnings and revenue below, but keep in mind there's always more to the story. Information Services is not owned by hedge funds. Crown Investments Corporation of Saskatchewan is currently the company's largest shareholder with 29% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 12%, of the shares outstanding, respectively. To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of Information Services Corporation. It has a market capitalization of just CA$491m, and the board has only CA$1.9m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling. With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Information Services. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Information Services you should be aware of. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
