Latest news with #InformationServicesCorporation
Yahoo
31-07-2025
- Business
- Yahoo
ISC Reports Financial Results for the Second Quarter of 2025
Solid Q2 2025 performance from diversified segments. Registry Operations stable, Services saw growth in Recovery Solutions, Technology Solutions improved efficiency. Financial discipline maintained, ensuring sustained performance. Capitalized terms that are used but not defined in this news release have the meaning ascribed to those terms in Management's Discussion & Analysis for the three and six months ended June 30, 2025. REGINA, Saskatchewan, July 30, 2025 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISC) ('ISC' or the 'Company') today reported on the Company's financial results for the quarter ended June 30, 2025. Commenting on ISC's results, Shawn Peters, President and CEO stated, "Our results for the second quarter of 2025 showcase the strength of our diversified business model, delivering a solid performance. Registry Operations maintained stability with rising real estate values, while Services grew through the high-margin Recovery Solutions division." Peters continued, "Despite higher share-based compensation and other unexpected costs in the quarter, our financial discipline ensures sustained performance. This balanced approach to execution positions us to continue to drive growth." Second Quarter 2025 Highlights Revenue was $67.3 million for the quarter ended June 30, 2025, consistent when compared to $67.8 million in the second quarter of 2024. Within Registry Operations, there was steady revenue from the Saskatchewan Registries division, particularly in the Land Registry, where an increase in average real estate values across the Saskatchewan market offset lower transaction volumes and was supplemented by new BASR revenue. Counterbalancing this was a decrease in Services revenue, where the continued growth in the higher-margin Recovery Solutions revenue through increased assignments and subsequent sales did not fully offset a decline in the lower-margin Regulatory Solutions division revenue. Net income was $5.9 million or $0.32 per basic share and diluted share for the quarter ended June 30, 2025, compared to $10.3 million or $0.57 per basic share and $0.56 per diluted share in the second quarter of 2024. Steady adjusted EBITDA results across our operating segments and lower net finance expense were offset by increased share-based compensation and professional and consulting services expenses. Net cash flow provided by operating activities was $22.9 million for the quarter ended June 30, 2025, a decrease of $1.3 million in the second quarter of 2024. Contributing to the decrease were the same items as described above for net income. Adjusted net income was $15.1 million or $0.81 per basic and $0.81 diluted share for the quarter ended June 30, 2025, compared to $14.1 million or $0.78 per basic share and $0.77 per diluted share in the second quarter of 2024. The increase reflects steady adjusted EBITDA results across all operating segments and lower net finance expense. Adjusted EBITDA for the quarter ended June 30, 2025, was $26.7 million, steady compared to a record $27.2 million in the second quarter of 2024. Consistent adjusted EBITDA from Registry Operations combined with lower cost of goods sold in the Services segment as a result of lower volumes in the Regulatory and Corporate Solutions divisions together with higher margin revenue in Recovery solutions were counterbalanced by slightly increased expenses. Adjusted EBITDA margin was 40 per cent which was consistent with the second quarter of 2024. Adjusted free cash flow for the quarter ended June 30, 2025, was $21.0 million, compared to $15.7 million in the second quarter of 2024, due to steady adjusted EBITDA results across our operating segments in addition to lower interest paid on long term debt. Voluntary prepayments of $15.0 million were made towards the Company's Credit Facility during the quarter. This is part of the Company's plan to deleverage towards a long-term net leverage target of 2.0x – 2.5x. See Section 6.3 'Debt' for more information on ISC's Credit Facility. On June 4, 2025, the Company announced that it had authorized, and the Toronto Stock Exchange (the "TSX") had accepted, a notice filed of its intention to make a normal course issuer bid (the "NCIB"), to purchase for cancellation up to 929,007 Class A limited voting shares of ISC (the 'Class A Shares') over the twelve-month period commencing on June 6, 2025 and ending no later than June 5, 2026, representing approximately 5 per cent of the Class A Shares issued and outstanding as at June 2, 2025. As at July 30, 2025, the Company has not yet repurchased any shares under the NCIB. Financial Position as at June 30, 2025 Cash of $21.3 million compared to $21.0 million as at December 31, 2024, an increase of $0.3 million. Total debt of $154.7 million compared to $167.6 million as at December 31, 2024. The Company is focused on continuing sustainable growth and deleveraging its balance sheet towards a long-term net leverage target of 2.0x – 2.5x. Subsequent Events On July 30, 2025, the Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before October 15, 2025, to shareholders of record as of September 30, 2025. Summary of Second Quarter 2025 Financial Results (thousands of CAD; except earnings per share, adjusted earnings per share and where noted) Three Months Ended June 30, 2025 2024 Revenue Registry Operations $ 35,417 $ 34,391 Services 29,770 30,855 Technology Solutions1 2,104 2,599 Corporate and other 21 3 Total revenue $ 67,312 $ 67,848 Total expenses $ 54,901 $ 47,631 Adjusted EBITDA2 $ 26,678 $ 27,180 Adjusted EBITDA margin2 39.6 % 40.0 % Net income $ 5,890 $ 10,319 Adjusted net income2 $ 15,134 $ 14,067 Earnings per share (basic) $ 0.32 $ 0.57 Earnings per share (diluted) $ 0.32 $ 0.56 Adjusted earnings per share (basic)2 $ 0.81 $ 0.78 Adjusted earnings per share (diluted)2 $ 0.81 $ 0.77 Adjusted free cash flow2 $ 21,004 $ 15,664 1 Corporate and other and Inter-segment eliminations are excluded. Technology Solutions revenue included in the above chart is Third Party revenue. Please see Section 3.3 ' Technology Solutions' in the MD&A for more information. 2 Adjusted net income, adjusted earnings per share, basic, adjusted earnings per share, diluted, adjusted EBITDA, adjusted EBITDA margin and adjusted free cash flow are not recognized as measures under IFRS Accounting Standards, do not have a standardized meaning prescribed and may not be comparable to similar measures reported by other companies. Refer to Section 8.8 ' Non-IFRS financial measures' in the MD&A for a discussion on why we use these measures, the calculation of them and their most directly comparable financial measure calculated in accordance with IFRS Accounting Standards. Refer to Section 2. ' Consolidated Financial Analysis' and Section 6.1 ' Cash flow' in the MD&A for a reconciliation of these measures to the most directly comparable financial measure calculated in accordance with IFRS Accounting Standards. Second Quarter 2025 Results of Operations Total revenue was $67.3 million, down 1 per cent compared to Q2 2024. Registry Operations segment revenue was $35.4 million, up 3 per cent compared to Q2 2024. Land Registry revenue was $23.2 million, down compared to $23.6 million in Q2 2024. Personal Property Registry revenue was $3.7 million, up compared to $3.5 million in Q2 2024. Corporate Registry revenue was $3.4 million, up compared to $3.3 million in Q2 2024. Property Tax Assessment Services revenue was $4.3 million, up compared to $3.9 million in Q2 2024. Other Registries revenue was $0.9 million, up compared to Q2 2024. Services segment revenue was $29.8 million, down 4 per cent compared to Q2 2024. Regulatory Solutions revenue was $22.8 million, down compared to $23.6 million in Q2 2024. Recovery Solutions revenue was $4.4 million, up compared to $3.8 million in Q2 2024. Corporate Solutions revenue was $2.6 million, down compared to $3.4 million in Q2 2024. Technology Solutions revenue was $7.9 million, up 6 per cent compared to Q2 2024. Consolidated expenses were $54.9 million compared to $47.6 million for Q2 2024. Net income was $5.9 million or $0.32 per basic share and $0.32 per diluted share, compared to $10.3 million or $0.57 per basic share and $0.56 per diluted share in Q2 2024. Sustaining capital expenditures were $2.6 million, compared to $2.7 million in Q2 2024. Outlook The following section includes forward-looking information, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, the industries in which we operate, economic activity, growth opportunities, investments and business development opportunities. Refer to 'Caution Regarding Forward-Looking Information'. Our guidance for 2025 reflects continued organic growth in line with historical trends. While not included in our guidance, our disciplined M&A strategy is intended to support our long-term growth targets as we continue to pursue new opportunities. In Registry Operations, a declining interest rate environment is likely to support ongoing activity in the Saskatchewan real estate market. As a result, there is expected to be typical annual growth in overall volumes in the Saskatchewan Land Registry of 2 to 3 per cent on an annualized basis. At the same time, there is also forecasted to be an increase in the fair market value of regular real estate transfers, along with inventory challenges in the lower-value homes category. The stability of the Ontario Property Tax Assessment division, along with a full year of BASR and annual Saskatchewan Registries CPI fee adjustments, will support the segment's steady financial performance. In Services, we expect continued growth in the Regulatory Solutions division due to the ongoing trend of increased due diligence by financial institutions. In addition, we expect to build on the strong gains made in the Recovery Solutions division in 2024. Growth in these two divisions is expected to offset any headwinds from the further opening of the Ontario Business Registry, as well as the unexpected ban on NOSIs in Ontario at the start of June 2024. In Technology Solutions, we are re-forecasting our growth in 2025 as the timing of some Third Party projects has been extended into 2026 and we now expect 2025 to be consistent with 2024. As a result, in 2025 ISC continues to expect revenue to be within a range of $257.0 million to $267.0 million and adjusted EBITDA to be in a range of $89.0 million to $97.0 million. In keeping with our historical performance, the Company also expects to see robust free cash flow in 2025, which will support the deleveraging of our balance sheet to realize a long-term net leverage target of 2.0x – 2.5x. Note to Readers The Board of Directors ('Board') of ISC is responsible for review and approval of this disclosure. The Audit Committee of the Board, which is comprised exclusively of independent directors, reviews and approves the fiscal year-end Management's Discussion and Analysis and Financial Statements and recommends both to the Board for approval. The interim financial statements and MD&A are reviewed and approved by the Audit Committee. This news release provides a general summary of ISC's results for the quarters ended June 30, 2025 and 2024. Readers are encouraged to download the Company's complete financial disclosures. Links to ISC's financial statements and related notes and MD&A for the period are available on our website in the Investor Relations section at Copies can also be obtained at by searching Information Services Corporation's profile or by contacting Information Services Corporation at All figures are in Canadian dollars unless otherwise noted. Conference Call and Webcast An investor conference call will be held on Thursday, July 31, 2025 at 11:00 a.m. ET to discuss the results. Those joining the call on a listen-only basis are encouraged to join the live audio webcast, which will be available on ISC's website at Participants who wish to ask a question on the live call may do so through the ISC website, or by registering at: Once registered, participants will receive the dial-in numbers and their unique PIN number. When dialing in, participants will input their PIN and be placed into the call. While not required, it is recommended that participants join 10 minutes before the start time. A replay of the webcast will be available approximately 24 hours after the event on ISC's website at Media are invited to attend on a listen-only basis. About ISC® Headquartered in Canada, ISC is a leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISC. Cautionary Note Regarding Forward-Looking Information This news release contains forward-looking information within the meaning of applicable Canadian securities laws including, without limitation, those contained in the 'Outlook' section hereof. Forward-looking information includes statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, expenses, operating costs, capital expenditures, and expectations regarding the industries in which we operate, growth opportunities, economic activity, investments, business development opportunities and our future financial position and results of operations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks related to changes in economic, market and business conditions, technological developments, shifts in customer demands and expectations, reliance on key customers and licences, dependence on key projects and clients, the ability to secure new business and manage fixed-price contracts, identification of viable growth opportunities, execution of the Company's growth strategy, competition, termination risks and other risks disclosed from time to time in the Company's filings, including those detailed in ISC's Annual Information Form for the year ended December 31, 2024 and ISC's unaudited Condensed Consolidated Interim Financial Statements and Notes and Management's Discussion and Analysis for the quarter ended June 30, 2025, copies of which are filed on SEDAR+ at The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances. Non-IFRS Performance Measures Included within this news release is reference to certain measures that have not been prepared in accordance with IFRS Accounting Standards, such as adjusted net income, adjusted earnings per share, basic, adjusted earnings per share, diluted, adjusted EBITDA, adjusted EBITDA margin, free cash flow and adjusted free cash flow. These measures are provided as additional information to complement IFRS measures by providing further understanding of our financial performance from management's perspective, to provide investors with supplemental measures of our operating performance and, thus, highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and assess our ability to meet future capital expenditure and working capital requirements. Accordingly, these non-IFRS measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Such measures do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies. Non-IFRS performance measure Why we use it How we calculate it Most comparable IFRS financial measure Adjusted net incomeAdjusted earnings per share, basicAdjusted earnings per share, diluted To evaluate performance and profitability while excluding non-operational and share-based volatility. We believe that certain investors and analysts will use adjusted net income and adjusted earnings per share to evaluate performance while excluding items that management believes do not contribute to our ongoing operations. Adjusted earnings per share, basic is also used as a component of determining short-term incentive compensation for employees. Adjusted net income:Net income addShare-based compensation expense, acquisitions, integration and other costs, effective interest component of interest expense, debt finance costs expensed to professional and consulting, amortization of the intangible asset associated with the right to manage and operate the Saskatchewan Registries, amortization of registry enhancements, interest on the vendor concession liability and the tax effect of these adjustments at ISC's statutory tax rateAdjusted earnings per share, basic:Adjusted net income divided by weighted average number of common shares outstandingAdjusted earnings per share, diluted:Adjusted net income divided by diluted weighted average number of common shares outstanding Net incomeEarnings per share, basicEarnings per share, diluted Adjusted EBITDAAdjusted EBITDA margin To evaluate performance and profitability of segments and subsidiaries as well as the conversion of revenue while excluding non-operational and share-based volatility. We believe that certain investors and analysts use adjusted EBITDA to measure our ability to service debt and meet other performance obligations. We believe that certain investors and analysts use adjusted EBITDA margin to evaluate the performance of our business, as well as our ability to generate cash flows from ongoing operations. Adjusted EBITDA is also used as a component of determining short-term incentive compensation for employees. Adjusted EBITDA:Net income add (remove)Depreciation and amortization, net finance expense and income tax expense, share-based compensation expense, acquisition, integration and other costs, gain/loss on disposal of assets and asset impairment charges if significantAdjusted EBITDA margin:Adjusted EBITDA divided byTotal revenue Net income Free cash flow To show cash available for debt repayment and reinvestment into the Company on a levered basis. We believe that certain investors and analysts use this measure to value a business and its underlying assets. Free cash flow with share-based compensation at target is also used as a component of determining short-term incentive compensation for employees. Net cash flow provided by operating activities deduct (add)Net change in non-cash working capital, cash additions to property, plant and equipment, cash additions to intangible assets, interest received and paid as well as interest paid on lease obligations and principal repayments on lease obligations Net cash flow provided by operating activities Adjusted free cash flow To show cash available for debt repayment and reinvestment into the Company on a levered basis from continuing operations while excluding non-operational and share-based volatility. We believe that certain investors and analysts use this measure to value a business and its underlying assets based on continuing operations while excluding short-term non-operational items. Free cash flow deduct (add)Share-based compensation expense, acquisition, integration and other costs and registry enhancement capital expenditures Net cash flow provided by operating activities The following presents a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income and a reconciliation of adjusted free cash flow to free cash flow to net cash flow provided by operating activities: Reconciliation of Adjusted Net Income to Net Income Three Months Ended June 30, Pre-tax Tax1 After-tax (thousands of CAD) 2025 2024 2025 2024 2025 2024 Adjusted net income $ 20,669 $ 19,562 $ (5,535 ) $ (5,495 ) $ 15,134 $ 14,067 Add (subtract): Share-based compensation expense (4,610 ) 1,097 1,244 (296 ) (3,366 ) 801 Acquisition, integration and other costs (3,498 ) (1,259 ) 944 340 (2,554 ) (919 ) Effective interest component of interest expense (66 ) (65 ) 18 18 (48 ) (47 ) Interest on vendor concession liability (2,174 ) (2,594 ) 587 700 (1,587 ) (1,894 ) Amortization of right to manage and operate the Saskatchewan Registries (2,313 ) (2,314 ) 624 625 (1,689 ) (1,689 ) Net income $ 8,008 $ 14,427 $ (2,118 ) $ (4,108 ) $ 5,890 $ 10,319 1 Calculated at ISC's statutory tax rate of 27.0 per cent. Reconciliation of Adjusted EBITDA to Net Income Three Months Ended June 30, (thousands of CAD) 2025 2024 Adjusted EBITDA $ 26,678 $ 27,180 Add (subtract): Share-based compensation expense (4,610 ) 1,097 Acquisition, integration and other costs (3,498 ) (1,259 ) Depreciation and amortization (6,159 ) (6,801 ) Net finance expense (4,403 ) (5,790 ) Income tax expense (2,118 ) (4,108 ) Net income $ 5,890 $ 10,319 Adjusted EBITDA margin (% of revenue) 39.6 % 40.0 % Reconciliation of Adjusted Free Cash Flow to Free Cash Flow to Net Cash Flow Provided by Operating Activities Three Months Ended June 30, (thousands of CAD) 2025 2024 Adjusted free cash flow $ 21,004 $ 15,664 Add (subtract): Share-based compensation expense (4,610 ) 1,097 Acquisition, integration and other costs (3,498 ) (1,259 ) Registry enhancement capital expenditures (2,197 ) (1,135 ) Free cash flow $ 10,699 $ 14,367 Add (subtract): Cash additions to property, plant and equipment 151 305 Cash additions to intangible assets 2,433 2,405 Interest received (137 ) (252 ) Interest paid 1,412 4,307 Interest paid on lease obligations 186 125 Principal repayment on lease obligations 536 697 Net change in non-cash working capital1 7,590 2,195 Net cash flow provided by operating activities $ 22,870 $ 24,149 1 Refer to Note 17 to the Financial Statements for reconciliation. Investor ContactJonathan HackshawSenior Director, Investor Relations & Capital MarketsToll Free:1-855-341-8363 in North America or Media ContactJodi BosnjakExternal Communications SpecialistToll Free:1-855-341-8363 in North America or 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
12-05-2025
- Business
- Yahoo
ISC Releases Investor Presentation Highlighting A Proven Model for Value Creation
ISC reaffirms its commitment to long-term shareholder value creation and disciplined capital allocation; responds to Plantro's incorrect and flawed assertions Analysis demonstrates that ISC's prudent and disciplined approach to growth and capital allocation has served all shareholders well, outperforming the S&P TSX Small Cap Index since the IPO in July 2013 ISC remains focused on performance, not provocation REGINA, Saskatchewan, May 12, 2025 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX: ISC) ('ISC' or the 'Company') today released an investor presentation titled 'A Proven Model for Value Creation', which underscores the strength, stability and strategic vision that have defined ISC's track record over more than a decade. The presentation is available here on the Company's website. ISC has evolved into a diversified business with global scale, including a high-quality registry platform and a services segment delivering consistent, accretive growth. The Company's registry operations remain anchored by a long-term exclusive contract in Saskatchewan until 2053, providing stable, CPI-linked cash flows for nearly 30 years. The Company's disciplined M&A strategy has been supported entirely through balance sheet capacity. Since its IPO, ISC has: Significantly diversified its operations, which has led to nearly tripling its revenue and Adjusted EPS Executed against a proven and accretive M&A strategy that has delivered nearly $100 million in free cash flow generated by the Services segment since 2015 Achieved revenue compound annual growth rate ('CAGR') growth of ~13.6 per cent since 2015 Provided a clear roadmap for continuing growth Delivered a total shareholder return ('TSR') of 209 per cent, outperforming the S&P/TSX SmallCap Index since the IPO in July 2013 The Company remains committed to advancing a strategy grounded in stability, disciplined capital allocation and long-term shareholder value creation. To that end, ISC has released an investor presentation, available here on the Company's website. ISC remains focused on performance, not provocation. The Company is resilient and diversified, with an experienced board and leadership team committed to executing a value-driven plan. ISC will continue to act in the best interests of all shareholders. PLANTRO'S CAMPAIGN OF MISINFORMATION AND COERCION ISC believes that offshore entity Plantro Ltd.'s ('Plantro') repeated extensions to its unsolicited and undervalued Mini-tender offer (the 'Mini-tender') are a reflection of broad shareholder disinterest in the Mini-tender. ISC continues to recommend that shareholders Reject and Do Not Tender to Plantro's undervalued Mini-Tender. The Company also fundamentally disagrees with Plantro's assessment of the Company's strategy, governance and value creation. Plantro's presentation contains factual errors, several points and data that are selective and narrowly focused on building a particular narrative, and others that demonstrate a lack of understanding of the business, including ISC's approach to M&A and its compensation and incentive programs. In light of continued mischaracterizations by Plantro, ISC urges shareholders to access accurate information through ISC's public disclosure and filings available on ISC's website at and under ISC's profile on SEDAR+ at It is unfortunate that Plantro has pursued a path that undermined engagement from the outset. ISC is and has always demonstrated genuine interest in having constructive conversations with its shareholders and other stakeholders. Notwithstanding that Plantro did not engage at all with ISC, constructively or otherwise, ahead of its Mini-tender, the Company attempted to engage in good-faith dialogue with Plantro. ISC APPRECIATES BROAD SHAREHOLDER SUPPORT AMID DISTRACTIONS The Company wants to acknowledge and thank its many shareholders for their continued support; it is not something that is taken for granted. ISC has had, and continues to have, meaningful dialogue with all stakeholders as we look forward to the future success of the Company. Sifting through the noise and the distractions and being attentive to constructive and impactful suggestions will continue to improve the business and the returns to shareholders. Finally, and further to our focus on performance, the Company does not intend to continue a public dispute with either Plantro or Matthew Proud, unless it determines that disclosure is warranted due to further misinformation by Plantro or in accordance with the requirements of applicable securities law. Instead, and as always, ISC remains committed and prepared to engage with shareholders and interested investors who wish to have constructive and good faith dialogue with us. AdvisorsISC has engaged Kingsdale Advisors as its strategic shareholder and communications advisor, Stikeman Elliott LLP as legal advisor, and RBC Capital Markets as financial advisor. About ISC®Headquartered in Canada, ISC is a leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISC. Cautionary Note Regarding Forward-Looking InformationThis news release contains forward-looking information within the meaning of applicable Canadian securities laws including, without limitation, statements related to ISC's continuing growth, its strategy, its focus on performance, its commitment to executing a value-driven plan, acting in the best interests of shareholders, its interest in constructive conversations with stakeholders and its intentions in relation to Plantro Ltd. or Matthew Proud. Investor ContactJonathan HackshawSenior Director, Investor Relations & Capital MarketsToll Free: 1-855-341-8363 in North America or Media ContactAquin GeorgeKingsdale Advisors1-416-644-4031ageorge@ in to access your portfolio
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
