GEN DIGITAL INC (1NLOK.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NLOK - US6687711084 - Common Stock
23 EUR
-1.4 (-5.74%)
We assign a fundamental rating of 5 out of 10 to 1NLOK. 1NLOK was compared to 116 industry peers in the Software industry. 1NLOK has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1NLOK.
1. Profitability
1.1 Basic Checks
1NLOK had positive earnings in the past year.
1NLOK had a positive operating cash flow in the past year.
1NLOK had positive earnings in each of the past 5 years.
In the past 5 years 1NLOK always reported a positive cash flow from operatings.
1.2 Ratios
1NLOK has a Return On Assets (3.65%) which is in line with its industry peers.
1NLOK's Return On Equity of 25.24% is amongst the best of the industry. 1NLOK outperforms 81.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.68%, 1NLOK is in the better half of the industry, outperforming 63.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1NLOK is significantly below the industry average of 12.89%.
The 3 year average ROIC (6.59%) for 1NLOK is below the current ROIC(7.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.24% | ||
| ROIC | 7.68% |
ROA(3y)5.48%
ROA(5y)7.44%
ROE(3y)39.34%
ROE(5y)N/A
ROIC(3y)6.59%
ROIC(5y)10.39%
1.3 Margins
1NLOK's Profit Margin of 14.12% is fine compared to the rest of the industry. 1NLOK outperforms 64.86% of its industry peers.
1NLOK's Profit Margin has declined in the last couple of years.
The Operating Margin of 1NLOK (39.27%) is better than 93.69% of its industry peers.
1NLOK's Operating Margin has improved in the last couple of years.
1NLOK has a Gross Margin of 79.82%. This is in the better half of the industry: 1NLOK outperforms 67.57% of its industry peers.
In the last couple of years the Gross Margin of 1NLOK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.27% | ||
| PM (TTM) | 14.12% | ||
| GM | 79.82% |
OM growth 3Y3.57%
OM growth 5Y10.54%
PM growth 3Y-18.24%
PM growth 5Y-36.32%
GM growth 3Y-2.04%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1NLOK is destroying value.
1NLOK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1NLOK has more shares outstanding
1NLOK has a better debt/assets ratio than last year.
2.2 Solvency
1NLOK has an Altman-Z score of 1.20. This is a bad value and indicates that 1NLOK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1NLOK (1.20) is worse than 71.17% of its industry peers.
1NLOK has a debt to FCF ratio of 6.57. This is a slightly negative value and a sign of low solvency as 1NLOK would need 6.57 years to pay back of all of its debts.
1NLOK has a Debt to FCF ratio (6.57) which is in line with its industry peers.
1NLOK has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
1NLOK's Debt to Equity ratio of 3.63 is on the low side compared to the rest of the industry. 1NLOK is outperformed by 90.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.76
WACC10.07%
2.3 Liquidity
1NLOK has a Current Ratio of 0.50. This is a bad value and indicates that 1NLOK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.50, 1NLOK is doing worse than 89.19% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that 1NLOK may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, 1NLOK is not doing good in the industry: 89.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
1NLOK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.35%, which is quite good.
The Earnings Per Share has been growing by 9.66% on average over the past years. This is quite good.
1NLOK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.34%.
1NLOK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.58% yearly.
EPS 1Y (TTM)15.35%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%20.75%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%30.26%
3.2 Future
1NLOK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.46% yearly.
The Revenue is expected to grow by 5.83% on average over the next years.
EPS Next Y15.32%
EPS Next 2Y13.87%
EPS Next 3Y12.82%
EPS Next 5Y7.46%
Revenue Next Year23.8%
Revenue Next 2Y14.04%
Revenue Next 3Y10.67%
Revenue Next 5Y5.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.39, the valuation of 1NLOK can be described as very reasonable.
1NLOK's Price/Earnings ratio is rather cheap when compared to the industry. 1NLOK is cheaper than 90.99% of the companies in the same industry.
1NLOK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
Based on the Price/Forward Earnings ratio of 9.23, the valuation of 1NLOK can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1NLOK is valued cheaper than 91.89% of the companies in the same industry.
1NLOK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NLOK is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1NLOK is valued cheaper than 87.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1NLOK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1NLOK's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)0.74
PEG (5Y)1.18
EPS Next 2Y13.87%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
1NLOK has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
1NLOK's Dividend Yield is rather good when compared to the industry average which is at 0.66. 1NLOK pays more dividend than 91.89% of the companies in the same industry.
1NLOK's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of 1NLOK decreases each year by -47.18%.
Dividend Growth(5Y)-47.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1NLOK pays out 52.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.43%
EPS Next 2Y13.87%
EPS Next 3Y12.82%
BIT:1NLOK (10/20/2025, 7:00:00 PM)
23
-1.4 (-5.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.51%
Inst Owner ChangeN/A
Ins Owners9.31%
Ins Owner ChangeN/A
Market Cap14.17B
Revenue(TTM)4.23B
Net Income(TTM)597.00M
Analysts76.25
Price Target29.7 (29.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.44
Dividend Growth(5Y)-47.18%
DP52.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)0.75%
Max EPS beat(2)5.74%
EPS beat(4)3
Avg EPS beat(4)1.51%
Min EPS beat(4)-0.99%
Max EPS beat(4)5.74%
EPS beat(8)4
Avg EPS beat(8)0.4%
EPS beat(12)8
Avg EPS beat(12)1.1%
EPS beat(16)12
Avg EPS beat(16)1.32%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)0.3%
Max Revenue beat(2)4.75%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)4.75%
Revenue beat(8)2
Avg Revenue beat(8)-0.05%
Revenue beat(12)3
Avg Revenue beat(12)0.29%
Revenue beat(16)3
Avg Revenue beat(16)-0.02%
PT rev (1m)11.02%
PT rev (3m)11.02%
EPS NQ rev (1m)2.15%
EPS NQ rev (3m)2.15%
EPS NY rev (1m)1.36%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)18.68%
Revenue NQ rev (3m)18.68%
Revenue NY rev (1m)2.21%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.23 | ||
| P/S | 3.87 | ||
| P/FCF | 12.13 | ||
| P/OCF | 11.98 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.65 |
EPS(TTM)2.02
EY8.78%
EPS(NY)2.49
Fwd EY10.83%
FCF(TTM)1.9
FCFY8.24%
OCF(TTM)1.92
OCFY8.35%
SpS5.94
BVpS3.32
TBVpS-15.39
PEG (NY)0.74
PEG (5Y)1.18
Graham Number12.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.24% | ||
| ROCE | 12.29% | ||
| ROIC | 7.68% | ||
| ROICexc | 8.18% | ||
| ROICexgc | N/A | ||
| OM | 39.27% | ||
| PM (TTM) | 14.12% | ||
| GM | 79.82% | ||
| FCFM | 31.91% |
ROA(3y)5.48%
ROA(5y)7.44%
ROE(3y)39.34%
ROE(5y)N/A
ROIC(3y)6.59%
ROIC(5y)10.39%
ROICexc(3y)7.07%
ROICexc(5y)14.76%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.55%
ROCE(5y)16.63%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-35.61%
ROICexc growth 5Y-8.57%
OM growth 3Y3.57%
OM growth 5Y10.54%
PM growth 3Y-18.24%
PM growth 5Y-36.32%
GM growth 3Y-2.04%
GM growth 5Y-0.95%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 3.9% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 65.17% | ||
| Profit Quality | 225.96% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 1.2 |
F-Score6
WACC10.07%
ROIC/WACC0.76
Cap/Depr(3y)3.18%
Cap/Depr(5y)3.56%
Cap/Sales(3y)0.36%
Cap/Sales(5y)0.31%
Profit Quality(3y)193.32%
Profit Quality(5y)164.42%
High Growth Momentum
Growth
EPS 1Y (TTM)15.35%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%20.75%
EPS Next Y15.32%
EPS Next 2Y13.87%
EPS Next 3Y12.82%
EPS Next 5Y7.46%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%30.26%
Revenue Next Year23.8%
Revenue Next 2Y14.04%
Revenue Next 3Y10.67%
Revenue Next 5Y5.83%
EBIT growth 1Y37.87%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year11.72%
EBIT Next 3Y9.47%
EBIT Next 5Y3.55%
FCF growth 1Y77.5%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y77.86%
OCF growth 3Y7.82%
OCF growth 5YN/A
GEN DIGITAL INC / 1NLOK.MI FAQ
What is the ChartMill fundamental rating of GEN DIGITAL INC (1NLOK.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1NLOK.MI.
What is the valuation status of GEN DIGITAL INC (1NLOK.MI) stock?
ChartMill assigns a valuation rating of 8 / 10 to GEN DIGITAL INC (1NLOK.MI). This can be considered as Undervalued.
What is the profitability of 1NLOK stock?
GEN DIGITAL INC (1NLOK.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of GEN DIGITAL INC (1NLOK.MI) stock?
The Price/Earnings (PE) ratio for GEN DIGITAL INC (1NLOK.MI) is 11.39 and the Price/Book (PB) ratio is 6.92.
What is the earnings growth outlook for GEN DIGITAL INC?
The Earnings per Share (EPS) of GEN DIGITAL INC (1NLOK.MI) is expected to grow by 15.32% in the next year.