GEN DIGITAL INC (1NLOK.MI) Stock Fundamental Analysis
BIT:1NLOK - Euronext Milan - US6687711084 - Common Stock - Currency: EUR
1NLOK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Software industry. While 1NLOK is still in line with the averages on profitability rating, 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
In the past year 1NLOK was profitable.
1NLOK had a positive operating cash flow in the past year.
Each year in the past 5 years 1NLOK has been profitable.
Each year in the past 5 years 1NLOK had a positive operating cash flow.
1.2 Ratios
1NLOK has a Return On Assets (4.13%) which is comparable to the rest of the industry.
The Return On Equity of 1NLOK (29.52%) is better than 88.12% of its industry peers.
The Return On Invested Capital of 1NLOK (8.72%) is better than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 29.52% | ||
| ROIC | 8.72% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 16.32%, 1NLOK is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NLOK has declined.
Looking at the Operating Margin, with a value of 41.57%, 1NLOK belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NLOK has grown nicely.
1NLOK has a better Gross Margin (80.29%) than 77.23% 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 | 41.57% | ||
| PM (TTM) | 16.32% | ||
| GM | 80.29% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
1NLOK has a worse Altman-Z score (1.20) than 63.37% of its industry peers.
The Debt to FCF ratio of 1NLOK is 3.98, which is a good value as it means it would take 1NLOK, 3.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1NLOK (3.98) is better than 60.40% of its industry peers.
A Debt/Equity ratio of 3.29 is on the high side and indicates that 1NLOK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.29, 1NLOK is doing worse than 81.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.85
WACC10.22%
2.3 Liquidity
A Current Ratio of 0.35 indicates that 1NLOK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.35, 1NLOK is doing worse than 87.13% of the companies in the same industry.
1NLOK has a Quick Ratio of 0.35. This is a bad value and indicates that 1NLOK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1NLOK (0.35) is worse than 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.27% over the past year.
Measured over the past years, 1NLOK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.66% on average per year.
The Revenue has been growing slightly by 3.23% in the past year.
The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)13.27%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%11.32%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%4.45%
3.2 Future
Based on estimates for the next years, 1NLOK will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
1NLOK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y10.3%
EPS Next 2Y9.71%
EPS Next 3Y7.36%
EPS Next 5Y8.09%
Revenue Next Year11.15%
Revenue Next 2Y7.3%
Revenue Next 3Y9.73%
Revenue Next 5Y2.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
1NLOK is valuated correctly with a Price/Earnings ratio of 12.39.
96.04% of the companies in the same industry are more expensive than 1NLOK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1NLOK to the average of the S&P500 Index (26.25), we can say 1NLOK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.24, the valuation of 1NLOK can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1NLOK is valued cheaply inside the industry as 91.09% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. 1NLOK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NLOK is valued a bit cheaper than 69.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1NLOK is valued cheaply inside the industry as 95.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1NLOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)1.28
EPS Next 2Y9.71%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
1NLOK has a Yearly Dividend Yield of 1.76%.
Compared to an average industry Dividend Yield of 1.87, 1NLOK pays a better dividend. On top of this 1NLOK pays more dividend than 91.09% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, 1NLOK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of 1NLOK is nicely growing with an annual growth rate of 8.13%!
Dividend Growth(5Y)8.13%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
49.45% of the earnings are spent on dividend by 1NLOK. This is a bit on the high side, but may be sustainable.
The dividend of 1NLOK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.45%
EPS Next 2Y9.71%
EPS Next 3Y7.36%
BIT:1NLOK (5/22/2025, 7:00:00 PM)
24.4
+1 (+4.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.59%
Inst Owner ChangeN/A
Ins Owners9.43%
Ins Owner ChangeN/A
Market Cap15.04B
Analysts75.71
Price Target26.75 (9.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.45
Dividend Growth(5Y)8.13%
DP49.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.22%
Min EPS beat(2)-0.99%
Max EPS beat(2)0.55%
EPS beat(4)2
Avg EPS beat(4)0.12%
Min EPS beat(4)-0.99%
Max EPS beat(4)1.3%
EPS beat(8)4
Avg EPS beat(8)0.27%
EPS beat(12)8
Avg EPS beat(12)1.08%
EPS beat(16)12
Avg EPS beat(16)1.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.83%
Revenue beat(12)1
Avg Revenue beat(12)-0.25%
Revenue beat(16)2
Avg Revenue beat(16)-0.32%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.24 | ||
| P/S | 4.36 | ||
| P/FCF | 7.96 | ||
| P/OCF | 7.9 | ||
| P/B | 7.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.01 |
EPS(TTM)1.97
EY8.07%
EPS(NY)2.17
Fwd EY8.9%
FCF(TTM)3.07
FCFY12.56%
OCF(TTM)3.09
OCFY12.65%
SpS5.6
BVpS3.09
TBVpS-14.9
PEG (NY)1.2
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 29.52% | ||
| ROCE | 13.95% | ||
| ROIC | 8.72% | ||
| ROICexc | 9.43% | ||
| ROICexgc | N/A | ||
| OM | 41.57% | ||
| PM (TTM) | 16.32% | ||
| GM | 80.29% | ||
| FCFM | 54.75% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 3.52% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 2.87 | ||
| Cash Conversion | 104.99% | ||
| Profit Quality | 335.59% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.2 |
F-Score6
WACC10.22%
ROIC/WACC0.85
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)13.27%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%11.32%
EPS Next Y10.3%
EPS Next 2Y9.71%
EPS Next 3Y7.36%
EPS Next 5Y8.09%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%4.45%
Revenue Next Year11.15%
Revenue Next 2Y7.3%
Revenue Next 3Y9.73%
Revenue Next 5Y2.48%
EBIT growth 1Y43.31%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year7.41%
EBIT Next 3Y3.91%
EBIT Next 5Y3.55%
FCF growth 1Y119.24%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y116.77%
OCF growth 3Y7.82%
OCF growth 5YN/A