GEN DIGITAL INC (GEN) Fundamental Analysis & Valuation

NASDAQ:GEN • US6687711084

Current stock price

20.97 USD
+0.41 (+1.99%)
At close:
21.18 USD
+0.21 (+1%)
After Hours:

This GEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. GEN Profitability Analysis

1.1 Basic Checks

  • In the past year GEN was profitable.
  • GEN had a positive operating cash flow in the past year.
  • GEN had positive earnings in each of the past 5 years.
  • In the past 5 years GEN always reported a positive cash flow from operatings.
GEN Yearly Net Income VS EBIT VS OCF VS FCFGEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.81%, GEN is in the better half of the industry, outperforming 70.50% of the companies in the same industry.
  • The Return On Equity of GEN (25.86%) is better than 90.29% of its industry peers.
  • GEN has a Return On Invested Capital of 8.39%. This is amongst the best in the industry. GEN outperforms 80.94% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GEN is below the industry average of 10.90%.
  • The 3 year average ROIC (6.59%) for GEN is below the current ROIC(8.39%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.81%
ROE 25.86%
ROIC 8.39%
ROA(3y)5.48%
ROA(5y)7.44%
ROE(3y)39.34%
ROE(5y)N/A
ROIC(3y)6.59%
ROIC(5y)10.39%
GEN Yearly ROA, ROE, ROICGEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10K 20K 30K

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.76%, GEN is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
  • GEN's Profit Margin has declined in the last couple of years.
  • GEN has a Operating Margin of 37.34%. This is amongst the best in the industry. GEN outperforms 96.76% of its industry peers.
  • GEN's Operating Margin has improved in the last couple of years.
  • GEN's Gross Margin of 78.84% is fine compared to the rest of the industry. GEN outperforms 77.70% of its industry peers.
  • GEN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 37.34%
PM (TTM) 12.76%
GM 78.84%
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%
GEN Yearly Profit, Operating, Gross MarginsGEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 100 150

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2

2. GEN Health Analysis

2.1 Basic Checks

  • GEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • GEN has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, GEN has more shares outstanding
  • Compared to 1 year ago, GEN has an improved debt to assets ratio.
GEN Yearly Shares OutstandingGEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
GEN Yearly Total Debt VS Total AssetsGEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • GEN has an Altman-Z score of 1.13. This is a bad value and indicates that GEN is not financially healthy and even has some risk of bankruptcy.
  • GEN has a Altman-Z score (1.13) which is in line with its industry peers.
  • GEN has a debt to FCF ratio of 5.54. This is a neutral value as GEN would need 5.54 years to pay back of all of its debts.
  • GEN has a Debt to FCF ratio (5.54) which is in line with its industry peers.
  • GEN has a Debt/Equity ratio of 3.50. This is a high value indicating a heavy dependency on external financing.
  • GEN has a Debt to Equity ratio of 3.50. This is amonst the worse of the industry: GEN underperforms 84.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 5.54
Altman-Z 1.13
ROIC/WACC0.85
WACC9.84%
GEN Yearly LT Debt VS Equity VS FCFGEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • GEN has a Current Ratio of 0.47. This is a bad value and indicates that GEN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • GEN's Current ratio of 0.47 is on the low side compared to the rest of the industry. GEN is outperformed by 92.81% of its industry peers.
  • A Quick Ratio of 0.47 indicates that GEN may have some problems paying its short term obligations.
  • GEN has a worse Quick ratio (0.47) than 92.45% of its industry peers.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
GEN Yearly Current Assets VS Current LiabilitesGEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. GEN Growth Analysis

3.1 Past

  • GEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.28%, which is quite good.
  • GEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.66% yearly.
  • The Revenue has grown by 21.45% in the past year. This is a very strong growth!
  • The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)15.28%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.29%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.76%

3.2 Future

  • Based on estimates for the next years, GEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
  • Based on estimates for the next years, GEN will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y15.9%
EPS Next 2Y14.56%
EPS Next 3Y13.69%
EPS Next 5Y9.56%
Revenue Next Year26.5%
Revenue Next 2Y15.52%
Revenue Next 3Y12.03%
Revenue Next 5Y6.28%

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 stable.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GEN Yearly Revenue VS EstimatesGEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
GEN Yearly EPS VS EstimatesGEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3

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9

4. GEN Valuation Analysis

4.1 Price/Earnings Ratio

  • GEN is valuated reasonably with a Price/Earnings ratio of 8.42.
  • Based on the Price/Earnings ratio, GEN is valued cheaper than 91.37% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of GEN to the average of the S&P500 Index (25.23), we can say GEN is valued rather cheaply.
  • GEN is valuated cheaply with a Price/Forward Earnings ratio of 7.20.
  • 89.93% of the companies in the same industry are more expensive than GEN, based on the Price/Forward Earnings ratio.
  • GEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.42
Fwd PE 7.2
GEN Price Earnings VS Forward Price EarningsGEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 89.57% of the companies listed in the same industry.
  • GEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GEN is cheaper than 92.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.37
EV/EBITDA 9.14
GEN Per share dataGEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10 -15

4.3 Compensation for Growth

  • GEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of GEN may justify a higher PE ratio.
  • A more expensive valuation may be justified as GEN's earnings are expected to grow with 13.69% in the coming years.
PEG (NY)0.53
PEG (5Y)0.87
EPS Next 2Y14.56%
EPS Next 3Y13.69%

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5

5. GEN Dividend Analysis

5.1 Amount

  • GEN has a Yearly Dividend Yield of 2.43%.
  • The stock price of GEN dropped by -24.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • GEN's Dividend Yield is rather good when compared to the industry average which is at 0.64. GEN pays more dividend than 95.32% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, GEN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • The dividend of GEN decreases each year by -47.18%.
  • GEN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • GEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-47.18%
Div Incr Years0
Div Non Decr Years3
GEN Yearly Dividends per shareGEN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • GEN pays out 51.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.91%
EPS Next 2Y14.56%
EPS Next 3Y13.69%
GEN Yearly Income VS Free CF VS DividendGEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B
GEN Dividend Payout.GEN Dividend Payout, showing the Payout Ratio.GEN Dividend Payout.PayoutRetained Earnings

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GEN Fundamentals: All Metrics, Ratios and Statistics

GEN DIGITAL INC

NASDAQ:GEN (3/20/2026, 8:00:01 PM)

After market: 21.18 +0.21 (+1%)

20.97

+0.41 (+1.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners90.71%
Inst Owner Change0%
Ins Owners9.44%
Ins Owner Change-0.52%
Market Cap12.70B
Revenue(TTM)4.73B
Net Income(TTM)603.00M
Analysts75
Price Target33.3 (58.8%)
Short Float %4.35%
Short Ratio3.99
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Yearly Dividend0.5
Dividend Growth(5Y)-47.18%
DP51.91%
Div Incr Years0
Div Non Decr Years3
Ex-Date02-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.5%
Min EPS beat(2)0.34%
Max EPS beat(2)0.66%
EPS beat(4)4
Avg EPS beat(4)1.87%
Min EPS beat(4)0.34%
Max EPS beat(4)5.74%
EPS beat(8)6
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)0.81%
EPS beat(16)12
Avg EPS beat(16)1.28%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)4.75%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)3
Avg Revenue beat(12)-0.05%
Revenue beat(16)4
Avg Revenue beat(16)0.19%
PT rev (1m)-0.3%
PT rev (3m)-0.9%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 8.42
Fwd PE 7.2
P/S 2.69
P/FCF 8.37
P/OCF 8.25
P/B 5.45
P/tB N/A
EV/EBITDA 9.14
EPS(TTM)2.49
EY11.87%
EPS(NY)2.91
Fwd EY13.89%
FCF(TTM)2.5
FCFY11.94%
OCF(TTM)2.54
OCFY12.12%
SpS7.8
BVpS3.85
TBVpS-17.71
PEG (NY)0.53
PEG (5Y)0.87
Graham Number14.69
Profitability
Industry RankSector Rank
ROA 3.81%
ROE 25.86%
ROCE 13.43%
ROIC 8.39%
ROICexc 8.8%
ROICexgc N/A
OM 37.34%
PM (TTM) 12.76%
GM 78.84%
FCFM 32.09%
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 Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 5.54
Debt/EBITDA 3.64
Cap/Depr 4.6%
Cap/Sales 0.47%
Interest Coverage 3.06
Cash Conversion 68.61%
Profit Quality 251.58%
Current Ratio 0.47
Quick Ratio 0.47
Altman-Z 1.13
F-Score6
WACC9.84%
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)15.28%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.29%
EPS Next Y15.9%
EPS Next 2Y14.56%
EPS Next 3Y13.69%
EPS Next 5Y9.56%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.76%
Revenue Next Year26.5%
Revenue Next 2Y15.52%
Revenue Next 3Y12.03%
Revenue Next 5Y6.28%
EBIT growth 1Y9.9%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year11.33%
EBIT Next 3Y8.75%
EBIT Next 5Y3.55%
FCF growth 1Y56.07%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y55.45%
OCF growth 3Y7.82%
OCF growth 5YN/A

GEN DIGITAL INC / GEN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of GEN DIGITAL INC (GEN) stock?

ChartMill assigns a fundamental rating of 6 / 10 to GEN.


Can you provide the valuation status for GEN DIGITAL INC?

ChartMill assigns a valuation rating of 9 / 10 to GEN DIGITAL INC (GEN). This can be considered as Undervalued.


How profitable is GEN DIGITAL INC (GEN) stock?

GEN DIGITAL INC (GEN) has a profitability rating of 7 / 10.


What is the valuation of GEN DIGITAL INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for GEN DIGITAL INC (GEN) is 8.42 and the Price/Book (PB) ratio is 5.45.


Can you provide the financial health for GEN stock?

The financial health rating of GEN DIGITAL INC (GEN) is 2 / 10.