27.67 USD
-0.11 (-0.4%)
27.5 USD
-0.17 (-0.61%)
Overall GEN gets a fundamental rating of 5 out of 10. We evaluated GEN against 280 industry peers in the Software industry. GEN scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GEN.
1. Profitability
1.1 Basic Checks
In the past year GEN was profitable.
In the past year GEN had a positive cash flow from operations.
In the past 5 years GEN has always been profitable.
GEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEN has a better Return On Assets (3.55%) than 68.21% of its industry peers.
With an excellent Return On Equity value of 23.20%, GEN belongs to the best of the industry, outperforming 89.64% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.86%, GEN is doing good in the industry, outperforming 77.14% of the companies in the same industry.
GEN had an Average Return On Invested Capital over the past 3 years of 6.59%. This is below the industry average of 10.98%.
The last Return On Invested Capital (7.86%) for GEN is above the 3 year average (6.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 23.2% | ||
| ROIC | 7.86% |
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
GEN's Profit Margin of 12.74% is fine compared to the rest of the industry. GEN outperforms 73.93% of its industry peers.
In the last couple of years the Profit Margin of GEN has declined.
GEN has a Operating Margin of 37.94%. This is amongst the best in the industry. GEN outperforms 95.36% of its industry peers.
GEN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.32%, GEN is in the better half of the industry, outperforming 79.64% of the companies in the same industry.
In the last couple of years the Gross Margin of GEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.94% | ||
| PM (TTM) | 12.74% | ||
| GM | 79.32% |
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
GEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GEN has been reduced compared to 1 year ago.
GEN has more shares outstanding than it did 5 years ago.
GEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that GEN is in the distress zone and has some risk of bankruptcy.
GEN's Altman-Z score of 1.31 is on the low side compared to the rest of the industry. GEN is outperformed by 60.36% of its industry peers.
The Debt to FCF ratio of GEN is 6.69, which is on the high side as it means it would take GEN, 6.69 years of fcf income to pay off all of its debts.
GEN has a Debt to FCF ratio of 6.69. This is comparable to the rest of the industry: GEN outperforms 53.57% of its industry peers.
GEN has a Debt/Equity ratio of 3.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.43, GEN is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.78
WACC10.12%
2.3 Liquidity
A Current Ratio of 0.51 indicates that GEN may have some problems paying its short term obligations.
With a Current ratio value of 0.51, GEN is not doing good in the industry: 93.57% of the companies in the same industry are doing better.
GEN has a Quick Ratio of 0.51. This is a bad value and indicates that GEN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, GEN is doing worse than 93.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
GEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.31%, which is quite good.
The Earnings Per Share has been growing by 9.66% on average over the past years. This is quite good.
Looking at the last year, GEN shows a quite strong growth in Revenue. The Revenue has grown by 15.97% in the last year.
The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)15.31%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.81%
Revenue 1Y (TTM)15.97%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.26%
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 8.33% on average per year.
The Revenue is expected to grow by 6.25% on average over the next years.
EPS Next Y15.49%
EPS Next 2Y13.62%
EPS Next 3Y12.98%
EPS Next 5Y8.33%
Revenue Next Year26.09%
Revenue Next 2Y15%
Revenue Next 3Y11.72%
Revenue Next 5Y6.25%
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
GEN is valuated reasonably with a Price/Earnings ratio of 11.48.
GEN's Price/Earnings ratio is rather cheap when compared to the industry. GEN is cheaper than 86.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. GEN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of GEN.
Based on the Price/Forward Earnings ratio, GEN is valued cheaply inside the industry as 88.93% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.78. GEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEN is valued cheaply inside the industry as 86.43% of the companies are valued more expensively.
90.00% of the companies in the same industry are more expensive than GEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.13 | ||
| EV/EBITDA | 11.68 |
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.
GEN has a very decent profitability rating, which may justify a higher PE ratio.
GEN's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)1.19
EPS Next 2Y13.62%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
GEN has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 36.93, GEN pays a better dividend. On top of this GEN pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
The dividend of GEN decreases each year by -47.18%.
GEN has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
GEN pays out 54.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y13.62%
EPS Next 3Y12.98%
27.67
-0.11 (-0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.04%
Inst Owner Change0%
Ins Owners9.29%
Ins Owner Change0.03%
Market Cap17.06B
Revenue(TTM)4.47B
Net Income(TTM)570.00M
Analysts75
Price Target33.6 (21.43%)
Short Float %3.48%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend0.5
Dividend Growth(5Y)-47.18%
DP54.91%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.2%
Min EPS beat(2)0.66%
Max EPS beat(2)5.74%
EPS beat(4)4
Avg EPS beat(4)1.92%
Min EPS beat(4)0.55%
Max EPS beat(4)5.74%
EPS beat(8)5
Avg EPS beat(8)0.63%
EPS beat(12)8
Avg EPS beat(12)1.15%
EPS beat(16)12
Avg EPS beat(16)1.3%
Revenue beat(2)2
Avg Revenue beat(2)2.91%
Min Revenue beat(2)1.08%
Max Revenue beat(2)4.75%
Revenue beat(4)3
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)4.75%
Revenue beat(8)3
Avg Revenue beat(8)0.17%
Revenue beat(12)3
Avg Revenue beat(12)-0.09%
Revenue beat(16)4
Avg Revenue beat(16)0.15%
PT rev (1m)-2.58%
PT rev (3m)-3.16%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.66 | ||
| P/S | 3.82 | ||
| P/FCF | 13.13 | ||
| P/OCF | 12.89 | ||
| P/B | 6.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)2.41
EY8.71%
EPS(NY)2.87
Fwd EY10.36%
FCF(TTM)2.11
FCFY7.62%
OCF(TTM)2.15
OCFY7.76%
SpS7.25
BVpS3.98
TBVpS-17.43
PEG (NY)0.74
PEG (5Y)1.19
Graham Number14.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 23.2% | ||
| ROCE | 12.57% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.28% | ||
| ROICexgc | N/A | ||
| OM | 37.94% | ||
| PM (TTM) | 12.74% | ||
| GM | 79.32% | ||
| FCFM | 29.06% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 5.26% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 61.5% | ||
| Profit Quality | 228.07% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.31 |
F-Score6
WACC10.12%
ROIC/WACC0.78
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)15.31%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.81%
EPS Next Y15.49%
EPS Next 2Y13.62%
EPS Next 3Y12.98%
EPS Next 5Y8.33%
Revenue 1Y (TTM)15.97%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.26%
Revenue Next Year26.09%
Revenue Next 2Y15%
Revenue Next 3Y11.72%
Revenue Next 5Y6.25%
EBIT growth 1Y8.3%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year12.58%
EBIT Next 3Y9.23%
EBIT Next 5Y3.55%
FCF growth 1Y34.02%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y34.96%
OCF growth 3Y7.82%
OCF growth 5YN/A
GEN DIGITAL INC / GEN FAQ
What is the ChartMill fundamental rating of GEN DIGITAL INC (GEN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GEN.
What is the valuation status for GEN stock?
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 are the PE and PB ratios of GEN DIGITAL INC (GEN) stock?
The Price/Earnings (PE) ratio for GEN DIGITAL INC (GEN) is 11.48 and the Price/Book (PB) ratio is 6.95.
How sustainable is the dividend of GEN DIGITAL INC (GEN) stock?
The dividend rating of GEN DIGITAL INC (GEN) is 5 / 10 and the dividend payout ratio is 54.91%.