27.815 USD
+0.04 (+0.13%)
Taking everything into account, GEN scores 5 out of 10 in our fundamental rating. GEN was compared to 280 industry peers in the Software industry. While GEN belongs to the best of the industry regarding profitability, there are concerns on its financial health. GEN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GEN was profitable.
GEN had a positive operating cash flow in the past year.
Each year in the past 5 years GEN has been profitable.
GEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEN's Return On Assets of 3.55% is fine compared to the rest of the industry. GEN outperforms 68.21% of its industry peers.
The Return On Equity of GEN (23.20%) is better than 89.64% of its industry peers.
GEN has a Return On Invested Capital of 7.86%. This is in the better half of the industry: GEN outperforms 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GEN 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
With a decent Profit Margin value of 12.74%, GEN is doing good in the industry, outperforming 73.93% 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 37.94%. This is amongst the best in the industry. GEN outperforms 95.36% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GEN is destroying value.
Compared to 1 year ago, GEN has less shares outstanding
Compared to 5 years ago, GEN has more shares outstanding
GEN has a better debt/assets ratio than last year.
2.2 Solvency
GEN has an Altman-Z score of 1.31. This is a bad value and indicates that GEN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, GEN is doing worse than 60.36% of the companies in the same industry.
GEN has a debt to FCF ratio of 6.69. This is a slightly negative value and a sign of low solvency as GEN would need 6.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.69, GEN is in line with its industry, outperforming 53.57% of the companies in the same industry.
GEN has a Debt/Equity ratio of 3.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GEN (3.43) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.78
WACC10.08%
2.3 Liquidity
GEN has a Current 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.
GEN's Current ratio of 0.51 is on the low side compared to the rest of the industry. GEN is outperformed by 93.57% of its industry peers.
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.
GEN has a worse Quick ratio (0.51) than 93.21% of its industry peers.
| 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.
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 15.97% in the past year. This is quite good.
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.
Based on estimates for the next years, GEN will show a small growth in Revenue. The Revenue will grow by 6.25% on average per year.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GEN is valuated reasonably with a Price/Earnings ratio of 11.54.
Based on the Price/Earnings ratio, GEN is valued cheaper than 86.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of GEN to the average of the S&P500 Index (26.76), we can say GEN is valued rather cheaply.
GEN is valuated reasonably with a Price/Forward Earnings ratio of 9.71.
Based on the Price/Forward Earnings ratio, GEN is valued cheaply inside the industry as 88.93% of the companies are valued more expensively.
GEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
86.43% of the companies in the same industry are more expensive than GEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GEN is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| 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.
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 12.98% in the coming years.
PEG (NY)0.75
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 60.83, 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 2.31, 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 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
5.3 Sustainability
54.91% of the earnings are spent on dividend by GEN. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y13.62%
EPS Next 3Y12.98%
NASDAQ:GEN (12/12/2025, 12:55:01 PM)
27.815
+0.04 (+0.13%)
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 Cap17.15B
Revenue(TTM)4.47B
Net Income(TTM)570.00M
Analysts75
Price Target33.6 (20.8%)
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 | 11.54 | ||
| Fwd PE | 9.71 | ||
| P/S | 3.84 | ||
| P/FCF | 13.2 | ||
| P/OCF | 12.96 | ||
| P/B | 6.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)2.41
EY8.66%
EPS(NY)2.87
Fwd EY10.3%
FCF(TTM)2.11
FCFY7.58%
OCF(TTM)2.15
OCFY7.72%
SpS7.25
BVpS3.98
TBVpS-17.43
PEG (NY)0.75
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
WACC10.08%
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 11.54 and the Price/Book (PB) ratio is 6.98.
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%.