26.11 USD
-0.1 (-0.38%)
26.11 USD
0 (0%)
Overall GEN gets a fundamental rating of 5 out of 10. We evaluated GEN against 276 industry peers in the Software industry. GEN scores excellent on profitability, but there are concerns on its financial health. GEN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
GEN had positive earnings in the past year.
In the past year GEN had a positive cash flow from operations.
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.
1.2 Ratios
With a decent Return On Assets value of 3.55%, GEN is doing good in the industry, outperforming 67.39% of the companies in the same industry.
GEN has a better Return On Equity (23.20%) than 89.49% of its industry peers.
GEN has a better Return On Invested Capital (7.86%) than 77.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GEN is below the industry average of 10.78%.
The 3 year average ROIC (6.59%) for GEN is below the current ROIC(7.86%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (12.74%) than 72.83% of its industry peers.
In the last couple of years the Profit Margin of GEN has declined.
GEN's Operating Margin of 37.94% is amongst the best of the industry. GEN outperforms 95.29% 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 79.35% of the companies in the same industry.
GEN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, GEN has more shares outstanding
Compared to 1 year ago, GEN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that GEN is in the distress zone and has some risk of bankruptcy.
GEN has a Altman-Z score of 1.26. This is in the lower half of the industry: GEN underperforms 60.51% of its industry peers.
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.
With a Debt to FCF ratio value of 6.69, GEN perfoms like the industry average, outperforming 52.90% of the companies in the same industry.
A Debt/Equity ratio of 3.43 is on the high side and indicates that GEN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.43, GEN is doing worse than 85.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.78
WACC10.07%
2.3 Liquidity
A Current Ratio of 0.51 indicates that GEN may have some problems paying 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 93.48% of its industry peers.
A Quick Ratio of 0.51 indicates that GEN may have some problems paying its short term obligations.
GEN has a worse Quick ratio (0.51) than 93.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.31% over the past year.
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
The Earnings Per Share is expected to grow by 8.33% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 10.83, the valuation of GEN can be described as very reasonable.
Based on the Price/Earnings ratio, GEN is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
GEN is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
GEN is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
90.22% 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 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEN is valued cheaper than 85.87% of the companies in the same industry.
89.49% 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 | 12.39 | ||
| EV/EBITDA | 11.2 |
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)0.7
PEG (5Y)1.12
EPS Next 2Y13.62%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, GEN has a reasonable but not impressive dividend return.
GEN's Dividend Yield is rather good when compared to the industry average which is at 0.54. GEN pays more dividend than 95.29% of the companies in the same industry.
GEN's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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
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%
26.11
-0.1 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.1%
Inst Owner Change0%
Ins Owners9.28%
Ins Owner Change-0.44%
Market Cap16.10B
Revenue(TTM)4.47B
Net Income(TTM)570.00M
Analysts75
Price Target33.6 (28.69%)
Short Float %3.34%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.5
Dividend Growth(5Y)-47.18%
DP54.91%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-1.42%
PT rev (3m)-5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.11 | ||
| P/S | 3.6 | ||
| P/FCF | 12.39 | ||
| P/OCF | 12.16 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)2.41
EY9.23%
EPS(NY)2.87
Fwd EY10.98%
FCF(TTM)2.11
FCFY8.07%
OCF(TTM)2.15
OCFY8.22%
SpS7.25
BVpS3.98
TBVpS-17.43
PEG (NY)0.7
PEG (5Y)1.12
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 | 1.26 |
F-Score6
WACC10.07%
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.
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 10.83 and the Price/Book (PB) ratio is 6.55.
Can you provide the financial health for GEN stock?
The financial health rating of GEN DIGITAL INC (GEN) is 1 / 10.