GEN DIGITAL INC (GEN) Stock Fundamental Analysis
USA - NASDAQ:GEN - US6687711084 - Common Stock
26.185 USD
-0.16 (-0.59%)
GEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 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.
In the past year GEN had a positive cash flow from operations.
GEN had positive earnings in each of the past 5 years.
Each year in the past 5 years GEN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.65%, GEN is doing good in the industry, outperforming 68.68% of the companies in the same industry.
GEN has a better Return On Equity (25.24%) than 89.68% of its industry peers.
GEN has a Return On Invested Capital of 7.68%. This is in the better half of the industry: GEN outperforms 77.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEN is significantly below the industry average of 12.08%.
The 3 year average ROIC (6.59%) for GEN is below the current ROIC(7.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.24% | ||
| ROIC | 7.68% |
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 14.12% is fine compared to the rest of the industry. GEN outperforms 76.87% of its industry peers.
GEN's Profit Margin has declined in the last couple of years.
GEN has a better Operating Margin (39.27%) than 95.73% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
GEN's Gross Margin of 79.82% is amongst the best of the industry. GEN outperforms 81.14% of its industry peers.
GEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.27% | ||
| PM (TTM) | 14.12% | ||
| GM | 79.82% |
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.
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
The debt/assets ratio for GEN has been reduced compared to a year ago.
2.2 Solvency
GEN has an Altman-Z score of 1.20. 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 of 1.20. This is comparable to the rest of the industry: GEN outperforms 40.21% of its industry peers.
GEN has a debt to FCF ratio of 6.57. This is a slightly negative value and a sign of low solvency as GEN would need 6.57 years to pay back of all of its debts.
The Debt to FCF ratio of GEN (6.57) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.63 is on the high side and indicates that GEN has dependencies on debt financing.
The Debt to Equity ratio of GEN (3.63) is worse than 83.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.76
WACC10.17%
2.3 Liquidity
GEN has a Current Ratio of 0.50. 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 Current ratio, with a value of 0.50, GEN is doing worse than 91.81% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that GEN may have some problems paying its short term obligations.
GEN's Quick ratio of 0.50 is on the low side compared to the rest of the industry. GEN is outperformed by 91.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
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.
GEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.97%.
Measured over the past years, GEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.58% on average per year.
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 7.46% on average over the next years.
GEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.83% yearly.
EPS Next Y15.34%
EPS Next 2Y13.72%
EPS Next 3Y12.55%
EPS Next 5Y7.46%
Revenue Next Year23.82%
Revenue Next 2Y14.01%
Revenue Next 3Y10.46%
Revenue Next 5Y5.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 10.87, the valuation of GEN can be described as reasonable.
Based on the Price/Earnings ratio, GEN is valued cheaply inside the industry as 86.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.46. GEN is valued rather cheaply when compared to this.
GEN is valuated reasonably with a Price/Forward Earnings ratio of 9.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 89.32% of the companies listed in the same industry.
GEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
86.48% 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 cheaply inside the industry as 90.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 11.58 |
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.
GEN's earnings are expected to grow with 12.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)1.12
EPS Next 2Y13.72%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
GEN has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 42.47, GEN pays a better dividend. On top of this GEN pays more dividend than 94.66% of the companies listed in the same industry.
GEN's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
52.43% of the earnings are spent on dividend by GEN. This is a bit on the high side, but may be sustainable.
DP52.43%
EPS Next 2Y13.72%
EPS Next 3Y12.55%
NASDAQ:GEN (11/19/2025, 2:58:17 PM)
26.185
-0.16 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.51%
Inst Owner Change0%
Ins Owners9.31%
Ins Owner Change0.09%
Market Cap16.13B
Revenue(TTM)4.47B
Net Income(TTM)597.00M
Analysts75
Price Target34.49 (31.72%)
Short Float %2.67%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.5
Dividend Growth(5Y)-47.18%
DP52.43%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)0.75%
Max EPS beat(2)5.74%
EPS beat(4)3
Avg EPS beat(4)1.51%
Min EPS beat(4)-0.99%
Max EPS beat(4)5.74%
EPS beat(8)4
Avg EPS beat(8)0.4%
EPS beat(12)8
Avg EPS beat(12)1.1%
EPS beat(16)12
Avg EPS beat(16)1.32%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)0.3%
Max Revenue beat(2)4.75%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)4.75%
Revenue beat(8)2
Avg Revenue beat(8)-0.05%
Revenue beat(12)3
Avg Revenue beat(12)0.3%
Revenue beat(16)3
Avg Revenue beat(16)-0.02%
PT rev (1m)-2.59%
PT rev (3m)1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 9.12 | ||
| P/S | 3.82 | ||
| P/FCF | 11.95 | ||
| P/OCF | 11.81 | ||
| P/B | 6.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.58 |
EPS(TTM)2.41
EY9.2%
EPS(NY)2.87
Fwd EY10.96%
FCF(TTM)2.19
FCFY8.37%
OCF(TTM)2.22
OCFY8.47%
SpS6.86
BVpS3.84
TBVpS-17.78
PEG (NY)0.71
PEG (5Y)1.12
Graham Number14.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.24% | ||
| ROCE | 12.29% | ||
| ROIC | 7.68% | ||
| ROICexc | 8.18% | ||
| ROICexgc | N/A | ||
| OM | 39.27% | ||
| PM (TTM) | 14.12% | ||
| GM | 79.82% | ||
| FCFM | 31.91% |
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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 3.9% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 65.17% | ||
| Profit Quality | 225.96% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 1.2 |
F-Score6
WACC10.17%
ROIC/WACC0.76
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 Y15.34%
EPS Next 2Y13.72%
EPS Next 3Y12.55%
EPS Next 5Y7.46%
Revenue 1Y (TTM)15.97%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.26%
Revenue Next Year23.82%
Revenue Next 2Y14.01%
Revenue Next 3Y10.46%
Revenue Next 5Y5.83%
EBIT growth 1Y37.87%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year11.72%
EBIT Next 3Y8.99%
EBIT Next 5Y3.55%
FCF growth 1Y77.5%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y77.86%
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 10.87 and the Price/Book (PB) ratio is 6.82.
How sustainable is the dividend of GEN DIGITAL INC (GEN) stock?
The dividend rating of GEN DIGITAL INC (GEN) is 4 / 10 and the dividend payout ratio is 52.43%.