23.99 USD
+0.09 (+0.38%)
At close: Jan 30, 2026
23.99 USD
0 (0%)
After Hours: 1/30/2026, 8:00:01 PM
GEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While GEN has a great profitability rating, there are quite some 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.
- GEN had positive earnings in each of the past 5 years.
- GEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GEN has a Return On Assets of 3.55%. This is in the better half of the industry: GEN outperforms 67.63% of its industry peers.
- Looking at the Return On Equity, with a value of 23.20%, GEN belongs to the top of the industry, outperforming 89.57% 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 77.70% 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 10.73%.
- 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
- With a decent Profit Margin value of 12.74%, GEN is doing good in the industry, outperforming 73.02% of the companies in the same industry.
- GEN's Profit Margin has declined in the last couple of years.
- GEN's Operating Margin of 37.94% is amongst the best of the industry. GEN outperforms 95.32% 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 79.14% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GEN is destroying value.
- GEN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for GEN has been increased compared to 5 years ago.
- The debt/assets ratio for GEN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.21, we must say that GEN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.21, GEN perfoms like the industry average, outperforming 41.37% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of GEN (6.69) is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.43 is on the high side and indicates that GEN has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.43, GEN is not doing good in the industry: 85.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.78
WACC10.1%
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 has a worse Current ratio (0.51) than 93.53% 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 92.81% 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.
- 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.
- GEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.58% yearly.
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.
- GEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
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.
- 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
- A Price/Earnings ratio of 9.95 indicates a reasonable valuation of GEN.
- GEN's Price/Earnings ratio is rather cheap when compared to the industry. GEN is cheaper than 87.77% of the companies in the same industry.
- GEN is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 8.37, the valuation of GEN can be described as reasonable.
- Based on the Price/Forward Earnings ratio, GEN is valued cheaply inside the industry as 89.57% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of GEN to the average of the S&P500 Index (25.57), we can say GEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
- 87.05% of the companies in the same industry are more expensive than GEN, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 89.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 10.59 |
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 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)1.03
EPS Next 2Y13.62%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- GEN has a Yearly Dividend Yield of 2.09%.
- GEN's Dividend Yield is rather good when compared to the industry average which is at 0.56. GEN pays more dividend than 94.96% of the companies in the same industry.
- GEN's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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%
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 9.95 and the Price/Book (PB) ratio is 6.02.
Can you provide the financial health for GEN stock?
The financial health rating of GEN DIGITAL INC (GEN) is 2 / 10.