GEN DIGITAL INC (GEN) Stock Fundamental Analysis
USA - NASDAQ:GEN - US6687711084 - Common Stock
25.77 USD
+0.32 (+1.26%)
26.41 USD
+0.64 (+2.48%)
Taking everything into account, GEN scores 5 out of 10 in our fundamental rating. GEN was compared to 281 industry peers in the Software industry. While GEN has a great profitability rating, there are quite some concerns on its financial health. GEN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GEN was profitable.
GEN had a positive operating cash flow in the past year.
In the past 5 years GEN has always been profitable.
In the past 5 years GEN always reported a positive cash flow from operatings.
1.2 Ratios
GEN's Return On Assets of 3.65% is fine compared to the rest of the industry. GEN outperforms 69.04% of its industry peers.
Looking at the Return On Equity, with a value of 25.24%, GEN belongs to the top of the industry, outperforming 89.68% of the companies in the same industry.
The Return On Invested Capital of GEN (7.68%) is better than 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 11.82%.
The last Return On Invested Capital (7.68%) for GEN is above the 3 year average (6.59%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 14.12%. This is in the better half 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 95.37% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
With an excellent Gross Margin value of 79.82%, GEN belongs to the best of the industry, outperforming 81.14% 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 | 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.
GEN has less shares outstanding than it did 1 year ago.
GEN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GEN has been reduced compared to a year ago.
2.2 Solvency
GEN has an Altman-Z score of 1.18. 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 1.18, GEN is doing worse than 61.57% of the companies in the same industry.
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.
GEN's Debt to FCF ratio of 6.57 is in line compared to the rest of the industry. GEN outperforms 53.74% of its industry peers.
GEN has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
GEN has a worse Debt to Equity ratio (3.63) than 83.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.76
WACC10.08%
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.
With a Current ratio value of 0.50, GEN is not doing good in the industry: 90.75% of the companies in the same industry are doing better.
GEN has a Quick 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.
The Quick ratio of GEN (0.50) is worse than 90.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
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.
Looking at the last year, GEN shows a small growth in Revenue. The Revenue has grown by 3.55% 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)3.55%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.26%
3.2 Future
GEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.46% yearly.
The Revenue is expected to grow by 5.83% on average over the next years.
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
GEN is valuated reasonably with a Price/Earnings ratio of 10.69.
GEN's Price/Earnings ratio is rather cheap when compared to the industry. GEN is cheaper than 88.61% of the companies in the same industry.
GEN is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.98, the valuation of GEN can be described as very reasonable.
90.75% of the companies in the same industry are more expensive than GEN, based on the Price/Forward Earnings ratio.
GEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
87.54% 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 91.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 11.41 |
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.
A more expensive valuation may be justified as GEN's earnings are expected to grow with 12.55% in the coming years.
PEG (NY)0.7
PEG (5Y)1.11
EPS Next 2Y13.72%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, 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 41.10. GEN pays more dividend than 94.66% of the companies in the same industry.
GEN's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
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%
25.77
+0.32 (+1.26%)
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 Change2.02%
Market Cap15.87B
Revenue(TTM)3.94B
Net Income(TTM)597.00M
Analysts75
Price Target34.49 (33.84%)
Short Float %2.83%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)0.86%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 8.98 | ||
| P/S | 3.75 | ||
| P/FCF | 11.76 | ||
| P/OCF | 11.62 | ||
| P/B | 6.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.41 |
EPS(TTM)2.41
EY9.35%
EPS(NY)2.87
Fwd EY11.14%
FCF(TTM)2.19
FCFY8.5%
OCF(TTM)2.22
OCFY8.61%
SpS6.86
BVpS3.84
TBVpS-17.78
PEG (NY)0.7
PEG (5Y)1.11
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 | 1.18 |
F-Score6
WACC10.08%
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)3.55%
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 10.69 and the Price/Book (PB) ratio is 6.71.
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 52.43%.