26.96 USD
+0.42 (+1.58%)
26.96 USD
0 (0%)
Taking everything into account, GEN scores 5 out of 10 in our fundamental rating. GEN was compared to 276 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
GEN's Return On Assets of 3.55% is fine compared to the rest of the industry. GEN outperforms 67.75% of its industry peers.
GEN's Return On Equity of 23.20% is amongst the best of the industry. GEN outperforms 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's Profit Margin of 12.74% is fine compared to the rest of the industry. GEN outperforms 72.83% of its industry peers.
GEN's Profit Margin has declined in the last couple of years.
The Operating Margin of GEN (37.94%) is better than 95.29% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
GEN's Gross Margin of 79.32% is fine compared to the rest of the industry. GEN outperforms 79.35% of its industry peers.
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.
The number of shares outstanding for GEN has been increased compared to 5 years ago.
GEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that GEN is in the distress zone and has some risk of bankruptcy.
GEN has a Altman-Z score (1.29) which is comparable to the rest of the 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 52.90% 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.
GEN's Debt to Equity ratio of 3.43 is on the low side compared to the rest of the industry. GEN is outperformed by 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.78
WACC10.09%
2.3 Liquidity
A Current Ratio of 0.51 indicates that GEN may have some problems paying its short term obligations.
GEN has a worse Current ratio (0.51) than 93.48% of its industry peers.
A Quick Ratio of 0.51 indicates that GEN may have some problems paying its short term obligations.
The Quick ratio of GEN (0.51) is worse 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.
Measured over the past years, GEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.66% on average per year.
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
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.
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
The Price/Earnings ratio is 11.19, which indicates a very decent valuation of GEN.
Based on the Price/Earnings ratio, GEN is valued cheaply inside the industry as 87.68% of the companies are valued more expensively.
GEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
GEN is valuated reasonably with a Price/Forward Earnings ratio of 9.41.
Based on the Price/Forward Earnings ratio, GEN is valued cheaper than 88.77% of the companies in the same industry.
GEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 85.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GEN is valued cheaper than 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.79 | ||
| EV/EBITDA | 11.44 |
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)0.72
PEG (5Y)1.16
EPS Next 2Y13.62%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
GEN has a Yearly Dividend Yield of 1.88%.
GEN's Dividend Yield is rather good when compared to the industry average which is at 0.53. GEN pays more dividend than 95.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, GEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
GEN pays out 54.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y13.62%
EPS Next 3Y12.98%
26.96
+0.42 (+1.58%)
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 Cap16.63B
Revenue(TTM)4.47B
Net Income(TTM)570.00M
Analysts75
Price Target33.6 (24.63%)
Short Float %3.34%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)0%
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 | 11.19 | ||
| Fwd PE | 9.41 | ||
| P/S | 3.72 | ||
| P/FCF | 12.79 | ||
| P/OCF | 12.56 | ||
| P/B | 6.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.44 |
EPS(TTM)2.41
EY8.94%
EPS(NY)2.87
Fwd EY10.63%
FCF(TTM)2.11
FCFY7.82%
OCF(TTM)2.15
OCFY7.96%
SpS7.25
BVpS3.98
TBVpS-17.43
PEG (NY)0.72
PEG (5Y)1.16
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 | 1.29 |
F-Score6
WACC10.09%
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 11.19 and the Price/Book (PB) ratio is 6.77.
Can you provide the financial health for GEN stock?
The financial health rating of GEN DIGITAL INC (GEN) is 1 / 10.