GEN DIGITAL INC (GEN) Stock Fundamental Analysis
USA - NASDAQ:GEN - US6687711084 - Common Stock
25.77 USD
+0.32 (+1.26%)
25.79 USD
+0.02 (+0.08%)
Overall GEN gets a fundamental rating of 5 out of 10. We evaluated GEN against 281 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.
GEN had a positive operating cash flow in the past year.
Each year in the past 5 years GEN has been profitable.
GEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GEN (3.65%) is better than 69.12% of its industry peers.
GEN has a Return On Equity of 25.24%. This is amongst the best in the industry. GEN outperforms 89.47% of its industry peers.
The Return On Invested Capital of GEN (7.68%) is better than 77.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GEN is significantly below the industry average of 11.85%.
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 77.19% 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 95.44% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
The Gross Margin of GEN (79.82%) is better than 81.05% 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
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.
Compared to 1 year ago, GEN has an improved debt to assets ratio.
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.
GEN's Altman-Z score of 1.18 is on the low side compared to the rest of the industry. GEN is outperformed by 62.11% of its industry peers.
The Debt to FCF ratio of GEN is 6.57, which is on the high side as it means it would take GEN, 6.57 years of fcf income to pay off 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 54.04% 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.
Looking at the Debt to Equity ratio, with a value of 3.63, GEN is doing worse than 83.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.76
WACC10.08%
2.3 Liquidity
A Current Ratio of 0.50 indicates that GEN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.50, GEN is doing worse than 90.53% 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.
The Quick ratio of GEN (0.50) is worse than 90.53% 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 a small growth in Revenue. In the last year, the Revenue has grown by 3.55%.
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.
Based on estimates for the next years, GEN will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.69 indicates a reasonable valuation of GEN.
Based on the Price/Earnings ratio, GEN is valued cheaper than 88.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, GEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.98, the valuation of GEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, GEN is valued cheaper than 90.88% of the companies in the same industry.
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
Based on the Enterprise Value to EBITDA ratio, GEN is valued cheaper than 87.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEN is valued cheaply inside the industry as 91.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 11.41 |
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.
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
GEN has a Yearly Dividend Yield of 1.96%.
GEN's Dividend Yield is rather good when compared to the industry average which is at 41.09. GEN pays more dividend than 94.74% of the companies in the same industry.
GEN's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 | 1.96% |
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%.