INFOSYS LTD-SP ADR (INFY)
US4567881085 - ADR
Overall INFY gets a fundamental rating of 6 out of 10. We evaluated INFY against 86 industry peers in the IT Services industry. INFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INFY is quite expensive at the moment. It does show a decent growth rate. With these ratings, INFY could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
INFY had positive earnings in the past year.
In the past year INFY had a positive cash flow from operations.
Of the past 5 years INFY 4 years were profitable.
Of the past 5 years INFY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of INFY (18.78%) is better than 96.43% of its industry peers.
Looking at the Return On Equity, with a value of 30.46%, INFY belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
INFY has a better Return On Invested Capital (25.92%) than 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INFY is significantly above the industry average of 13.16%.
The 3 year average ROIC (24.02%) for INFY is below the current ROIC(25.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 30.46% | ||
| ROIC | 25.92% |
ROA(3y)18.59%
ROA(5y)18.37%
ROE(3y)28.88%
ROE(5y)27.14%
ROIC(3y)24.02%
ROIC(5y)22.6%
1.3 Margins
INFY has a better Profit Margin (15.92%) than 94.05% of its industry peers.
INFY's Profit Margin has declined in the last couple of years.
INFY's Operating Margin of 21.09% is amongst the best of the industry. INFY outperforms 96.43% of its industry peers.
In the last couple of years the Operating Margin of INFY has declined.
INFY has a Gross Margin (30.36%) which is in line with its industry peers.
INFY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.09% | ||
| PM (TTM) | 15.92% | ||
| GM | 30.36% |
OM growth 3Y-0.43%
OM growth 5Y-2.74%
PM growth 3Y-3.51%
PM growth 5Y-6.3%
GM growth 3Y-2.95%
GM growth 5Y-3.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INFY is creating value.
There is no outstanding debt for INFY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
INFY has an Altman-Z score of 10.20. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
INFY has a better Altman-Z score (10.20) than 95.24% of its industry peers.
INFY has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.40, INFY belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
INFY has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of INFY (0.08) is better than 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 10.2 |
ROIC/WACC2.3
WACC11.26%
2.3 Liquidity
INFY has a Current Ratio of 1.99. This is a normal value and indicates that INFY is financially healthy and should not expect problems in meeting its short term obligations.
INFY's Current ratio of 1.99 is fine compared to the rest of the industry. INFY outperforms 63.10% of its industry peers.
INFY has a Quick Ratio of 1.99. This is a normal value and indicates that INFY is financially healthy and should not expect problems in meeting its short term obligations.
INFY has a better Quick ratio (1.99) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
INFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.46%.
Measured over the past years, INFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.15% on average per year.
Looking at the last year, INFY shows a quite strong growth in Revenue. The Revenue has grown by 8.18% in the last year.
INFY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.79% yearly.
EPS 1Y (TTM)4.46%
EPS 3Y13.92%
EPS 5Y10.15%
EPS growth Q2Q-6.11%
Revenue 1Y (TTM)8.18%
Revenue growth 3Y17.36%
Revenue growth 5Y15.79%
Revenue growth Q2Q1.31%
3.2 Future
Based on estimates for the next years, INFY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.90% on average per year.
Based on estimates for the next years, INFY will show a quite strong growth in Revenue. The Revenue will grow by 8.95% on average per year.
EPS Next Y4.98%
EPS Next 2Y8.26%
EPS Next 3Y9.46%
EPS Next 5Y8.9%
Revenue Next Year4.48%
Revenue Next 2Y6.01%
Revenue Next 3Y7.33%
Revenue Next 5Y8.95%
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
Based on the Price/Earnings ratio of 23.85, the valuation of INFY can be described as rather expensive.
INFY's Price/Earnings is on the same level as the industry average.
INFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 20.92 indicates a rather expensive valuation of INFY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INFY to the average of the S&P500 Index (20.88), we can say INFY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INFY is on the same level as its industry peers.
INFY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.44 | ||
| EV/EBITDA | 15.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INFY does not grow enough to justify the current Price/Earnings ratio.
INFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.79
PEG (5Y)2.35
EPS Next 2Y8.26%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, INFY pays a better dividend. On top of this INFY pays more dividend than 95.24% of the companies listed in the same industry.
INFY's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of INFY grows each year by 14.35%, which is quite nice.
INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
INFY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
INFY pays out 60.24% of its income as dividend. This is not a sustainable payout ratio.
The dividend of INFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.24%
EPS Next 2Y8.26%
EPS Next 3Y9.46%
INFOSYS LTD-SP ADR
NYSE:INFY (5/3/2024, 7:04:00 PM)
After market: 16.99 +0.06 (+0.35%)16.93
+0.06 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap70.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 20.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.79
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 30.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.09% | ||
| PM (TTM) | 15.92% | ||
| GM | 30.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.46%
EPS 3Y13.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.18%
Revenue growth 3Y17.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y