INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
NYSE:INFY - New York Stock Exchange, Inc. - US4567881085 - ADR - Currency: USD
INFY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 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 has a decent growth rate and is not valued too expensively. These ratings would make INFY suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year INFY was profitable.
INFY had a positive operating cash flow in the past year.
In the past 5 years INFY has always been profitable.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.22%, INFY belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
With an excellent Return On Equity value of 28.71%, INFY belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
INFY's Return On Invested Capital of 23.93% is amongst the best of the industry. INFY outperforms 96.34% of its industry peers.
INFY had an Average Return On Invested Capital over the past 3 years of 24.18%. This is in line with the industry average of 22.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.22% | ||
| ROE | 28.71% | ||
| ROIC | 23.93% |
ROA(3y)18.71%
ROA(5y)18.55%
ROE(3y)29.87%
ROE(5y)28.86%
ROIC(3y)24.18%
ROIC(5y)23.55%
1.3 Margins
With an excellent Profit Margin value of 16.43%, INFY belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
INFY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.11%, INFY belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
INFY's Operating Margin has been stable in the last couple of years.
INFY has a Gross Margin of 30.47%. This is comparable to the rest of the industry: INFY outperforms 42.68% of its industry peers.
INFY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.11% | ||
| PM (TTM) | 16.43% | ||
| GM | 30.47% |
OM growth 3Y-3%
OM growth 5Y-0.35%
PM growth 3Y-3.39%
PM growth 5Y-2.16%
GM growth 3Y-2.23%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INFY is creating value.
Compared to 1 year ago, INFY has about the same amount of shares outstanding.
The number of shares outstanding for INFY has been reduced compared to 5 years ago.
Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
INFY has an Altman-Z score of 9.72. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
INFY has a better Altman-Z score (9.72) than 95.12% of its industry peers.
INFY has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
INFY's Debt to FCF ratio of 0.27 is amongst the best of the industry. INFY outperforms 89.02% of its industry peers.
INFY has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, INFY is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 9.72 |
ROIC/WACC2.66
WACC9.01%
2.3 Liquidity
INFY has a Current Ratio of 2.18. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
INFY's Current ratio of 2.18 is fine compared to the rest of the industry. INFY outperforms 65.85% of its industry peers.
A Quick Ratio of 2.18 indicates that INFY has no problem at all paying its short term obligations.
INFY's Quick ratio of 2.18 is fine compared to the rest of the industry. INFY outperforms 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.16% over the past year.
INFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
The Revenue has been growing slightly by 7.03% in the past year.
The Revenue has been growing by 12.41% on average over the past years. This is quite good.
EPS 1Y (TTM)2.16%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%8.66%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%7.54%
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 9.24% on average per year.
INFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y9.78%
EPS Next 2Y9.41%
EPS Next 3Y7.15%
EPS Next 5Y9.24%
Revenue Next Year5.24%
Revenue Next 2Y6.29%
Revenue Next 3Y6.71%
Revenue Next 5Y4.78%
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 21.77, the valuation of INFY can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as INFY.
The average S&P500 Price/Earnings ratio is at 27.24. INFY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.56 indicates a rather expensive valuation of INFY.
60.98% of the companies in the same industry are more expensive than INFY, based on the Price/Forward Earnings ratio.
INFY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 64.63% of the companies listed in the same industry.
70.73% of the companies in the same industry are more expensive than INFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 14.17 |
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)2.23
PEG (5Y)2.06
EPS Next 2Y9.41%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 2.51, INFY pays a better dividend. On top of this INFY pays more dividend than 96.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, INFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of INFY grows each year by 17.16%, which is quite nice.
INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)17.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
INFY pays out 107.85% 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.
DP107.85%
EPS Next 2Y9.41%
EPS Next 3Y7.15%
NYSE:INFY (8/5/2025, 12:55:10 PM)
16.33
-0.15 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners45.59%
Inst Owner Change1.33%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap67.69B
Analysts79.15
Price Target19.7 (20.64%)
Short Float %3.72%
Short Ratio10.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend0.56
Dividend Growth(5Y)17.16%
DP107.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.65%
Min EPS beat(2)0.59%
Max EPS beat(2)2.71%
EPS beat(4)2
Avg EPS beat(4)-0.95%
Min EPS beat(4)-5.96%
Max EPS beat(4)2.71%
EPS beat(8)3
Avg EPS beat(8)2.05%
EPS beat(12)3
Avg EPS beat(12)0.17%
EPS beat(16)5
Avg EPS beat(16)-0.64%
Revenue beat(2)0
Avg Revenue beat(2)-2.75%
Min Revenue beat(2)-4.64%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-1.87%
Revenue beat(12)0
Avg Revenue beat(12)-2.09%
Revenue beat(16)2
Avg Revenue beat(16)-1.7%
PT rev (1m)1.59%
PT rev (3m)1.02%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.56 | ||
| P/S | 3.58 | ||
| P/FCF | 18.64 | ||
| P/OCF | 17.21 | ||
| P/B | 6.25 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)0.75
EY4.59%
EPS(NY)0.88
Fwd EY5.39%
FCF(TTM)0.88
FCFY5.37%
OCF(TTM)0.95
OCFY5.81%
SpS4.57
BVpS2.61
TBVpS2.22
PEG (NY)2.23
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.22% | ||
| ROE | 28.71% | ||
| ROCE | 33.23% | ||
| ROIC | 23.93% | ||
| ROICexc | 35.87% | ||
| ROICexgc | 45.02% | ||
| OM | 21.11% | ||
| PM (TTM) | 16.43% | ||
| GM | 30.47% | ||
| FCFM | 19.18% |
ROA(3y)18.71%
ROA(5y)18.55%
ROE(3y)29.87%
ROE(5y)28.86%
ROIC(3y)24.18%
ROIC(5y)23.55%
ROICexc(3y)34%
ROICexc(5y)33.29%
ROICexgc(3y)40.01%
ROICexgc(5y)38.92%
ROCE(3y)33.56%
ROCE(5y)32.7%
ROICexcg growth 3Y4.76%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y2.44%
ROICexc growth 5Y4.71%
OM growth 3Y-3%
OM growth 5Y-0.35%
PM growth 3Y-3.39%
PM growth 5Y-2.16%
GM growth 3Y-2.23%
GM growth 5Y-1.65%
F-Score7
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.27 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 55.11% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.58% | ||
| Profit Quality | 116.76% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 9.72 |
F-Score7
WACC9.01%
ROIC/WACC2.66
Cap/Depr(3y)51.53%
Cap/Depr(5y)56.25%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.69%
Profit Quality(3y)98.5%
Profit Quality(5y)101.51%
High Growth Momentum
Growth
EPS 1Y (TTM)2.16%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%8.66%
EPS Next Y9.78%
EPS Next 2Y9.41%
EPS Next 3Y7.15%
EPS Next 5Y9.24%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%7.54%
Revenue Next Year5.24%
Revenue Next 2Y6.29%
Revenue Next 3Y6.71%
Revenue Next 5Y4.78%
EBIT growth 1Y8.87%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year18.55%
EBIT Next 3Y10.91%
EBIT Next 5Y9.29%
FCF growth 1Y55.06%
FCF growth 3Y15.48%
FCF growth 5Y17.02%
OCF growth 1Y48.47%
OCF growth 3Y14.33%
OCF growth 5Y13.98%