INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
NYSE:INFY - US4567881085 - ADR
17 USD
-0.36 (-2.07%)
16.95 USD
-0.05 (-0.29%)
Taking everything into account, INFY scores 6 out of 10 in our fundamental rating. INFY was compared to 83 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. These ratings would make INFY suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year INFY was profitable.
In the past year INFY had a positive cash flow from operations.
Each year in the past 5 years INFY has been profitable.
Each year in the past 5 years INFY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.22%, INFY belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
INFY's Return On Equity of 28.71% is amongst the best of the industry. INFY outperforms 92.77% of its industry peers.
INFY's Return On Invested Capital of 23.93% is amongst the best of the industry. INFY outperforms 96.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INFY is above the industry average of 22.12%.
| 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
Looking at the Profit Margin, with a value of 16.43%, INFY belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
In the last couple of years the Profit Margin of INFY has declined.
Looking at the Operating Margin, with a value of 21.11%, INFY belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
In the last couple of years the Operating Margin of INFY has remained more or less at the same level.
With a Gross Margin value of 30.47%, INFY is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
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
INFY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
INFY has about the same amout of shares outstanding than it did 1 year ago.
INFY has less shares outstanding than it did 5 years ago.
INFY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.08 indicates that INFY is not in any danger for bankruptcy at the moment.
INFY has a better Altman-Z score (10.08) than 93.98% of its industry peers.
The Debt to FCF ratio of INFY is 0.27, which is an excellent value as it means it would take INFY, only 0.27 years of fcf income to pay off all of its debts.
INFY has a better Debt to FCF ratio (0.27) than 90.36% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, INFY is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 10.08 |
ROIC/WACC2.76
WACC8.68%
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 has a better Current ratio (2.18) than 65.06% of its industry peers.
A Quick Ratio of 2.18 indicates that INFY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.18, INFY is doing good in the industry, outperforming 65.06% of the companies in the same industry.
| 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.
INFY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.03%.
Measured over the past years, INFY shows a quite strong growth in Revenue. The Revenue has been growing by 12.41% on average per year.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.78% on average over the next years.
EPS Next Y8.64%
EPS Next 2Y8.57%
EPS Next 3Y8.36%
EPS Next 5Y9.19%
Revenue Next Year5.25%
Revenue Next 2Y6.25%
Revenue Next 3Y6.67%
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.
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
The Price/Earnings ratio is 22.67, which indicates a rather expensive current valuation of INFY.
INFY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of INFY to the average of the S&P500 Index (27.17), we can say INFY is valued inline with the index average.
INFY is valuated rather expensively with a Price/Forward Earnings ratio of 19.64.
The rest of the industry has a similar Price/Forward Earnings ratio as INFY.
INFY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 19.64 |
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.
Based on the Price/Free Cash Flow ratio, INFY is valued a bit cheaper than 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 14.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
INFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)2.14
EPS Next 2Y8.57%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.87%.
INFY's Dividend Yield is rather good when compared to the industry average which is at 2.44. INFY pays more dividend than 96.39% of the companies in the same industry.
INFY's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
On average, the dividend of INFY grows each year by 17.16%, which is quite nice.
INFY has paid a dividend for at least 10 years, which is 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.
INFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP107.85%
EPS Next 2Y8.57%
EPS Next 3Y8.36%
17
-0.36 (-2.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners45.59%
Inst Owner Change1.89%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap70.47B
Analysts78.33
Price Target20.04 (17.88%)
Short Float %4.69%
Short Ratio11.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)1.71%
PT rev (3m)-0.73%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 19.64 | ||
| P/S | 3.73 | ||
| P/FCF | 19.43 | ||
| P/OCF | 17.93 | ||
| P/B | 6.51 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 14.99 |
EPS(TTM)0.75
EY4.41%
EPS(NY)0.87
Fwd EY5.09%
FCF(TTM)0.88
FCFY5.15%
OCF(TTM)0.95
OCFY5.58%
SpS4.56
BVpS2.61
TBVpS2.22
PEG (NY)2.62
PEG (5Y)2.14
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 | 10.08 |
F-Score7
WACC8.68%
ROIC/WACC2.76
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 Y8.64%
EPS Next 2Y8.57%
EPS Next 3Y8.36%
EPS Next 5Y9.19%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%7.54%
Revenue Next Year5.25%
Revenue Next 2Y6.25%
Revenue Next 3Y6.67%
Revenue Next 5Y4.78%
EBIT growth 1Y8.87%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year18.55%
EBIT Next 3Y11.48%
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%