INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
18.63 USD
-0.19 (-1.01%)
18.5452 USD
-0.08 (-0.46%)
Taking everything into account, INFY scores 6 out of 10 in our fundamental rating. INFY was compared to 88 industry peers in the IT Services industry. INFY gets an excellent profitability rating and is at the same time showing great financial health properties. INFY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- INFY had positive earnings in the past year.
- INFY had a positive operating cash flow in the past year.
- INFY had positive earnings in each of the past 5 years.
- INFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- INFY has a better Return On Assets (17.54%) than 95.45% of its industry peers.
- INFY has a Return On Equity of 27.22%. This is amongst the best in the industry. INFY outperforms 88.64% of its industry peers.
- With an excellent Return On Invested Capital value of 22.52%, INFY belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- INFY had an Average Return On Invested Capital over the past 3 years of 24.18%. This is below the industry average of 28.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 27.22% | ||
| ROIC | 22.52% |
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 16.60%, INFY belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
- INFY's Profit Margin has declined in the last couple of years.
- INFY has a better Operating Margin (21.03%) than 94.32% of its industry peers.
- In the last couple of years the Operating Margin of INFY has remained more or less at the same level.
- The Gross Margin of INFY (30.53%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of INFY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.03% | ||
| PM (TTM) | 16.6% | ||
| GM | 30.53% |
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.
- The number of shares outstanding for INFY remains at a similar level compared to 1 year ago.
- INFY has less shares outstanding than it did 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 10.50. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.50, INFY belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- The Debt to FCF ratio of INFY is 0.25, which is an excellent value as it means it would take INFY, only 0.25 years of fcf income to pay off all of its debts.
- INFY has a better Debt to FCF ratio (0.25) than 88.64% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
- INFY has a better Debt to Equity ratio (0.06) than 73.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 10.5 |
ROIC/WACC2.66
WACC8.46%
2.3 Liquidity
- INFY has a Current Ratio of 2.28. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of INFY (2.28) is better than 64.77% of its industry peers.
- INFY has a Quick Ratio of 2.27. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.27, INFY is doing good in the industry, outperforming 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
- INFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.25%.
- Measured over the past years, INFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
- INFY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.91%.
- The Revenue has been growing by 12.41% on average over the past years. This is quite good.
EPS 1Y (TTM)4.25%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%13.14%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
3.2 Future
- INFY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.40% yearly.
- INFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.40% yearly.
EPS Next Y10.91%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
EPS Next 5Y6.4%
Revenue Next Year7.2%
Revenue Next 2Y6.86%
Revenue Next 3Y7.02%
Revenue Next 5Y5.4%
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 decreasing.
- 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
- INFY is valuated rather expensively with a Price/Earnings ratio of 24.84.
- The rest of the industry has a similar Price/Earnings ratio as INFY.
- When comparing the Price/Earnings ratio of INFY to the average of the S&P500 Index (27.47), we can say INFY is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.97, INFY is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INFY is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of INFY to the average of the S&P500 Index (24.26), we can say INFY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 21.97 |
4.2 Price Multiples
- 67.05% of the companies in the same industry are more expensive than INFY, based on the Enterprise Value to EBITDA ratio.
- 63.64% 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 | 20.21 | ||
| EV/EBITDA | 16.21 |
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.
- The decent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)2.35
EPS Next 2Y8.99%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.81%, INFY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.43, INFY pays a better dividend. On top of this INFY pays more dividend than 96.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, INFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 63.35% 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.
DP63.35%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
18.63
-0.19 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-13 2026-01-13/bmo
Earnings (Next)04-15 2026-04-15/amc
Inst Owners50.52%
Inst Owner Change-0.18%
Ins Owners12.99%
Ins Owner ChangeN/A
Market Cap77.23B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts79.59
Price Target21.3 (14.33%)
Short Float %4.67%
Short Ratio11.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.54
Dividend Growth(5Y)17.16%
DP63.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.36%
Max EPS beat(2)0.59%
EPS beat(4)3
Avg EPS beat(4)0.63%
Min EPS beat(4)-1.14%
Max EPS beat(4)2.71%
EPS beat(8)4
Avg EPS beat(8)2.45%
EPS beat(12)4
Avg EPS beat(12)0.22%
EPS beat(16)5
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.87%
Revenue beat(12)0
Avg Revenue beat(12)-1.98%
Revenue beat(16)2
Avg Revenue beat(16)-1.67%
PT rev (1m)7.78%
PT rev (3m)6.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.31%
EPS NY rev (1m)0.24%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 21.97 | ||
| P/S | 4.12 | ||
| P/FCF | 20.21 | ||
| P/OCF | 18.79 | ||
| P/B | 6.75 | ||
| P/tB | 7.87 | ||
| EV/EBITDA | 16.21 |
EPS(TTM)0.75
EY4.03%
EPS(NY)0.85
Fwd EY4.55%
FCF(TTM)0.92
FCFY4.95%
OCF(TTM)0.99
OCFY5.32%
SpS4.53
BVpS2.76
TBVpS2.37
PEG (NY)2.28
PEG (5Y)2.35
Graham Number6.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 27.22% | ||
| ROCE | 31.26% | ||
| ROIC | 22.52% | ||
| ROICexc | 36.96% | ||
| ROICexgc | 46.85% | ||
| OM | 21.03% | ||
| PM (TTM) | 16.6% | ||
| GM | 30.53% | ||
| FCFM | 20.36% |
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%
ROICexgc growth 3Y4.76%
ROICexgc 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-Score6
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 54.32% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.77% | ||
| Profit Quality | 122.68% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 10.5 |
F-Score6
WACC8.46%
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)4.25%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%13.14%
EPS Next Y10.91%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
EPS Next 5Y6.4%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year7.2%
Revenue Next 2Y6.86%
Revenue Next 3Y7.02%
Revenue Next 5Y5.4%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year21.12%
EBIT Next 3Y11.77%
EBIT Next 5Y8.83%
FCF growth 1Y61.87%
FCF growth 3Y15.48%
FCF growth 5Y17.02%
OCF growth 1Y54.94%
OCF growth 3Y14.33%
OCF growth 5Y13.98%
INFOSYS LTD-SP ADR / INFY FAQ
What is the ChartMill fundamental rating of INFOSYS LTD-SP ADR (INFY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to INFY.
What is the valuation status for INFY stock?
ChartMill assigns a valuation rating of 3 / 10 to INFOSYS LTD-SP ADR (INFY). This can be considered as Overvalued.
Can you provide the profitability details for INFOSYS LTD-SP ADR?
INFOSYS LTD-SP ADR (INFY) has a profitability rating of 7 / 10.
Can you provide the financial health for INFY stock?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.
What is the earnings growth outlook for INFOSYS LTD-SP ADR?
The Earnings per Share (EPS) of INFOSYS LTD-SP ADR (INFY) is expected to grow by 10.91% in the next year.