INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - NYSE:INFY - US4567881085 - ADR
16.65 USD
-0.31 (-1.83%)
16.72 USD
+0.07 (+0.42%)
We assign a fundamental rating of 6 out of 10 to INFY. INFY was compared to 85 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making INFY a very profitable company, without any liquidiy or solvency issues. INFY has a correct valuation and a medium growth rate.
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.
In the past 5 years INFY has always 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 17.54%, INFY belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Return On Equity of INFY (27.22%) is better than 88.10% of its industry peers.
INFY has a better Return On Invested Capital (22.52%) than 94.05% of its industry peers.
INFY had an Average Return On Invested Capital over the past 3 years of 24.18%. This is significantly below the industry average of 29.74%.
| 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
The Profit Margin of INFY (16.60%) is better than 92.86% of its industry peers.
In the last couple of years the Profit Margin of INFY has declined.
INFY has a better Operating Margin (21.03%) than 94.05% of its industry peers.
INFY's Operating Margin has been stable in the last couple of years.
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
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.
Compared to 5 years ago, INFY has less shares outstanding
Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
INFY has an Altman-Z score of 9.53. 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 9.53, INFY belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
INFY has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
INFY has a Debt to FCF ratio of 0.25. This is amongst the best in the industry. INFY outperforms 86.90% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
INFY has a Debt to Equity ratio of 0.06. This is in the better half of the industry: INFY outperforms 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 9.53 |
ROIC/WACC2.73
WACC8.26%
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.
INFY's Current ratio of 2.28 is fine compared to the rest of the industry. INFY outperforms 67.86% of its industry peers.
A Quick Ratio of 2.27 indicates that INFY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.27, INFY is in the better half of the industry, outperforming 69.05% 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.
Looking at the last year, INFY shows a small growth in Revenue. The Revenue has grown by 7.91% in the last year.
INFY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.41% yearly.
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 6.01% yearly.
Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 5.02% on average per year.
EPS Next Y10.61%
EPS Next 2Y8.95%
EPS Next 3Y8.57%
EPS Next 5Y6.01%
Revenue Next Year6.93%
Revenue Next 2Y6.84%
Revenue Next 3Y6.73%
Revenue Next 5Y5.02%
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
With a Price/Earnings ratio of 21.62, INFY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of INFY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of INFY to the average of the S&P500 Index (25.89), we can say INFY is valued inline with the index average.
A Price/Forward Earnings ratio of 19.30 indicates a rather expensive valuation of INFY.
Based on the Price/Forward Earnings ratio, INFY is valued a bit cheaper than 60.71% of the companies in the same industry.
INFY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
INFY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INFY is cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INFY is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 13.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.05
EPS Next 2Y8.95%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, INFY has a reasonable but not impressive dividend return.
INFY's Dividend Yield is rather good when compared to the industry average which is at 2.00. INFY pays more dividend than 95.24% of the companies in the same industry.
INFY's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of INFY is nicely growing with an annual growth rate of 17.16%!
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
63.35% of the earnings are spent on dividend by INFY. 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 2Y8.95%
EPS Next 3Y8.57%
16.65
-0.31 (-1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.88%
Inst Owner Change2.12%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap69.02B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts79.18
Price Target19.19 (15.26%)
Short Float %4.94%
Short Ratio9.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.55
Dividend Growth(5Y)17.16%
DP63.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-4.23%
PT rev (3m)-2.39%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)1.67%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.3 | ||
| P/S | 3.61 | ||
| P/FCF | 17.74 | ||
| P/OCF | 16.49 | ||
| P/B | 5.92 | ||
| P/tB | 6.9 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)0.77
EY4.62%
EPS(NY)0.86
Fwd EY5.18%
FCF(TTM)0.94
FCFY5.64%
OCF(TTM)1.01
OCFY6.07%
SpS4.61
BVpS2.81
TBVpS2.41
PEG (NY)2.04
PEG (5Y)2.05
Graham Number6.98
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 | 9.53 |
F-Score6
WACC8.26%
ROIC/WACC2.73
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 Y10.61%
EPS Next 2Y8.95%
EPS Next 3Y8.57%
EPS Next 5Y6.01%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year6.93%
Revenue Next 2Y6.84%
Revenue Next 3Y6.73%
Revenue Next 5Y5.02%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year19.65%
EBIT Next 3Y11.64%
EBIT Next 5Y8.44%
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
Can you provide the ChartMill fundamental rating for INFOSYS LTD-SP ADR?
ChartMill assigns a fundamental rating of 6 / 10 to INFY.
What is the valuation status of INFOSYS LTD-SP ADR (INFY) stock?
ChartMill assigns a valuation rating of 4 / 10 to INFOSYS LTD-SP ADR (INFY). This can be considered as Fairly Valued.
Can you provide the profitability details for INFOSYS LTD-SP ADR?
INFOSYS LTD-SP ADR (INFY) has a profitability rating of 7 / 10.
What are the PE and PB ratios of INFOSYS LTD-SP ADR (INFY) stock?
The Price/Earnings (PE) ratio for INFOSYS LTD-SP ADR (INFY) is 21.62 and the Price/Book (PB) ratio is 5.92.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.