INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
18.67 USD
+0.1 (+0.54%)
18.45 USD
-0.22 (-1.18%)
Overall INFY gets a fundamental rating of 6 out of 10. We evaluated INFY against 88 industry peers in the IT Services industry. INFY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. INFY is not valued too expensively and it also shows 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.
Each year in the past 5 years INFY has been profitable.
INFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 17.54%, INFY belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.22%, INFY belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
INFY has a Return On Invested Capital of 22.52%. This is amongst the best in the industry. INFY outperforms 95.45% 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 29.60%.
| 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
INFY's Profit Margin of 16.60% is amongst the best of the industry. INFY outperforms 92.05% of its industry peers.
In the last couple of years the Profit Margin of INFY has declined.
INFY has a Operating Margin of 21.03%. This is amongst the best in the industry. INFY outperforms 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.
INFY has a Gross Margin (30.53%) which is comparable to the rest of the industry.
INFY's Gross Margin has declined in the last couple of years.
| 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.
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 10.40. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INFY (10.40) is better than 93.18% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.25, INFY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
INFY has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
INFY has a Debt to Equity ratio of 0.06. This is in the better half of the industry: INFY outperforms 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 10.4 |
ROIC/WACC2.63
WACC8.55%
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 has a Current ratio of 2.28. This is in the better half of the industry: INFY outperforms 67.05% 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 68.18% 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%.
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 7.91%.
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
The Earnings Per Share is expected to grow by 6.25% on average over the next years.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y10.65%
EPS Next 2Y8.93%
EPS Next 3Y8.58%
EPS Next 5Y6.25%
Revenue Next Year6.98%
Revenue Next 2Y6.82%
Revenue Next 3Y6.98%
Revenue Next 5Y5.26%
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.
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
With a Price/Earnings ratio of 24.57, INFY is valued on the expensive side.
Based on the Price/Earnings ratio, INFY is valued a bit cheaper than 60.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, INFY is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.91, the valuation of INFY can be described as rather expensive.
INFY's Price/Forward Earnings is on the same level as the industry average.
INFY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 21.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INFY is valued a bit cheaper than 67.05% of the companies in the same industry.
62.50% 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 | 20.13 | ||
| EV/EBITDA | 15.96 |
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)2.31
PEG (5Y)2.32
EPS Next 2Y8.93%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.77%.
INFY's Dividend Yield is rather good when compared to the industry average which is at 0.43. INFY pays more dividend than 96.59% of the companies in the same industry.
INFY's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of INFY is nicely growing with an annual growth rate of 17.16%!
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
63.35% of the earnings are spent on dividend by INFY. This is not a sustainable payout ratio.
INFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.35%
EPS Next 2Y8.93%
EPS Next 3Y8.58%
18.67
+0.1 (+0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.3%
Inst Owner Change1.81%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap77.39B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts80
Price TargetN/A
Short Float %4.29%
Short Ratio11.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)2.98%
PT rev (3m)0.27%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 21.91 | ||
| P/S | 4.1 | ||
| P/FCF | 20.13 | ||
| P/OCF | 18.71 | ||
| P/B | 6.72 | ||
| P/tB | 7.83 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)0.76
EY4.07%
EPS(NY)0.85
Fwd EY4.56%
FCF(TTM)0.93
FCFY4.97%
OCF(TTM)1
OCFY5.35%
SpS4.56
BVpS2.78
TBVpS2.38
PEG (NY)2.31
PEG (5Y)2.32
Graham Number6.89
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 | 10.4 |
F-Score6
WACC8.55%
ROIC/WACC2.63
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 Y10.65%
EPS Next 2Y8.93%
EPS Next 3Y8.58%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year6.98%
Revenue Next 2Y6.82%
Revenue Next 3Y6.98%
Revenue Next 5Y5.26%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year20.82%
EBIT Next 3Y11.69%
EBIT Next 5Y8.68%
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 24.57 and the Price/Book (PB) ratio is 6.72.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.