GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
248.34 USD
-0.06 (-0.02%)
248.34 USD
0 (0%)
Overall IT gets a fundamental rating of 6 out of 10. We evaluated IT against 85 industry peers in the IT Services industry. While IT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
IT had positive earnings in the past year.
IT had a positive operating cash flow in the past year.
Each year in the past 5 years IT has been profitable.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
IT has a Return On Assets of 15.19%. This is amongst the best in the industry. IT outperforms 95.29% of its industry peers.
IT has a better Return On Equity (82.56%) than 97.65% of its industry peers.
IT's Return On Invested Capital of 20.84% is amongst the best of the industry. IT outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IT is below the industry average of 27.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROIC | 20.84% |
ROA(3y)12.34%
ROA(5y)10.27%
ROE(3y)192.17%
ROE(5y)162.96%
ROIC(3y)23.67%
ROIC(5y)19.92%
1.3 Margins
IT has a better Profit Margin (19.71%) than 95.29% of its industry peers.
IT's Profit Margin has improved in the last couple of years.
The Operating Margin of IT (18.37%) is better than 92.94% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT has a better Gross Margin (67.96%) than 87.06% of its industry peers.
IT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% |
OM growth 3Y-1.45%
OM growth 5Y15.83%
PM growth 3Y6.07%
PM growth 5Y29.49%
GM growth 3Y-0.86%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IT is creating value.
Compared to 1 year ago, IT has less shares outstanding
Compared to 5 years ago, IT has less shares outstanding
The debt/assets ratio for IT has been reduced compared to a year ago.
2.2 Solvency
IT has an Altman-Z score of 4.04. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IT (4.04) is better than 64.71% of its industry peers.
IT has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.63, IT is doing good in the industry, outperforming 74.12% of the companies in the same industry.
IT has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IT (1.61) is worse than 72.94% of its industry peers.
Although IT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4.04 |
ROIC/WACC2.32
WACC8.97%
2.3 Liquidity
IT has a Current Ratio of 1.11. This is a normal value and indicates that IT is financially healthy and should not expect problems in meeting its short term obligations.
IT's Current ratio of 1.11 is on the low side compared to the rest of the industry. IT is outperformed by 71.76% of its industry peers.
A Quick Ratio of 1.11 indicates that IT should not have too much problems paying its short term obligations.
IT has a Quick ratio of 1.11. This is in the lower half of the industry: IT underperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.06% over the past year.
The Earnings Per Share has been growing by 29.24% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.89% in the past year.
The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)23.06%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%9.63%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
3.2 Future
The Earnings Per Share is expected to grow by 2.09% on average over the next years.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y-10.87%
EPS Next 2Y-2.54%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue Next Year3.93%
Revenue Next 2Y4.06%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
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
IT is valuated rather expensively with a Price/Earnings ratio of 17.17.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than 72.94% of the companies in the same industry.
IT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
With a Price/Forward Earnings ratio of 18.54, IT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, IT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.17 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
63.53% of the companies in the same industry are more expensive than IT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IT is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-2.54%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
248.34
-0.06 (-0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.21%
Inst Owner Change0.44%
Ins Owners1.91%
Ins Owner Change1.72%
Market Cap18.81B
Revenue(TTM)6.42B
Net Income(TTM)1.27B
Analysts74.55
Price Target303.66 (22.28%)
Short Float %6.55%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.11%
Min EPS beat(2)3.71%
Max EPS beat(2)6.5%
EPS beat(4)4
Avg EPS beat(4)18.68%
Min EPS beat(4)1.75%
Max EPS beat(4)62.75%
EPS beat(8)8
Avg EPS beat(8)15.24%
EPS beat(12)12
Avg EPS beat(12)20.04%
EPS beat(16)16
Avg EPS beat(16)21.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-7.13%
PT rev (3m)-38.08%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-9.25%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.17 | ||
| Fwd PE | 18.54 | ||
| P/S | 2.93 | ||
| P/FCF | 12.44 | ||
| P/OCF | 11.59 | ||
| P/B | 12.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.79 |
EPS(TTM)14.46
EY5.82%
EPS(NY)13.39
Fwd EY5.39%
FCF(TTM)19.96
FCFY8.04%
OCF(TTM)21.43
OCFY8.63%
SpS84.76
BVpS20.24
TBVpS-23.51
PEG (NY)N/A
PEG (5Y)0.59
Graham Number81.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROCE | 24.91% | ||
| ROIC | 20.84% | ||
| ROICexc | 38.89% | ||
| ROICexgc | N/A | ||
| OM | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% | ||
| FCFM | 23.55% |
ROA(3y)12.34%
ROA(5y)10.27%
ROE(3y)192.17%
ROE(5y)162.96%
ROIC(3y)23.67%
ROIC(5y)19.92%
ROICexc(3y)34.69%
ROICexc(5y)27.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.3%
ROCE(5y)23.82%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y16.45%
ROICexc growth 5Y36.24%
OM growth 3Y-1.45%
OM growth 5Y15.83%
PM growth 3Y6.07%
PM growth 5Y29.49%
GM growth 3Y-0.86%
GM growth 5Y1.3%
F-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 54.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.35% | ||
| Profit Quality | 119.47% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.04 |
F-Score8
WACC8.97%
ROIC/WACC2.32
Cap/Depr(3y)53.53%
Cap/Depr(5y)45.41%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.73%
Profit Quality(3y)117.52%
Profit Quality(5y)163.53%
High Growth Momentum
Growth
EPS 1Y (TTM)23.06%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%9.63%
EPS Next Y-10.87%
EPS Next 2Y-2.54%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
Revenue Next Year3.93%
Revenue Next 2Y4.06%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
EBIT growth 1Y2.74%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year17.6%
EBIT Next 3Y9.23%
EBIT Next 5YN/A
FCF growth 1Y50.85%
FCF growth 3Y3.36%
FCF growth 5Y27.14%
OCF growth 1Y45.12%
OCF growth 3Y4.2%
OCF growth 5Y21.3%
GARTNER INC / IT FAQ
Can you provide the ChartMill fundamental rating for GARTNER INC?
ChartMill assigns a fundamental rating of 6 / 10 to IT.
What is the valuation status of GARTNER INC (IT) stock?
ChartMill assigns a valuation rating of 5 / 10 to GARTNER INC (IT). This can be considered as Fairly Valued.
How profitable is GARTNER INC (IT) stock?
GARTNER INC (IT) has a profitability rating of 8 / 10.
What is the valuation of GARTNER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GARTNER INC (IT) is 17.17 and the Price/Book (PB) ratio is 12.27.