GARTNER INC (IT)
US3666511072 - Common Stock
We assign a fundamental rating of 6 out of 10 to IT. IT was compared to 86 industry peers in the IT Services industry. IT has an excellent profitability rating, but there are some minor concerns on its financial health. IT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IT had positive earnings in the past year.
In the past year IT had a positive cash flow from operations.
In the past 5 years IT has always been profitable.
In the past 5 years IT always reported a positive cash flow from operatings.
1.2 Ratios
IT's Return On Assets of 11.26% is amongst the best of the industry. IT outperforms 86.90% of its industry peers.
IT has a Return On Equity of 129.65%. This is amongst the best in the industry. IT outperforms 98.81% of its industry peers.
With an excellent Return On Invested Capital value of 21.69%, IT belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IT is significantly above the industry average of 12.84%.
The 3 year average ROIC (21.30%) for IT is below the current ROIC(21.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 129.65% | ||
| ROIC | 21.69% |
ROA(3y)11.01%
ROA(5y)7.99%
ROE(3y)232.71%
ROE(5y)149.49%
ROIC(3y)21.3%
ROIC(5y)15.92%
1.3 Margins
IT has a Profit Margin of 14.94%. This is amongst the best in the industry. IT outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of IT has grown nicely.
IT's Operating Margin of 19.16% is amongst the best of the industry. IT outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of IT has grown nicely.
With an excellent Gross Margin value of 67.78%, IT belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
IT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 14.94% | ||
| GM | 67.78% |
OM growth 3Y16.52%
OM growth 5Y15.72%
PM growth 3Y31.93%
PM growth 5Y37.13%
GM growth 3Y0.29%
GM growth 5Y1.46%
2. Health
2.1 Basic Checks
IT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
IT has less shares outstanding than it did 1 year ago.
IT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.97 indicates that IT is not in any danger for bankruptcy at the moment.
IT's Altman-Z score of 4.97 is fine compared to the rest of the industry. IT outperforms 78.57% of its industry peers.
IT has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as IT would need 2.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.34, IT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 3.60 is on the high side and indicates that IT has dependencies on debt financing.
IT's Debt to Equity ratio of 3.60 is on the low side compared to the rest of the industry. IT is outperformed by 80.95% of its industry peers.
Even though the debt/equity ratio score it not favorable for IT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.6 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.97 |
ROIC/WACC2
WACC10.84%
2.3 Liquidity
A Current Ratio of 0.91 indicates that IT may have some problems paying its short term obligations.
IT's Current ratio of 0.91 is on the low side compared to the rest of the industry. IT is outperformed by 78.57% of its industry peers.
A Quick Ratio of 0.91 indicates that IT may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, IT is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
IT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.35%.
Measured over the past years, IT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.42% on average per year.
IT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.87%.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)0.35%
EPS 3Y32.23%
EPS 5Y24.42%
EPS growth Q2Q-17.84%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y12.95%
Revenue growth 5Y8.24%
Revenue growth Q2Q5.41%
3.2 Future
IT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.77% yearly.
Based on estimates for the next years, IT will show a quite strong growth in Revenue. The Revenue will grow by 8.35% on average per year.
EPS Next Y3.86%
EPS Next 2Y8.89%
EPS Next 3Y12.77%
EPS Next 5YN/A
Revenue Next Year6.71%
Revenue Next 2Y8.24%
Revenue Next 3Y8.35%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IT is valuated quite expensively with a Price/Earnings ratio of 39.39.
IT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. IT is valued rather expensively when compared to this.
IT is valuated quite expensively with a Price/Forward Earnings ratio of 37.93.
The rest of the industry has a similar Price/Forward Earnings ratio as IT.
The average S&P500 Price/Forward Earnings ratio is at 21.63. IT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 37.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.06 | ||
| EV/EBITDA | 27.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IT's earnings are expected to grow with 12.77% in the coming years.
PEG (NY)10.21
PEG (5Y)1.61
EPS Next 2Y8.89%
EPS Next 3Y12.77%
5. Dividend
5.1 Amount
No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GARTNER INC
NYSE:IT (4/25/2024, 7:04:00 PM)
After market: 446.31 0 (0%)446.31
-4.75 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 37.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)10.21
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 129.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.16% | ||
| PM (TTM) | 14.94% | ||
| GM | 67.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.35%
EPS 3Y32.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.87%
Revenue growth 3Y12.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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