GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
250.39 USD
-1.89 (-0.75%)
We assign a fundamental rating of 6 out of 10 to IT. IT was compared to 88 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year IT was profitable.
IT had a positive operating cash flow in the past year.
IT had positive earnings in each of the past 5 years.
IT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IT has a better Return On Assets (12.22%) than 90.91% of its industry peers.
Looking at the Return On Equity, with a value of 159.13%, IT belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.97%, IT belongs to the top of the industry, outperforming 96.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IT is significantly below the industry average of 29.60%.
The 3 year average ROIC (23.67%) for IT is below the current ROIC(25.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 159.13% | ||
| ROIC | 25.97% |
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
Looking at the Profit Margin, with a value of 13.71%, IT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
IT's Profit Margin has improved in the last couple of years.
The Operating Margin of IT (18.07%) is better than 92.05% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT's Gross Margin of 68.17% is amongst the best of the industry. IT outperforms 88.64% of its industry peers.
IT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.07% | ||
| PM (TTM) | 13.71% | ||
| GM | 68.17% |
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
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 4.23 indicates that IT is not in any danger for bankruptcy at the moment.
The Altman-Z score of IT (4.23) is better than 71.59% of its industry peers.
The Debt to FCF ratio of IT is 2.03, which is a good value as it means it would take IT, 2.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.03, IT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 4.42 is on the high side and indicates that IT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.42, IT is doing worse than 81.82% of the companies in the same industry.
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 | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.23 |
ROIC/WACC2.94
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
IT has a worse Current ratio (0.88) than 82.95% of its industry peers.
IT has a Quick Ratio of 0.88. This is a bad value and indicates that IT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IT (0.88) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.92% over the past year.
IT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.24% yearly.
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
IT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.
EPS 1Y (TTM)25.92%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%10.4%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
3.2 Future
Based on estimates for the next years, IT will show a small growth in Earnings Per Share. The EPS will grow by 3.11% on average per year.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y-6.59%
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
EPS Next 5YN/A
Revenue Next Year4%
Revenue Next 2Y3.67%
Revenue Next 3Y4.62%
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.
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
Based on the Price/Earnings ratio of 17.01, the valuation of IT can be described as rather expensive.
71.59% of the companies in the same industry are more expensive than IT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, IT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.96, the valuation of IT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than 65.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. IT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than 69.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IT is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:IT (1/2/2026, 3:44:00 PM)
250.39
-1.89 (-0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change-0.97%
Ins Owners2.01%
Ins Owner Change3.17%
Market Cap18.05B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (14.59%)
Short Float %7.6%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.06%
Min EPS beat(2)3.71%
Max EPS beat(2)10.41%
EPS beat(4)4
Avg EPS beat(4)20.84%
Min EPS beat(4)3.71%
Max EPS beat(4)62.75%
EPS beat(8)8
Avg EPS beat(8)13.16%
EPS beat(12)12
Avg EPS beat(12)18.82%
EPS beat(16)16
Avg EPS beat(16)20.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)1
Avg Revenue beat(12)-1.99%
Revenue beat(16)3
Avg Revenue beat(16)-1.39%
PT rev (1m)-0.18%
PT rev (3m)-12.25%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)7.56%
EPS NY rev (1m)4.74%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 17.96 | ||
| P/S | 2.79 | ||
| P/FCF | 14.84 | ||
| P/OCF | 13.56 | ||
| P/B | 32.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)14.72
EY5.88%
EPS(NY)13.94
Fwd EY5.57%
FCF(TTM)16.87
FCFY6.74%
OCF(TTM)18.47
OCFY7.38%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.58
Graham Number50.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 159.13% | ||
| ROCE | 31.05% | ||
| ROIC | 25.97% | ||
| ROICexc | 41.93% | ||
| ROICexgc | N/A | ||
| OM | 18.07% | ||
| PM (TTM) | 13.71% | ||
| GM | 68.17% | ||
| FCFM | 18.82% |
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-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 56.59% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.11% | ||
| Profit Quality | 137.29% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.23 |
F-Score6
WACC8.82%
ROIC/WACC2.94
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)25.92%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%10.4%
EPS Next Y-6.59%
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
EPS Next 5YN/A
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
Revenue Next Year4%
Revenue Next 2Y3.67%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y1.76%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year23.53%
EBIT Next 3Y10.35%
EBIT Next 5YN/A
FCF growth 1Y19%
FCF growth 3Y3.36%
FCF growth 5Y27.14%
OCF growth 1Y17.33%
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 for 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 9 / 10.
What is the expected EPS growth for GARTNER INC (IT) stock?
The Earnings per Share (EPS) of GARTNER INC (IT) is expected to decline by -6.59% in the next year.