GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
248.75 USD
+0.35 (+0.14%)
Taking everything into account, IT scores 6 out of 10 in our fundamental rating. IT was compared to 85 industry peers in the IT Services industry. IT scores excellent on profitability, but 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.
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's Return On Assets of 15.19% is amongst the best of the industry. IT outperforms 95.29% of its industry peers.
IT has a Return On Equity of 82.56%. This is amongst the best in the industry. IT outperforms 97.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.84%, IT belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IT is below the industry average of 27.89%.
| 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
The Profit Margin of IT (19.71%) is better 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.
In the last couple of years the Operating Margin of IT has grown nicely.
With an excellent Gross Margin value of 67.96%, IT belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
In the last couple of years the Gross Margin of IT has remained more or less at the same level.
| 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.
IT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IT has been reduced compared to 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 4.04 indicates that IT is not in any danger for bankruptcy at the moment.
IT has a better Altman-Z score (4.04) than 65.88% 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.
IT has a better Debt to FCF ratio (1.63) than 74.12% of its industry peers.
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.
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 | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4.04 |
ROIC/WACC2.33
WACC8.93%
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 72.94% of its industry peers.
IT has a Quick 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.
With a Quick ratio value of 1.11, IT is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
IT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.06%, which is quite impressive.
The Earnings Per Share has been growing by 29.24% on average over the past years. This is a very strong growth
IT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
Measured over the past years, IT shows a quite strong growth in Revenue. The Revenue has been growing by 8.10% on average per year.
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
IT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.09% yearly.
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 17.20.
Compared to the rest of the industry, the Price/Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 72.94% of the companies listed in the same industry.
IT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.58, the valuation of IT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
IT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.2 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 63.53% of the companies listed in the same industry.
84.71% of the companies in the same industry are more expensive than IT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.46 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
IT has an outstanding profitability rating, which 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 |
NYSE:IT (10/31/2025, 3:20:30 PM)
248.75
+0.35 (+0.14%)
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 Cap18.84B
Revenue(TTM)6.42B
Net Income(TTM)1.27B
Analysts74.55
Price Target308.54 (24.04%)
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)-5.64%
PT rev (3m)-37.09%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-9.59%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.2 | ||
| Fwd PE | 18.58 | ||
| P/S | 2.93 | ||
| P/FCF | 12.46 | ||
| P/OCF | 11.61 | ||
| P/B | 12.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.79 |
EPS(TTM)14.46
EY5.81%
EPS(NY)13.39
Fwd EY5.38%
FCF(TTM)19.96
FCFY8.02%
OCF(TTM)21.43
OCFY8.62%
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
WACC8.93%
ROIC/WACC2.33
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 17.2 and the Price/Book (PB) ratio is 12.29.