Overall IT gets a fundamental rating of 6 out of 10. We evaluated IT against 88 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 decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
IT had positive earnings in each of the past 5 years.
Each year in the past 5 years IT had a positive operating cash flow.

1.2 Ratios

IT has a Return On Assets of 12.22%. This is amongst the best in the industry. IT outperforms 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.
With an excellent Return On Invested Capital value of 25.97%, IT belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
IT had an Average Return On Invested Capital over the past 3 years of 23.67%. This is significantly below the industry average of 29.07%.
The last Return On Invested Capital (25.97%) for IT is above the 3 year average (23.67%), which is a sign of increasing profitability.

		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

With an excellent Profit Margin value of 13.71%, IT belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of IT has grown nicely.
IT has a better Operating Margin (18.07%) 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.
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	18.07%
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
The number of shares outstanding for IT has been reduced compared to 1 year ago.
Compared to 5 years ago, IT has less shares outstanding
Compared to 1 year ago, IT has an improved debt to assets ratio.

2.2 Solvency

IT has an Altman-Z score of 3.96. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
IT has a Altman-Z score of 3.96. This is in the better half of the industry: IT outperforms 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.
Looking at the Debt to FCF ratio, with a value of 2.03, IT is in the better half of the industry, outperforming 71.59% 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.
IT has a worse Debt to Equity ratio (4.42) than 81.82% 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	4.42
Debt/FCF	2.03
Altman-Z	3.96

ROIC/WACC2.87

WACC9.04%

2.3 Liquidity

A Current Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
The Current ratio of IT (0.88) is worse than 84.09% 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.
Looking at the Quick ratio, with a value of 0.88, IT is doing worse than 82.95% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.88
Quick Ratio	0.88

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 25.92% 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
IT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.24%.
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 3.20% on average per year.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.

EPS Next Y-6.5%

EPS Next 2Y-0.47%

EPS Next 3Y3.2%

EPS Next 5YN/A

Revenue Next Year4.03%

Revenue Next 2Y3.68%

Revenue Next 3Y4.63%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.24 indicates a correct valuation of IT.
Compared to the rest of the industry, the Price/Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 76.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.32, IT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.01, the valuation of IT can be described as correct.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
IT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	14.24
Fwd PE	15.01

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 73.86% of the companies listed in the same industry.
IT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IT is cheaper than 81.82% of the companies in the same industry.