GARTNER INC (IT) Stock Fundamental Analysis
NYSE:IT - New York Stock Exchange, Inc. - US3666511072 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to IT. IT was compared to 83 industry peers in the IT Services industry. IT scores excellent on profitability, but there are some minor concerns on its financial health. IT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IT was profitable.
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
With an excellent Return On Assets value of 15.19%, IT belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
IT's Return On Equity of 82.56% is amongst the best of the industry. IT outperforms 97.59% 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 93.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IT is in line with the industry average of 22.74%.
| 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
With an excellent Profit Margin value of 19.71%, IT belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
In the last couple of years the Profit Margin of IT has grown nicely.
IT has a Operating Margin of 18.37%. This is amongst the best in the industry. IT outperforms 92.77% 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 85.54% 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 | 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
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.
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
An Altman-Z score of 3.97 indicates that IT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, IT is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
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.
The Debt to FCF ratio of IT (1.63) is better than 74.70% of its industry peers.
A Debt/Equity ratio of 1.61 is on the high side and indicates that IT has dependencies on debt financing.
IT's Debt to Equity ratio of 1.61 is on the low side compared to the rest of the industry. IT is outperformed by 75.90% 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 | 3.97 |
ROIC/WACC2.34
WACC8.89%
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.
Looking at the Current ratio, with a value of 1.11, IT is doing worse than 72.29% of the companies in the same industry.
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: 71.08% 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
The Earnings Per Share has grown by an impressive 23.06% over the past year.
Measured over the past years, IT shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.24% on average per year.
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.89% in the last year.
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
The Earnings Per Share is expected to grow by 4.55% on average over the next years.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
EPS Next Y-8.91%
EPS Next 2Y-0.32%
EPS Next 3Y4.55%
EPS Next 5YN/A
Revenue Next Year5.27%
Revenue Next 2Y5.98%
Revenue Next 3Y7.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.48, which indicates a correct valuation of IT.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than 71.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of IT to the average of the S&P500 Index (26.84), we can say IT is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.01, which indicates a rather expensive current valuation of IT.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
IT is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 17.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than 65.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IT indicates a rather cheap valuation: IT is cheaper than 87.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-0.32%
EPS Next 3Y4.55%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:IT (8/18/2025, 3:37:10 PM)
238.275
-0.41 (-0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change-1.1%
Ins Owners1.81%
Ins Owner Change-0.12%
Market Cap18.05B
Analysts76
Price Target476.16 (99.84%)
Short Float %4%
Short Ratio3.63
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)-3.31%
PT rev (3m)-5.64%
EPS NQ rev (1m)-10.06%
EPS NQ rev (3m)-10.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)-2.31%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 17.01 | ||
| P/S | 2.81 | ||
| P/FCF | 11.94 | ||
| P/OCF | 11.12 | ||
| P/B | 11.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.26 |
EPS(TTM)14.46
EY6.07%
EPS(NY)14.01
Fwd EY5.88%
FCF(TTM)19.96
FCFY8.38%
OCF(TTM)21.43
OCFY8.99%
SpS84.76
BVpS20.24
TBVpS-23.51
PEG (NY)N/A
PEG (5Y)0.56
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 3.97 |
F-Score8
WACC8.89%
ROIC/WACC2.34
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-8.91%
EPS Next 2Y-0.32%
EPS Next 3Y4.55%
EPS Next 5YN/A
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
Revenue Next Year5.27%
Revenue Next 2Y5.98%
Revenue Next 3Y7.04%
Revenue Next 5YN/A
EBIT growth 1Y2.74%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year19.67%
EBIT Next 3Y11.97%
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%