GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
246.89 USD
-0.44 (-0.18%)
246.89 USD
0 (0%)
IT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 86 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.
In the past year IT had a positive cash flow from operations.
In the past 5 years IT has always been profitable.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IT (15.19%) is better than 95.35% of its industry peers.
Looking at the Return On Equity, with a value of 82.56%, IT belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.84%, IT belongs to the best of the industry, outperforming 94.19% 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 in line with the industry average of 21.79%.
| 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
IT's Profit Margin of 19.71% is amongst the best of the industry. IT outperforms 95.35% of its industry peers.
IT's Profit Margin has improved in the last couple of years.
IT has a Operating Margin of 18.37%. This is amongst the best in the industry. IT outperforms 93.02% 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 84.88% 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
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.
IT has less shares outstanding than it did 5 years ago.
IT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.03 indicates that IT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.03, IT is doing good in the industry, outperforming 67.44% 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.
IT has a better Debt to FCF ratio (1.63) than 75.58% 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.
With a Debt to Equity ratio value of 1.61, IT is not doing good in the industry: 73.26% of the companies in the same industry are doing better.
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 | 4.03 |
ROIC/WACC2.33
WACC8.96%
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 73.26% 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.
IT's Quick ratio of 1.11 is on the low side compared to the rest of the industry. IT is outperformed by 70.93% of its industry peers.
| 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.
IT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.24% yearly.
The Revenue has been growing slightly by 5.89% in the past 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
Based on estimates for the next years, IT will show a small growth in Earnings Per Share. The EPS will grow by 2.73% on average per year.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y-10.94%
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y4.05%
Revenue Next 3Y5.33%
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.
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
IT is valuated rather expensively with a Price/Earnings ratio of 17.07.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than 70.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, IT is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.40 indicates a rather expensive valuation of IT.
65.12% of the companies in the same industry are more expensive than IT, based on the Price/Forward Earnings ratio.
IT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
65.12% of the companies in the same industry are more expensive than IT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IT is valued cheaply inside the industry as 87.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
246.89
-0.44 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change-1.12%
Ins Owners1.81%
Ins Owner Change1.68%
Market Cap18.70B
Analysts76
Price Target326.97 (32.44%)
Short Float %4.06%
Short Ratio2.26
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)-31.33%
PT rev (3m)-33.95%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 18.4 | ||
| P/S | 2.91 | ||
| P/FCF | 12.37 | ||
| P/OCF | 11.52 | ||
| P/B | 12.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)14.46
EY5.86%
EPS(NY)13.42
Fwd EY5.44%
FCF(TTM)19.96
FCFY8.08%
OCF(TTM)21.43
OCFY8.68%
SpS84.76
BVpS20.24
TBVpS-23.51
PEG (NY)N/A
PEG (5Y)0.58
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 | 4.03 |
F-Score8
WACC8.96%
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-10.94%
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
EPS Next 5YN/A
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
Revenue Next Year3.9%
Revenue Next 2Y4.05%
Revenue Next 3Y5.33%
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%