GEN DIGITAL INC (SYM.DE) Stock Fundamental Analysis
FRA:SYM - Deutsche Boerse Ag - US6687711084 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SYM. SYM was compared to 102 industry peers in the Software industry. SYM has an excellent profitability rating, but there are concerns on its financial health. SYM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. SYM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SYM had positive earnings in the past year.
SYM had a positive operating cash flow in the past year.
Each year in the past 5 years SYM has been profitable.
Of the past 5 years SYM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SYM (8.46%) is better than 79.38% of its industry peers.
SYM has a better Return On Equity (61.32%) than 96.91% of its industry peers.
SYM has a Return On Invested Capital of 7.94%. This is in the better half of the industry: SYM outperforms 70.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SYM is significantly above the industry average of 10.45%.
The 3 year average ROIC (16.42%) for SYM is well above the current ROIC(7.94%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 61.32% | ||
| ROIC | 7.94% |
ROA(3y)9.74%
ROA(5y)15.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.42%
ROIC(5y)12.3%
1.3 Margins
With an excellent Profit Margin value of 40.41%, SYM belongs to the best of the industry, outperforming 95.88% of the companies in the same industry.
In the last couple of years the Profit Margin of SYM has declined.
SYM has a Operating Margin of 38.83%. This is amongst the best in the industry. SYM outperforms 94.85% of its industry peers.
SYM's Operating Margin has improved in the last couple of years.
The Gross Margin of SYM (82.35%) is better than 72.16% of its industry peers.
In the last couple of years the Gross Margin of SYM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 40.41% | ||
| GM | 82.35% |
OM growth 3Y15.9%
OM growth 5Y34.47%
PM growth 3Y-36.27%
PM growth 5Y-1.9%
GM growth 3Y-0.74%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
SYM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SYM has been increased compared to 1 year ago.
The number of shares outstanding for SYM has been increased compared to 5 years ago.
Compared to 1 year ago, SYM has a worse debt to assets ratio.
2.2 Solvency
SYM has an Altman-Z score of 0.81. This is a bad value and indicates that SYM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SYM (0.81) is worse than 75.26% of its industry peers.
SYM has a debt to FCF ratio of 13.00. This is a negative value and a sign of low solvency as SYM would need 13.00 years to pay back of all of its debts.
SYM has a Debt to FCF ratio (13.00) which is in line with its industry peers.
SYM has a Debt/Equity ratio of 4.33. This is a high value indicating a heavy dependency on external financing.
SYM has a Debt to Equity ratio of 4.33. This is amonst the worse of the industry: SYM underperforms 83.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.33 | ||
| Debt/FCF | 13 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.73
WACC10.81%
2.3 Liquidity
A Current Ratio of 0.43 indicates that SYM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.43, SYM is doing worse than 88.66% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that SYM may have some problems paying its short term obligations.
The Quick ratio of SYM (0.43) is worse than 88.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.43% over the past year.
The Earnings Per Share has been growing slightly by 1.50% on average over the past years.
SYM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.38%.
SYM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.46% yearly.
EPS 1Y (TTM)3.43%
EPS 3Y8.94%
EPS 5Y1.5%
EPS Q2Q%0%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y10.26%
Revenue growth 5Y5.46%
Sales Q2Q%32.26%
3.2 Future
The Earnings Per Share is expected to grow by 13.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.15% on average over the next years. This is quite good.
EPS Next Y13.95%
EPS Next 2Y18.35%
EPS Next 3Y16.72%
EPS Next 5Y13.75%
Revenue Next Year15.78%
Revenue Next 2Y11.06%
Revenue Next 3Y10.91%
Revenue Next 5Y9.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.02 indicates a reasonable valuation of SYM.
Based on the Price/Earnings ratio, SYM is valued cheaper than 93.81% of the companies in the same industry.
SYM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
SYM is valuated reasonably with a Price/Forward Earnings ratio of 8.82.
97.94% of the companies in the same industry are more expensive than SYM, based on the Price/Forward Earnings ratio.
SYM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYM indicates a somewhat cheap valuation: SYM is cheaper than 76.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SYM is valued cheaper than 84.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.52 | ||
| EV/EBITDA | 12.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SYM has an outstanding profitability rating, which may justify a higher PE ratio.
SYM's earnings are expected to grow with 16.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)6.67
EPS Next 2Y18.35%
EPS Next 3Y16.72%
5. Dividend
5.1 Amount
SYM has a Yearly Dividend Yield of 2.71%.
In the last 3 months the price of SYM has falen by -24.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.84, SYM pays a better dividend. On top of this SYM pays more dividend than 94.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SYM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of SYM is nicely growing with an annual growth rate of 8.45%!
Dividend Growth(5Y)8.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.28% of the earnings are spent on dividend by SYM. This is a low number and sustainable payout ratio.
SYM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.28%
EPS Next 2Y18.35%
EPS Next 3Y16.72%
FRA:SYM (6/21/2023, 7:00:00 PM)
16.74
+0.2 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.73B
Analysts72.73
Price Target22.48 (34.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.51
Dividend Growth(5Y)8.45%
DP23.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)4.3%
Max EPS beat(2)4.42%
EPS beat(4)4
Avg EPS beat(4)3.32%
Min EPS beat(4)0.12%
Max EPS beat(4)4.42%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.26%
Revenue beat(4)1
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)5.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.96%
PT rev (3m)-9.96%
EPS NQ rev (1m)-20.23%
EPS NQ rev (3m)-20.23%
EPS NY rev (1m)2.49%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)-6.66%
Revenue NQ rev (3m)-6.66%
Revenue NY rev (1m)19.55%
Revenue NY rev (3m)19.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.82 | ||
| P/S | 3.49 | ||
| P/FCF | 15.52 | ||
| P/OCF | 15.4 | ||
| P/B | 5.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)1.67
EY9.98%
EPS(NY)1.9
Fwd EY11.34%
FCF(TTM)1.08
FCFY6.44%
OCF(TTM)1.09
OCFY6.49%
SpS4.79
BVpS3.16
TBVpS-15.96
PEG (NY)0.72
PEG (5Y)6.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 61.32% | ||
| ROCE | N/A | ||
| ROIC | 7.94% | ||
| ROICexc | 8.42% | ||
| ROICexgc | N/A | ||
| OM | 38.83% | ||
| PM (TTM) | 40.41% | ||
| GM | 82.35% | ||
| FCFM | N/A |
ROA(3y)9.74%
ROA(5y)15.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.42%
ROIC(5y)12.3%
ROICexc(3y)25.3%
ROICexc(5y)19.28%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-21.61%
ROICexc growth 5Y37.09%
OM growth 3Y15.9%
OM growth 5Y34.47%
PM growth 3Y-36.27%
PM growth 5Y-1.9%
GM growth 3Y-0.74%
GM growth 5Y0.11%
F-Score3
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.33 | ||
| Debt/FCF | 13 | ||
| Debt/EBITDA | 6.01 | ||
| Cap/Depr | 1.82% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 55.67% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.81 |
F-Score3
WACC10.81%
ROIC/WACC0.73
Cap/Depr(3y)3.37%
Cap/Depr(5y)13.68%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)99.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.43%
EPS 3Y8.94%
EPS 5Y1.5%
EPS Q2Q%0%
EPS Next Y13.95%
EPS Next 2Y18.35%
EPS Next 3Y16.72%
EPS Next 5Y13.75%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y10.26%
Revenue growth 5Y5.46%
Sales Q2Q%32.26%
Revenue Next Year15.78%
Revenue Next 2Y11.06%
Revenue Next 3Y10.91%
Revenue Next 5Y9.15%
EBIT growth 1Y25.1%
EBIT growth 3Y27.79%
EBIT growth 5Y41.81%
EBIT Next Year34.7%
EBIT Next 3Y18.12%
EBIT Next 5Y15.29%
FCF growth 1Y-22.42%
FCF growth 3YN/A
FCF growth 5Y-1.45%
OCF growth 1Y-22.28%
OCF growth 3YN/A
OCF growth 5Y-4.44%