GEN DIGITAL INC (GEN) Stock Fundamental Analysis
NASDAQ:GEN - Nasdaq - US6687711084 - Common Stock
Overall GEN gets a fundamental rating of 6 out of 10. We evaluated GEN against 285 industry peers in the Software industry. GEN scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GEN.
1. Profitability
1.1 Basic Checks
In the past year GEN was profitable.
GEN had a positive operating cash flow in the past year.
GEN had positive earnings in each of the past 5 years.
GEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.01%, GEN is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
GEN's Return On Equity of 29.55% is amongst the best of the industry. GEN outperforms 90.68% of its industry peers.
GEN has a Return On Invested Capital of 10.71%. This is amongst the best in the industry. GEN outperforms 87.46% of its industry peers.
GEN had an Average Return On Invested Capital over the past 3 years of 12.02%. This is in line with the industry average of 12.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 29.55% | ||
| ROIC | 10.71% |
ROA(3y)8.13%
ROA(5y)16.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.02%
ROIC(5y)13.04%
1.3 Margins
GEN's Profit Margin of 16.07% is amongst the best of the industry. GEN outperforms 82.44% of its industry peers.
In the last couple of years the Profit Margin of GEN has grown nicely.
The Operating Margin of GEN (40.94%) is better than 97.49% of its industry peers.
GEN's Operating Margin has improved in the last couple of years.
GEN has a Gross Margin of 80.40%. This is amongst the best in the industry. GEN outperforms 80.65% of its industry peers.
In the last couple of years the Gross Margin of GEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.94% | ||
| PM (TTM) | 16.07% | ||
| GM | 80.4% |
OM growth 3Y-9%
OM growth 5Y14.92%
PM growth 3Y-9.38%
PM growth 5Y66.52%
GM growth 3Y-1.98%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
GEN 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 GEN has been reduced compared to 1 year ago.
Compared to 5 years ago, GEN has less shares outstanding
The debt/assets ratio for GEN has been reduced compared to a year ago.
2.2 Solvency
GEN has an Altman-Z score of 1.15. This is a bad value and indicates that GEN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GEN (1.15) is worse than 65.23% of its industry peers.
The Debt to FCF ratio of GEN is 4.02, which is a neutral value as it means it would take GEN, 4.02 years of fcf income to pay off all of its debts.
GEN's Debt to FCF ratio of 4.02 is in line compared to the rest of the industry. GEN outperforms 58.78% of its industry peers.
A Debt/Equity ratio of 3.40 is on the high side and indicates that GEN has dependencies on debt financing.
With a Debt to Equity ratio value of 3.40, GEN is not doing good in the industry: 85.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.98
WACC10.91%
2.3 Liquidity
GEN has a Current Ratio of 0.32. This is a bad value and indicates that GEN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.32, GEN is not doing good in the industry: 96.06% of the companies in the same industry are doing better.
A Quick Ratio of 0.32 indicates that GEN may have some problems paying its short term obligations.
GEN has a Quick ratio of 0.32. This is amonst the worse of the industry: GEN underperforms 96.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.97% over the past year.
GEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
The Revenue has been growing slightly by 2.12% in the past year.
Measured over the past years, GEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.19% on average per year.
EPS 1Y (TTM)12.97%
EPS 3Y10.57%
EPS 5Y4.27%
EPS Q2Q%14.89%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.33%
Revenue growth 5Y9.19%
Sales Q2Q%2.74%
3.2 Future
Based on estimates for the next years, GEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.59% on average per year.
Based on estimates for the next years, GEN will show a small growth in Revenue. The Revenue will grow by 2.16% on average per year.
EPS Next Y13.46%
EPS Next 2Y12.37%
EPS Next 3Y11.29%
EPS Next 5Y8.59%
Revenue Next Year2.94%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.16%
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 accelerating.
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
GEN is valuated correctly with a Price/Earnings ratio of 13.07.
90.32% of the companies in the same industry are more expensive than GEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, GEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.04, the valuation of GEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, GEN is valued cheaper than 93.19% of the companies in the same industry.
GEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEN is valued cheaper than 90.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEN is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
GEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GEN may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)3.06
EPS Next 2Y12.37%
EPS Next 3Y11.29%
5. Dividend
5.1 Amount
GEN has a Yearly Dividend Yield of 1.83%.
GEN's Dividend Yield is rather good when compared to the industry average which is at 11.64. GEN pays more dividend than 94.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, GEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of GEN grows each year by 8.13%, which is quite nice.
GEN has been paying a dividend for at least 10 years, so it has a reliable track record.
GEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.13%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
GEN pays out 51.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GEN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP51.29%
EPS Next 2Y12.37%
EPS Next 3Y11.29%
GEN DIGITAL INC
NASDAQ:GEN (1/21/2025, 5:55:09 PM)
After market: 27.32 0 (0%)27.32
-0.2 (-0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.84%
Inst Owner Change0%
Ins Owners9.26%
Ins Owner Change-0.73%
Market Cap16.83B
Analysts76
Price Target32.61 (19.36%)
Short Float %2.03%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.51
Dividend Growth(5Y)8.13%
DP51.29%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.69%
Min EPS beat(2)-0.99%
Max EPS beat(2)-0.39%
EPS beat(4)1
Avg EPS beat(4)-0.65%
Min EPS beat(4)-2.54%
Max EPS beat(4)1.3%
EPS beat(8)4
Avg EPS beat(8)0.76%
EPS beat(12)8
Avg EPS beat(12)1.09%
EPS beat(16)12
Avg EPS beat(16)1.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.79%
Revenue beat(12)1
Avg Revenue beat(12)-0.24%
Revenue beat(16)3
Avg Revenue beat(16)-0.23%
PT rev (1m)1.6%
PT rev (3m)17.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 11.04 | ||
| P/S | 4.36 | ||
| P/FCF | 7.94 | ||
| P/OCF | 7.89 | ||
| P/B | 8.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)2.09
EY7.65%
EPS(NY)2.47
Fwd EY9.06%
FCF(TTM)3.44
FCFY12.59%
OCF(TTM)3.46
OCFY12.68%
SpS6.26
BVpS3.4
TBVpS-17.17
PEG (NY)0.97
PEG (5Y)3.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 29.55% | ||
| ROCE | 13.55% | ||
| ROIC | 10.71% | ||
| ROICexc | 11.43% | ||
| ROICexgc | N/A | ||
| OM | 40.94% | ||
| PM (TTM) | 16.07% | ||
| GM | 80.4% | ||
| FCFM | 54.97% |
ROA(3y)8.13%
ROA(5y)16.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.02%
ROIC(5y)13.04%
ROICexc(3y)19.03%
ROICexc(5y)19.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.21%
ROCE(5y)16.51%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-32.93%
ROICexc growth 5Y20.86%
OM growth 3Y-9%
OM growth 5Y14.92%
PM growth 3Y-9.38%
PM growth 5Y66.52%
GM growth 3Y-1.98%
GM growth 5Y-0.16%
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 3.36% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 105.43% | ||
| Profit Quality | 341.94% | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.15 |
F-Score6
WACC10.91%
ROIC/WACC0.98
Cap/Depr(3y)3.41%
Cap/Depr(5y)7.78%
Cap/Sales(3y)0.31%
Cap/Sales(5y)0.95%
Profit Quality(3y)167.76%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.97%
EPS 3Y10.57%
EPS 5Y4.27%
EPS Q2Q%14.89%
EPS Next Y13.46%
EPS Next 2Y12.37%
EPS Next 3Y11.29%
EPS Next 5Y8.59%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.33%
Revenue growth 5Y9.19%
Sales Q2Q%2.74%
Revenue Next Year2.94%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.16%
EBIT growth 1Y31.15%
EBIT growth 3Y4.04%
EBIT growth 5Y25.48%
EBIT Next Year7.83%
EBIT Next 3Y5.89%
EBIT Next 5Y3.48%
FCF growth 1Y173.55%
FCF growth 3Y42.93%
FCF growth 5Y9.68%
OCF growth 1Y172.67%
OCF growth 3Y42.99%
OCF growth 5Y6.66%