GEN DIGITAL INC (GEN) Fundamental Analysis & Valuation

NASDAQ:GEN • US6687711084

Current stock price

19.37 USD
+0.08 (+0.41%)
At close:
19.37 USD
0 (0%)
After Hours:

This GEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. GEN Profitability Analysis

1.1 Basic Checks

  • GEN had positive earnings in the past year.
  • In the past year GEN had a positive cash flow from operations.
  • Each year in the past 5 years GEN has been profitable.
  • In the past 5 years GEN always reported a positive cash flow from operatings.
GEN Yearly Net Income VS EBIT VS OCF VS FCFGEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • GEN has a Return On Assets of 3.81%. This is in the better half of the industry: GEN outperforms 68.01% of its industry peers.
  • With an excellent Return On Equity value of 25.86%, GEN belongs to the best of the industry, outperforming 88.97% of the companies in the same industry.
  • GEN's Return On Invested Capital of 8.39% is amongst the best of the industry. GEN outperforms 80.88% of its industry peers.
  • GEN had an Average Return On Invested Capital over the past 3 years of 6.59%. This is below the industry average of 11.04%.
  • The last Return On Invested Capital (8.39%) for GEN is above the 3 year average (6.59%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.81%
ROE 25.86%
ROIC 8.39%
ROA(3y)5.48%
ROA(5y)7.44%
ROE(3y)39.34%
ROE(5y)N/A
ROIC(3y)6.59%
ROIC(5y)10.39%
GEN Yearly ROA, ROE, ROICGEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10K 20K 30K

1.3 Margins

  • GEN has a better Profit Margin (12.76%) than 76.47% of its industry peers.
  • GEN's Profit Margin has declined in the last couple of years.
  • GEN has a Operating Margin of 37.34%. This is amongst the best in the industry. GEN outperforms 96.69% of its industry peers.
  • In the last couple of years the Operating Margin of GEN has grown nicely.
  • With a decent Gross Margin value of 78.84%, GEN is doing good in the industry, outperforming 78.31% of the companies in the same industry.
  • In the last couple of years the Gross Margin of GEN has remained more or less at the same level.
Industry RankSector Rank
OM 37.34%
PM (TTM) 12.76%
GM 78.84%
OM growth 3Y3.57%
OM growth 5Y10.54%
PM growth 3Y-18.24%
PM growth 5Y-36.32%
GM growth 3Y-2.04%
GM growth 5Y-0.95%
GEN Yearly Profit, Operating, Gross MarginsGEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 100 150

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2

2. GEN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GEN is destroying value.
  • GEN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for GEN has been increased compared to 5 years ago.
  • The debt/assets ratio for GEN has been reduced compared to a year ago.
GEN Yearly Shares OutstandingGEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
GEN Yearly Total Debt VS Total AssetsGEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 1.08, we must say that GEN is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.08, GEN is doing worse than 61.76% of the companies in the same industry.
  • GEN has a debt to FCF ratio of 5.54. This is a neutral value as GEN would need 5.54 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 5.54, GEN perfoms like the industry average, outperforming 52.57% of the companies in the same industry.
  • A Debt/Equity ratio of 3.50 is on the high side and indicates that GEN has dependencies on debt financing.
  • The Debt to Equity ratio of GEN (3.50) is worse than 86.40% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 5.54
Altman-Z 1.08
ROIC/WACC0.86
WACC9.78%
GEN Yearly LT Debt VS Equity VS FCFGEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • GEN has a Current Ratio of 0.47. This is a bad value and indicates that GEN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • GEN has a worse Current ratio (0.47) than 95.22% of its industry peers.
  • GEN has a Quick Ratio of 0.47. This is a bad value and indicates that GEN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.47, GEN is doing worse than 94.85% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
GEN Yearly Current Assets VS Current LiabilitesGEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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6

3. GEN Growth Analysis

3.1 Past

  • GEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.28%, which is quite good.
  • Measured over the past years, GEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.66% on average per year.
  • The Revenue has grown by 21.45% in the past year. This is a very strong growth!
  • GEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.58% yearly.
EPS 1Y (TTM)15.28%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.29%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.76%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
  • GEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y15.91%
EPS Next 2Y14.37%
EPS Next 3Y13.34%
EPS Next 5Y9.56%
Revenue Next Year26.5%
Revenue Next 2Y15.47%
Revenue Next 3Y11.96%
Revenue Next 5Y6.28%

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 stable.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GEN Yearly Revenue VS EstimatesGEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
GEN Yearly EPS VS EstimatesGEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3

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9

4. GEN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.78, the valuation of GEN can be described as very cheap.
  • 91.54% of the companies in the same industry are more expensive than GEN, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of GEN to the average of the S&P500 Index (26.64), we can say GEN is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 6.67, the valuation of GEN can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, GEN is valued cheaper than 90.44% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of GEN to the average of the S&P500 Index (21.36), we can say GEN is valued rather cheaply.
Industry RankSector Rank
PE 7.78
Fwd PE 6.67
GEN Price Earnings VS Forward Price EarningsGEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 89.34% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEN indicates a rather cheap valuation: GEN is cheaper than 93.01% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.73
EV/EBITDA 8.68
GEN Per share dataGEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10 -15

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.
  • The decent profitability rating of GEN may justify a higher PE ratio.
  • GEN's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.81
EPS Next 2Y14.37%
EPS Next 3Y13.34%

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5

5. GEN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.66%, GEN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.67, GEN pays a better dividend. On top of this GEN pays more dividend than 95.96% of the companies listed in the same industry.
  • GEN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.66%

5.2 History

  • The dividend of GEN decreases each year by -47.18%.
  • GEN has paid a dividend for at least 10 years, which is a reliable track record.
  • GEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-47.18%
Div Incr Years0
Div Non Decr Years4
GEN Yearly Dividends per shareGEN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • GEN pays out 51.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.91%
EPS Next 2Y14.37%
EPS Next 3Y13.34%
GEN Yearly Income VS Free CF VS DividendGEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B
GEN Dividend Payout.GEN Dividend Payout, showing the Payout Ratio.GEN Dividend Payout.PayoutRetained Earnings

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GEN Fundamentals: All Metrics, Ratios and Statistics

GEN DIGITAL INC

NASDAQ:GEN (5/1/2026, 8:00:01 PM)

After market: 19.37 0 (0%)

19.37

+0.08 (+0.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth86.34
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners91.29%
Inst Owner Change0.3%
Ins Owners9.44%
Ins Owner Change-0.52%
Market Cap11.73B
Revenue(TTM)4.73B
Net Income(TTM)603.00M
Analysts75.29
Price Target31.9 (64.69%)
Short Float %4.66%
Short Ratio3.71
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
Yearly Dividend0.5
Dividend Growth(5Y)-47.18%
DP51.91%
Div Incr Years0
Div Non Decr Years4
Ex-Date02-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.5%
Min EPS beat(2)0.34%
Max EPS beat(2)0.66%
EPS beat(4)4
Avg EPS beat(4)1.87%
Min EPS beat(4)0.34%
Max EPS beat(4)5.74%
EPS beat(8)6
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)0.81%
EPS beat(16)12
Avg EPS beat(16)1.28%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1.08%
Revenue beat(4)3
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)4.75%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)3
Avg Revenue beat(12)-0.05%
Revenue beat(16)4
Avg Revenue beat(16)0.19%
PT rev (1m)-4.2%
PT rev (3m)-5.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 7.78
Fwd PE 6.67
P/S 2.48
P/FCF 7.73
P/OCF 7.62
P/B 5.03
P/tB N/A
EV/EBITDA 8.68
EPS(TTM)2.49
EY12.85%
EPS(NY)2.9
Fwd EY14.99%
FCF(TTM)2.5
FCFY12.93%
OCF(TTM)2.54
OCFY13.12%
SpS7.8
BVpS3.85
TBVpS-17.71
PEG (NY)0.49
PEG (5Y)0.81
Graham Number14.6873 (-24.18%)
Profitability
Industry RankSector Rank
ROA 3.81%
ROE 25.86%
ROCE 13.43%
ROIC 8.39%
ROICexc 8.8%
ROICexgc N/A
OM 37.34%
PM (TTM) 12.76%
GM 78.84%
FCFM 32.09%
ROA(3y)5.48%
ROA(5y)7.44%
ROE(3y)39.34%
ROE(5y)N/A
ROIC(3y)6.59%
ROIC(5y)10.39%
ROICexc(3y)7.07%
ROICexc(5y)14.76%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.55%
ROCE(5y)16.63%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-35.61%
ROICexc growth 5Y-8.57%
OM growth 3Y3.57%
OM growth 5Y10.54%
PM growth 3Y-18.24%
PM growth 5Y-36.32%
GM growth 3Y-2.04%
GM growth 5Y-0.95%
F-Score6
Asset Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 5.54
Debt/EBITDA 3.64
Cap/Depr 4.6%
Cap/Sales 0.47%
Interest Coverage 3.06
Cash Conversion 68.61%
Profit Quality 251.58%
Current Ratio 0.47
Quick Ratio 0.47
Altman-Z 1.08
F-Score6
WACC9.78%
ROIC/WACC0.86
Cap/Depr(3y)3.18%
Cap/Depr(5y)3.56%
Cap/Sales(3y)0.36%
Cap/Sales(5y)0.31%
Profit Quality(3y)193.32%
Profit Quality(5y)164.42%
High Growth Momentum
Growth
EPS 1Y (TTM)15.28%
EPS 3Y8.25%
EPS 5Y9.66%
EPS Q2Q%14.29%
EPS Next Y15.91%
EPS Next 2Y14.37%
EPS Next 3Y13.34%
EPS Next 5Y9.56%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.06%
Revenue growth 5Y9.58%
Sales Q2Q%25.76%
Revenue Next Year26.5%
Revenue Next 2Y15.47%
Revenue Next 3Y11.96%
Revenue Next 5Y6.28%
EBIT growth 1Y9.9%
EBIT growth 3Y16.07%
EBIT growth 5Y21.14%
EBIT Next Year11.33%
EBIT Next 3Y8.75%
EBIT Next 5Y3.55%
FCF growth 1Y56.07%
FCF growth 3Y7.6%
FCF growth 5YN/A
OCF growth 1Y55.45%
OCF growth 3Y7.82%
OCF growth 5YN/A

GEN DIGITAL INC / GEN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of GEN DIGITAL INC (GEN) stock?

ChartMill assigns a fundamental rating of 6 / 10 to GEN.


What is the valuation status of GEN DIGITAL INC (GEN) stock?

ChartMill assigns a valuation rating of 9 / 10 to GEN DIGITAL INC (GEN). This can be considered as Undervalued.


Can you provide the profitability details for GEN DIGITAL INC?

GEN DIGITAL INC (GEN) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for GEN stock?

The Price/Earnings (PE) ratio for GEN DIGITAL INC (GEN) is 7.78 and the Price/Book (PB) ratio is 5.03.


Is the dividend of GEN DIGITAL INC sustainable?

The dividend rating of GEN DIGITAL INC (GEN) is 5 / 10 and the dividend payout ratio is 51.91%.