GEN DIGITAL INC (GEN)
US6687711084 - Common Stock
GEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While GEN has a great profitability rating, there are quite some 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
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.
GEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GEN has a better Return On Assets (4.01%) than 73.74% of its industry peers.
Looking at the Return On Equity, with a value of 29.55%, GEN belongs to the top of the industry, outperforming 91.01% of the companies in the same industry.
GEN has a Return On Invested Capital of 10.71%. This is amongst the best in the industry. GEN outperforms 87.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEN is in line with the industry average of 12.23%.
| 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
With an excellent Profit Margin value of 16.07%, GEN belongs to the best of the industry, outperforming 83.09% of the companies in the same industry.
In the last couple of years the Profit Margin of GEN has grown nicely.
The Operating Margin of GEN (40.94%) is better than 97.48% of its industry peers.
In the last couple of years the Operating Margin of GEN has grown nicely.
GEN's Gross Margin of 80.40% is amongst the best of the industry. GEN outperforms 80.58% 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.
GEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GEN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that GEN is in the distress zone and has some risk of bankruptcy.
GEN has a Altman-Z score of 1.15. This is in the lower half of the industry: GEN underperforms 64.39% of its industry peers.
GEN has a debt to FCF ratio of 4.02. This is a neutral value as GEN would need 4.02 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.02, GEN perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
GEN has a Debt/Equity ratio of 3.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GEN (3.40) is worse than 84.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.93
WACC11.48%
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.
GEN has a Current ratio of 0.32. This is amonst the worse of the industry: GEN underperforms 96.04% of its industry peers.
GEN has a Quick 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.
GEN has a Quick ratio of 0.32. This is amonst the worse of the industry: GEN underperforms 96.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
GEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.97%, which is quite good.
GEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
Looking at the last year, GEN shows a small growth in Revenue. The Revenue has grown by 2.12% in the last 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
The Earnings Per Share is expected to grow by 8.59% on average over the next years. This is quite good.
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 Y13.34%
EPS Next 2Y12.37%
EPS Next 3Y10.88%
EPS Next 5Y8.59%
Revenue Next Year2.91%
Revenue Next 2Y3.15%
Revenue Next 3Y3.15%
Revenue Next 5Y2.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 13.32, which indicates a correct valuation of GEN.
Based on the Price/Earnings ratio, GEN is valued cheaper than 90.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, GEN is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.24, the valuation of GEN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GEN is valued cheaply inside the industry as 92.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, GEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEN is valued cheaply inside the industry as 90.65% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GEN is valued cheaper than 97.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 12.2 |
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)1
PEG (5Y)3.12
EPS Next 2Y12.37%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
GEN has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
GEN's Dividend Yield is rather good when compared to the industry average which is at 13.45. GEN pays more dividend than 95.32% of the companies in the same industry.
GEN's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of GEN is nicely growing with an annual growth rate of 8.13%!
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
51.29% of the earnings are spent on dividend by GEN. 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 3Y10.88%
GEN DIGITAL INC
NASDAQ:GEN (12/20/2024, 8:14:27 PM)
After market: 27.83 0 (0%)27.83
+0.38 (+1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change-96.92%
Ins Owners3.84%
Ins Owner Change-0.73%
Market Cap17.15B
Analysts75.71
Price Target32.09 (15.31%)
Short Float %1.98%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Dividend Growth(5Y)8.13%
DP51.29%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)15.08%
PT rev (3m)15.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.24 | ||
| P/S | 4.45 | ||
| P/FCF | 8.09 | ||
| P/OCF | 8.03 | ||
| P/B | 8.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)2.09
EY7.51%
EPS(NY)2.48
Fwd EY8.89%
FCF(TTM)3.44
FCFY12.36%
OCF(TTM)3.46
OCFY12.45%
SpS6.26
BVpS3.4
TBVpS-17.17
PEG (NY)1
PEG (5Y)3.12
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
WACC11.48%
ROIC/WACC0.93
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 Y13.34%
EPS Next 2Y12.37%
EPS Next 3Y10.88%
EPS Next 5Y8.59%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.33%
Revenue growth 5Y9.19%
Sales Q2Q%2.74%
Revenue Next Year2.91%
Revenue Next 2Y3.15%
Revenue Next 3Y3.15%
Revenue Next 5Y2.16%
EBIT growth 1Y31.15%
EBIT growth 3Y4.04%
EBIT growth 5Y25.48%
EBIT Next Year8.85%
EBIT Next 3Y5.31%
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%