INFA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. INFA has only an average score on both its financial health and profitability. INFA has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year INFA was profitable.
INFA had a positive operating cash flow in the past year.
INFA had negative earnings in 4 of the past 5 years.
INFA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of 0.20%, INFA perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
INFA's Return On Equity of 0.43% is fine compared to the rest of the industry. INFA outperforms 61.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.97%, INFA is in the better half of the industry, outperforming 68.79% of the companies in the same industry.
INFA had an Average Return On Invested Capital over the past 3 years of 1.64%. This is significantly below the industry average of 10.73%.
The 3 year average ROIC (1.64%) for INFA is below the current ROIC(2.97%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	0.2%
ROE	0.43%
ROIC	2.97%

ROA(3y)-1.1%

ROA(5y)-1.72%

ROE(3y)-2.62%

ROE(5y)-5.45%

ROIC(3y)1.64%

ROIC(5y)1.37%

1.3 Margins

With a Profit Margin value of 0.62%, INFA perfoms like the industry average, outperforming 59.22% of the companies in the same industry.
The Operating Margin of INFA (9.75%) is better than 74.47% of its industry peers.
INFA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.75%, INFA belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
In the last couple of years the Gross Margin of INFA has grown nicely.

		Industry Rank	Sector Rank
OM	9.75%
PM (TTM)	0.62%
GM	80.75%

OM growth 3Y26.99%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.32%

GM growth 5Y1.58%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INFA is destroying value.
Compared to 1 year ago, INFA has more shares outstanding
The number of shares outstanding for INFA has been increased compared to 5 years ago.
INFA has a better debt/assets ratio than last year.

2.2 Solvency

INFA has an Altman-Z score of 1.94. This is not the best score and indicates that INFA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of INFA (1.94) is comparable to the rest of the industry.
The Debt to FCF ratio of INFA is 3.86, which is a good value as it means it would take INFA, 3.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.86, INFA is doing good in the industry, outperforming 62.41% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that INFA is somewhat dependend on debt financing.
INFA has a worse Debt to Equity ratio (0.73) than 70.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.73
Debt/FCF	3.86
Altman-Z	1.94

ROIC/WACC0.27

WACC11.04%

2.3 Liquidity

A Current Ratio of 2.16 indicates that INFA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.16, INFA is in the better half of the industry, outperforming 63.12% of the companies in the same industry.
INFA has a Quick Ratio of 2.16. This indicates that INFA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.16, INFA is doing good in the industry, outperforming 63.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.16
Quick Ratio	2.16

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.38% over the past year.
INFA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.32%.
INFA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.65% yearly.

EPS 1Y (TTM)12.38%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%32.14%

Revenue 1Y (TTM)1.32%

Revenue growth 3Y4.33%

Revenue growth 5Y4.65%

Sales Q2Q%3.95%

3.2 Future

Based on estimates for the next years, INFA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.07% on average per year.
INFA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.

EPS Next Y3.79%

EPS Next 2Y10.11%

EPS Next 3Y9.07%

EPS Next 5YN/A

Revenue Next Year2.35%

Revenue Next 2Y4.2%

Revenue Next 3Y5.24%

Revenue Next 5Y5.97%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

INFA is valuated rather expensively with a Price/Earnings ratio of 21.01.
Based on the Price/Earnings ratio, INFA is valued a bit cheaper than the industry average as 73.40% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INFA to the average of the S&P500 Index (28.32), we can say INFA is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.94 indicates a rather expensive valuation of INFA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFA indicates a somewhat cheap valuation: INFA is cheaper than 76.60% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INFA to the average of the S&P500 Index (25.57), we can say INFA is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	21.01
Fwd PE	17.94

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, INFA is valued a bit cheaper than 72.34% of the companies in the same industry.
INFA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INFA is cheaper than 83.69% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.4
EV/EBITDA	27.69

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
INFA has a very decent profitability rating, which may justify a higher PE ratio.