Overall INFA gets a fundamental rating of 5 out of 10. We evaluated INFA against 277 industry peers in the Software industry. Both the profitability and the financial health of INFA get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year INFA had a positive cash flow from operations.
In the past 5 years INFA reported 4 times negative net income.
Each year in the past 5 years INFA had a positive operating cash flow.

1.2 Ratios

INFA has a Return On Assets (0.20%) which is comparable to the rest of the industry.
The Return On Equity of INFA (0.43%) is better than 61.35% of its industry peers.
With a decent Return On Invested Capital value of 2.97%, INFA is doing good in the industry, outperforming 68.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INFA is significantly below the industry average of 10.78%.
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

INFA has a Profit Margin (0.62%) which is in line with its industry peers.
INFA's Operating Margin of 9.75% is fine compared to the rest of the industry. INFA outperforms 74.47% of its industry peers.
In the last couple of years the Operating Margin of INFA has grown nicely.
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

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ROIC

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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.
The number of shares outstanding for INFA has been increased compared to 1 year ago.
Compared to 5 years ago, INFA has more shares outstanding
The debt/assets ratio for INFA has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.94 indicates that INFA is not a great score, but indicates only limited risk for bankruptcy at the moment.
INFA has a Altman-Z score (1.94) which is comparable to the rest of the industry.
INFA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as INFA would need 3.86 years to pay back of 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.
INFA has a Debt/Equity ratio of 0.73. This is a neutral value indicating 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

INFA has a Current Ratio of 2.16. This indicates that INFA is financially healthy and has no problem in meeting 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.
A Quick Ratio of 2.16 indicates that INFA has no problem at all paying its short term obligations.
INFA's Quick ratio of 2.16 is fine compared to the rest of the industry. INFA outperforms 63.48% of its industry peers.

		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.
Looking at the last year, INFA shows a small growth in Revenue. The Revenue has grown by 1.32% in the last year.
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

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

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.01, which indicates a rather expensive current valuation of INFA.
Compared to the rest of the industry, the Price/Earnings ratio of INFA indicates a somewhat cheap valuation: INFA is cheaper than 73.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, INFA is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.94, which indicates a rather expensive current valuation of INFA.
Based on the Price/Forward Earnings ratio, INFA is valued a bit cheaper than 76.60% of the companies in the same industry.
INFA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		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 the industry average as 72.34% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, INFA is valued 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 INFA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of INFA may justify a higher PE ratio.