INFOSYS LTD-SP ADR (INFY)
US4567881085 - ADR
INFY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making INFY a very profitable company, without any liquidiy or solvency issues. INFY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
INFY had positive earnings in the past year.
INFY had a positive operating cash flow in the past year.
Each year in the past 5 years INFY has been profitable.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of INFY (19.00%) is better than 97.56% of its industry peers.
INFY's Return On Equity of 29.79% is amongst the best of the industry. INFY outperforms 92.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.39%, INFY belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INFY is significantly above the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19% | ||
| ROE | 29.79% | ||
| ROIC | 23.39% |
ROA(3y)18.98%
ROA(5y)18.54%
ROE(3y)30.36%
ROE(5y)28.35%
ROIC(3y)24.61%
ROIC(5y)22.98%
1.3 Margins
With an excellent Profit Margin value of 17.16%, INFY belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of INFY has declined.
With an excellent Operating Margin value of 20.71%, INFY belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
In the last couple of years the Operating Margin of INFY has declined.
The Gross Margin of INFY (30.18%) is comparable to the rest of the industry.
INFY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.71% | ||
| PM (TTM) | 17.16% | ||
| GM | 30.18% |
OM growth 3Y-5.66%
OM growth 5Y-2.17%
PM growth 3Y-3.94%
PM growth 5Y-1.73%
GM growth 3Y-4.81%
GM growth 5Y-2.88%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INFY is creating value.
The number of shares outstanding for INFY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, INFY has less shares outstanding
Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
INFY has an Altman-Z score of 12.10. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INFY (12.10) is better than 91.46% of its industry peers.
INFY has a debt to FCF ratio of 0.32. This is a very positive value and a sign of high solvency as it would only need 0.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.32, INFY belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that INFY is not too dependend on debt financing.
The Debt to Equity ratio of INFY (0.07) is better than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 12.1 |
ROIC/WACC2.03
WACC11.52%
2.3 Liquidity
A Current Ratio of 2.19 indicates that INFY has no problem at all paying its short term obligations.
INFY has a Current ratio of 2.19. This is in the better half of the industry: INFY outperforms 70.73% of its industry peers.
INFY has a Quick Ratio of 2.19. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.19, INFY is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
INFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.73%, which is quite good.
Measured over the past years, INFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.87% on average per year.
The Revenue has been growing slightly by 2.85% in the past year.
The Revenue has been growing by 13.20% on average over the past years. This is quite good.
EPS 1Y (TTM)8.73%
EPS 3Y11.6%
EPS 5Y11.87%
EPS Q2Q%4.67%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y13.2%
Sales Q2Q%5.11%
3.2 Future
INFY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.51% yearly.
INFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
EPS Next Y2.92%
EPS Next 2Y7.98%
EPS Next 3Y8.91%
EPS Next 5Y7.51%
Revenue Next Year3.36%
Revenue Next 2Y6.25%
Revenue Next 3Y7.17%
Revenue Next 5Y7.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 28.52, INFY can be considered very expensive at the moment.
INFY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, INFY is valued at the same level.
With a Price/Forward Earnings ratio of 25.06, INFY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFY is on the same level as its industry peers.
INFY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 25.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as INFY.
The rest of the industry has a similar Price/Free Cash Flow ratio as INFY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.51 | ||
| EV/EBITDA | 19.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)9.77
PEG (5Y)2.4
EPS Next 2Y7.98%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
INFY's Dividend Yield is rather good when compared to the industry average which is at 2.85. INFY pays more dividend than 91.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, INFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of INFY has a limited annual growth rate of 2.38%.
INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
INFY has decreased its dividend recently.
Dividend Growth(5Y)2.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
70.64% of the earnings are spent on dividend by INFY. This is not a sustainable payout ratio.
The dividend of INFY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.64%
EPS Next 2Y7.98%
EPS Next 3Y8.91%
INFOSYS LTD-SP ADR
NYSE:INFY (11/21/2024, 8:04:00 PM)
After market: 21.96 0 (0%)21.96
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap90.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 25.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.77
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19% | ||
| ROE | 29.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.71% | ||
| PM (TTM) | 17.16% | ||
| GM | 30.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.73%
EPS 3Y11.6%
EPS 5Y
EPS Q2Q%
EPS Next Y2.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y