INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:INFY • US4567881085
18.34 USD
+0.76 (+4.32%)
At close: Feb 2, 2026
18.3 USD
-0.04 (-0.22%)
After Hours: 2/2/2026, 4:56:12 PM
INFY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year INFY was profitable.
- INFY had a positive operating cash flow in the past year.
- INFY had positive earnings in each of the past 5 years.
- Each year in the past 5 years INFY had a positive operating cash flow.
1.2 Ratios
- INFY has a Return On Assets of 19.51%. This is amongst the best in the industry. INFY outperforms 96.59% of its industry peers.
- INFY's Return On Equity of 33.69% is amongst the best of the industry. INFY outperforms 93.18% of its industry peers.
- INFY has a Return On Invested Capital of 27.07%. This is amongst the best in the industry. INFY outperforms 96.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for INFY is below the industry average of 29.07%.
- The last Return On Invested Capital (27.07%) for INFY is above the 3 year average (24.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.51% | ||
| ROE | 33.69% | ||
| ROIC | 27.07% |
ROA(3y)18.71%
ROA(5y)18.55%
ROE(3y)29.87%
ROE(5y)28.86%
ROIC(3y)24.18%
ROIC(5y)23.55%
1.3 Margins
- INFY has a Profit Margin of 16.15%. This is amongst the best in the industry. INFY outperforms 92.05% of its industry peers.
- In the last couple of years the Profit Margin of INFY has declined.
- INFY has a better Operating Margin (20.28%) than 94.32% of its industry peers.
- In the last couple of years the Operating Margin of INFY has remained more or less at the same level.
- With a Gross Margin value of 29.98%, INFY perfoms like the industry average, outperforming 42.05% of the companies in the same industry.
- In the last couple of years the Gross Margin of INFY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 16.15% | ||
| GM | 29.98% |
OM growth 3Y-3%
OM growth 5Y-0.35%
PM growth 3Y-3.39%
PM growth 5Y-2.16%
GM growth 3Y-2.23%
GM growth 5Y-1.65%
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.
- The number of shares outstanding for INFY has been reduced compared to 5 years ago.
- Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
- INFY has an Altman-Z score of 9.63. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of INFY (9.63) is better than 93.18% of its industry peers.
- INFY has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
- The Debt to FCF ratio of INFY (0.27) is better than 88.64% of its industry peers.
- 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 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 9.63 |
ROIC/WACC3.15
WACC8.6%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that INFY should not have too much problems paying its short term obligations.
- INFY's Current ratio of 1.81 is in line compared to the rest of the industry. INFY outperforms 55.68% of its industry peers.
- A Quick Ratio of 1.81 indicates that INFY should not have too much problems paying its short term obligations.
- INFY has a Quick ratio (1.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- INFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.29%.
- INFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
- INFY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
- INFY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.41% yearly.
EPS 1Y (TTM)1.29%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%-1.53%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.9%
3.2 Future
- The Earnings Per Share is expected to grow by 6.40% on average over the next years.
- Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y11.37%
EPS Next 2Y10.05%
EPS Next 3Y9.32%
EPS Next 5Y6.4%
Revenue Next Year7.2%
Revenue Next 2Y6.86%
Revenue Next 3Y7.02%
Revenue Next 5Y5.4%
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 decreasing.
- 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
- With a Price/Earnings ratio of 24.45, INFY is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 60.23% of the companies listed in the same industry.
- INFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 21.23, INFY is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as INFY.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, INFY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 67.05% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.3 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INFY does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)2.31
EPS Next 2Y10.05%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.71%, INFY has a reasonable but not impressive dividend return.
- INFY's Dividend Yield is rather good when compared to the industry average which is at 0.45. INFY pays more dividend than 96.59% of the companies in the same industry.
- INFY's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
- The dividend of INFY is nicely growing with an annual growth rate of 17.16%!
- INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)17.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 66.69% of the earnings are spent on dividend by INFY. This is not a sustainable payout ratio.
- INFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.69%
EPS Next 2Y10.05%
EPS Next 3Y9.32%
INFOSYS LTD-SP ADR / INFY FAQ
What is the ChartMill fundamental rating of INFOSYS LTD-SP ADR (INFY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to INFY.
What is the valuation status for INFY stock?
ChartMill assigns a valuation rating of 4 / 10 to INFOSYS LTD-SP ADR (INFY). This can be considered as Fairly Valued.
Can you provide the profitability details for INFOSYS LTD-SP ADR?
INFOSYS LTD-SP ADR (INFY) has a profitability rating of 7 / 10.
Can you provide the financial health for INFY stock?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 8 / 10.
What is the earnings growth outlook for INFOSYS LTD-SP ADR?
The Earnings per Share (EPS) of INFOSYS LTD-SP ADR (INFY) is expected to grow by 11.37% in the next year.