INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
17.48 USD
+0.06 (+0.34%)
17.48 USD
0 (0%)
Overall INFY gets a fundamental rating of 6 out of 10. We evaluated INFY against 86 industry peers in the IT Services industry. INFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INFY has a correct valuation and a medium 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.
INFY had positive earnings in each of the past 5 years.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
INFY has a better Return On Assets (17.54%) than 96.47% of its industry peers.
INFY's Return On Equity of 27.22% is amongst the best of the industry. INFY outperforms 88.24% of its industry peers.
INFY has a better Return On Invested Capital (22.52%) than 95.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INFY is significantly below the industry average of 29.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 27.22% | ||
| ROIC | 22.52% |
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
Looking at the Profit Margin, with a value of 16.60%, INFY belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
In the last couple of years the Profit Margin of INFY has declined.
INFY has a better Operating Margin (21.03%) than 94.12% of its industry peers.
INFY's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.53%, INFY is in line with its industry, outperforming 42.35% of the companies in the same industry.
INFY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.03% | ||
| PM (TTM) | 16.6% | ||
| GM | 30.53% |
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.
INFY has about the same amout of shares outstanding than it did 1 year ago.
INFY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for INFY has been reduced compared to a year ago.
2.2 Solvency
INFY has an Altman-Z score of 9.91. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
INFY has a Altman-Z score of 9.91. This is amongst the best in the industry. INFY outperforms 94.12% of its industry peers.
INFY has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.25, INFY belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
INFY has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, INFY is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 9.91 |
ROIC/WACC2.72
WACC8.29%
2.3 Liquidity
INFY has a Current Ratio of 2.28. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
INFY has a Current ratio of 2.28. This is in the better half of the industry: INFY outperforms 68.24% of its industry peers.
INFY has a Quick Ratio of 2.27. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of INFY (2.27) is better than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.25% over the past year.
The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
INFY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.91%.
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)4.25%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%13.14%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
3.2 Future
Based on estimates for the next years, INFY will show a small growth in Earnings Per Share. The EPS will grow by 6.25% on average per year.
Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y10.61%
EPS Next 2Y8.95%
EPS Next 3Y8.98%
EPS Next 5Y6.25%
Revenue Next Year6.93%
Revenue Next 2Y6.84%
Revenue Next 3Y6.79%
Revenue Next 5Y5.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
INFY is valuated rather expensively with a Price/Earnings ratio of 23.00.
The rest of the industry has a similar Price/Earnings ratio as INFY.
Compared to an average S&P500 Price/Earnings ratio of 26.31, INFY is valued at the same level.
The Price/Forward Earnings ratio is 20.44, which indicates a rather expensive current valuation of INFY.
INFY's Price/Forward Earnings ratio is in line with the industry average.
INFY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 20.44 |
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 64.71% of the companies listed in the same industry.
INFY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INFY is cheaper than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 14.82 |
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)2.17
PEG (5Y)2.18
EPS Next 2Y8.95%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.87%. 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 2.03. INFY pays more dividend than 96.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, INFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
63.35% of the earnings are spent on dividend by INFY. This is not a sustainable payout ratio.
The dividend of INFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP63.35%
EPS Next 2Y8.95%
EPS Next 3Y8.98%
17.48
+0.06 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.88%
Inst Owner Change1.83%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap72.46B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts79.18
Price Target19.1 (9.27%)
Short Float %4.21%
Short Ratio8.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.55
Dividend Growth(5Y)17.16%
DP63.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.36%
Max EPS beat(2)0.59%
EPS beat(4)3
Avg EPS beat(4)0.63%
Min EPS beat(4)-1.14%
Max EPS beat(4)2.71%
EPS beat(8)4
Avg EPS beat(8)2.45%
EPS beat(12)4
Avg EPS beat(12)0.22%
EPS beat(16)5
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.87%
Revenue beat(12)0
Avg Revenue beat(12)-1.98%
Revenue beat(16)2
Avg Revenue beat(16)-1.67%
PT rev (1m)-4.67%
PT rev (3m)-4.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)1.65%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 20.44 | ||
| P/S | 3.83 | ||
| P/FCF | 18.79 | ||
| P/OCF | 17.47 | ||
| P/B | 6.27 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)0.76
EY4.35%
EPS(NY)0.86
Fwd EY4.89%
FCF(TTM)0.93
FCFY5.32%
OCF(TTM)1
OCFY5.73%
SpS4.57
BVpS2.79
TBVpS2.39
PEG (NY)2.17
PEG (5Y)2.18
Graham Number6.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 27.22% | ||
| ROCE | 31.26% | ||
| ROIC | 22.52% | ||
| ROICexc | 36.96% | ||
| ROICexgc | 46.85% | ||
| OM | 21.03% | ||
| PM (TTM) | 16.6% | ||
| GM | 30.53% | ||
| FCFM | 20.36% |
ROA(3y)18.71%
ROA(5y)18.55%
ROE(3y)29.87%
ROE(5y)28.86%
ROIC(3y)24.18%
ROIC(5y)23.55%
ROICexc(3y)34%
ROICexc(5y)33.29%
ROICexgc(3y)40.01%
ROICexgc(5y)38.92%
ROCE(3y)33.56%
ROCE(5y)32.7%
ROICexgc growth 3Y4.76%
ROICexgc growth 5Y5.75%
ROICexc growth 3Y2.44%
ROICexc growth 5Y4.71%
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%
F-Score6
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 54.32% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.77% | ||
| Profit Quality | 122.68% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 9.91 |
F-Score6
WACC8.29%
ROIC/WACC2.72
Cap/Depr(3y)51.53%
Cap/Depr(5y)56.25%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.69%
Profit Quality(3y)98.5%
Profit Quality(5y)101.51%
High Growth Momentum
Growth
EPS 1Y (TTM)4.25%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%13.14%
EPS Next Y10.61%
EPS Next 2Y8.95%
EPS Next 3Y8.98%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year6.93%
Revenue Next 2Y6.84%
Revenue Next 3Y6.79%
Revenue Next 5Y5.26%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year19.65%
EBIT Next 3Y11.71%
EBIT Next 5Y8.68%
FCF growth 1Y61.87%
FCF growth 3Y15.48%
FCF growth 5Y17.02%
OCF growth 1Y54.94%
OCF growth 3Y14.33%
OCF growth 5Y13.98%
INFOSYS LTD-SP ADR / INFY FAQ
Can you provide the ChartMill fundamental rating for INFOSYS LTD-SP ADR?
ChartMill assigns a fundamental rating of 6 / 10 to INFY.
What is the valuation status of INFOSYS LTD-SP ADR (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.
What are the PE and PB ratios of INFOSYS LTD-SP ADR (INFY) stock?
The Price/Earnings (PE) ratio for INFOSYS LTD-SP ADR (INFY) is 23 and the Price/Book (PB) ratio is 6.27.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.