INFOSYS LTD-SP ADR (INFY) Fundamental Analysis & Valuation

NYSE:INFY • US4567881085

Current stock price

12.225 USD
-0.05 (-0.45%)
Last:

This INFY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. INFY Profitability Analysis

1.1 Basic Checks

  • INFY had positive earnings in the past year.
  • In the past year INFY had a positive cash flow from operations.
  • In the past 5 years INFY has always been profitable.
  • Each year in the past 5 years INFY had a positive operating cash flow.
INFY Yearly Net Income VS EBIT VS OCF VS FCFINFY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100B 200B 300B

1.2 Ratios

  • With an excellent Return On Assets value of 18.88%, INFY belongs to the best of the industry, outperforming 94.38% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 31.71%, INFY belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
  • INFY has a Return On Invested Capital of 25.41%. This is amongst the best in the industry. INFY outperforms 97.75% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for INFY is significantly above the industry average of 11.54%.
  • The 3 year average ROIC (24.08%) for INFY is below the current ROIC(25.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 18.88%
ROE 31.71%
ROIC 25.41%
ROA(3y)18.62%
ROA(5y)18.75%
ROE(3y)29.79%
ROE(5y)30.13%
ROIC(3y)24.08%
ROIC(5y)24.51%
INFY Yearly ROA, ROE, ROICINFY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

1.3 Margins

  • The Profit Margin of INFY (16.48%) is better than 92.13% of its industry peers.
  • In the last couple of years the Profit Margin of INFY has declined.
  • With an excellent Operating Margin value of 20.36%, INFY belongs to the best of the industry, outperforming 94.38% of the companies in the same industry.
  • INFY's Operating Margin has declined in the last couple of years.
  • INFY has a Gross Margin of 30.18%. This is comparable to the rest of the industry: INFY outperforms 43.82% of its industry peers.
  • INFY's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 20.36%
PM (TTM) 16.48%
GM 30.18%
OM growth 3Y-1.42%
OM growth 5Y-3.79%
PM growth 3Y0.13%
PM growth 5Y-3.07%
GM growth 3Y-0.09%
GM growth 5Y-2.86%
INFY Yearly Profit, Operating, Gross MarginsINFY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

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9

2. INFY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INFY is creating value.
  • Compared to 1 year ago, INFY has less shares outstanding
  • INFY has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for INFY is higher compared to a year ago.
INFY Yearly Shares OutstandingINFY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
INFY Yearly Total Debt VS Total AssetsINFY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500B 1T 1.5T

2.2 Solvency

  • INFY has an Altman-Z score of 7.56. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of INFY (7.56) is better than 89.89% of its industry peers.
  • INFY has a debt to FCF ratio of 0.28. This is a very positive value and a sign of high solvency as it would only need 0.28 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.28, INFY belongs to the best of the industry, outperforming 87.64% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
  • INFY has a better Debt to Equity ratio (0.06) than 70.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Altman-Z 7.56
ROIC/WACC3.03
WACC8.39%
INFY Yearly LT Debt VS Equity VS FCFINFY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200B 400B 600B 800B

2.3 Liquidity

  • INFY has a Current Ratio of 1.98. This is a normal value and indicates that INFY is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.98, INFY is in line with its industry, outperforming 55.06% of the companies in the same industry.
  • A Quick Ratio of 1.98 indicates that INFY should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.98, INFY perfoms like the industry average, outperforming 55.06% of the companies in the same industry.
  • The current and quick ratio evaluation for INFY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.98
INFY Yearly Current Assets VS Current LiabilitesINFY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200B 400B 600B 800B 1T

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5

3. INFY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.16% over the past year.
  • INFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.45% yearly.
  • INFY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
  • The Revenue has been growing by 12.20% on average over the past years. This is quite good.
EPS 1Y (TTM)11.16%
EPS 3Y7.51%
EPS 5Y9.45%
EPS Q2Q%23.85%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.77%
Revenue growth 5Y12.2%
Sales Q2Q%13.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.33% on average over the next years.
  • INFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.91% yearly.
EPS Next Y9.29%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
EPS Next 5Y7.33%
Revenue Next Year8.07%
Revenue Next 2Y7.37%
Revenue Next 3Y7.01%
Revenue Next 5Y6.91%

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.
INFY Yearly Revenue VS EstimatesINFY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T 2.5T
INFY Yearly EPS VS EstimatesINFY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60 80

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5

4. INFY Valuation Analysis

4.1 Price/Earnings Ratio

  • INFY is valuated correctly with a Price/Earnings ratio of 16.09.
  • INFY's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of INFY to the average of the S&P500 Index (27.15), we can say INFY is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of INFY.
  • INFY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INFY is cheaper than 61.80% of the companies in the same industry.
  • INFY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 16.09
Fwd PE 14.71
INFY Price Earnings VS Forward Price EarningsINFY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • INFY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INFY is cheaper than 69.66% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, INFY is valued a bit cheaper than the industry average as 69.66% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.08
EV/EBITDA 10.4
INFY Per share dataINFY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • INFY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)1.7
EPS Next 2Y8.34%
EPS Next 3Y9.33%

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6

5. INFY Dividend Analysis

5.1 Amount

  • INFY has a Yearly Dividend Yield of 4.10%, which is a nice return.
  • The stock price of INFY dropped by -30.15% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 1.21, INFY pays a better dividend. On top of this INFY pays more dividend than 95.51% of the companies listed in the same industry.
  • INFY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.1%

5.2 History

  • On average, the dividend of INFY grows each year by 16.21%, which is quite nice.
  • INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.21%
Div Incr Years0
Div Non Decr Years0
INFY Yearly Dividends per shareINFY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

5.3 Sustainability

  • INFY pays out 63.36% of its income as dividend. 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.
DP63.36%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
INFY Yearly Income VS Free CF VS DividendINFY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100B 200B 300B
INFY Dividend Payout.INFY Dividend Payout, showing the Payout Ratio.INFY Dividend Payout.PayoutRetained Earnings

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INFY Fundamentals: All Metrics, Ratios and Statistics

INFOSYS LTD-SP ADR

NYSE:INFY (4/28/2026, 11:06:10 AM)

12.225

-0.05 (-0.45%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)04-23
Earnings (Next)07-21
Inst Owners48.87%
Inst Owner Change1.38%
Ins Owners12.99%
Ins Owner Change0%
Market Cap49.47B
Revenue(TTM)1.79T
Net Income(TTM)294.40B
Analysts78.8
Price Target16.48 (34.81%)
Short Float %4.62%
Short Ratio8.28
Dividend
Industry RankSector Rank
Dividend Yield 4.1%
Yearly Dividend0.48
Dividend Growth(5Y)16.21%
DP63.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-12.64%
Max EPS beat(2)11.82%
EPS beat(4)3
Avg EPS beat(4)0.03%
Min EPS beat(4)-12.64%
Max EPS beat(4)11.82%
EPS beat(8)4
Avg EPS beat(8)-0.55%
EPS beat(12)5
Avg EPS beat(12)0.93%
EPS beat(16)5
Avg EPS beat(16)-0.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.51%
Revenue beat(12)0
Avg Revenue beat(12)-1.64%
Revenue beat(16)1
Avg Revenue beat(16)-1.71%
PT rev (1m)-11.44%
PT rev (3m)-13.65%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 16.09
Fwd PE 14.71
P/S 2.61
P/FCF 14.08
P/OCF 13.01
P/B 5.02
P/tB 5.98
EV/EBITDA 10.4
EPS(TTM)0.76
EY6.22%
EPS(NY)0.83
Fwd EY6.8%
FCF(TTM)0.87
FCFY7.1%
OCF(TTM)0.94
OCFY7.69%
SpS4.69
BVpS2.44
TBVpS2.04
PEG (NY)1.73
PEG (5Y)1.7
Graham Number6.45391 (-47.21%)
Profitability
Industry RankSector Rank
ROA 18.88%
ROE 31.71%
ROCE 35.09%
ROIC 25.41%
ROICexc 38.45%
ROICexgc 49.18%
OM 20.36%
PM (TTM) 16.48%
GM 30.18%
FCFM 18.53%
ROA(3y)18.62%
ROA(5y)18.75%
ROE(3y)29.79%
ROE(5y)30.13%
ROIC(3y)24.08%
ROIC(5y)24.51%
ROICexc(3y)35.86%
ROICexc(5y)34.96%
ROICexgc(3y)43.78%
ROICexgc(5y)41.75%
ROCE(3y)33.26%
ROCE(5y)33.84%
ROICexgc growth 3Y8.5%
ROICexgc growth 5Y6.4%
ROICexc growth 3Y4.82%
ROICexc growth 5Y4.4%
OM growth 3Y-1.42%
OM growth 5Y-3.79%
PM growth 3Y0.13%
PM growth 5Y-3.07%
GM growth 3Y-0.09%
GM growth 5Y-2.86%
F-Score7
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Debt/EBITDA 0.15
Cap/Depr 55.63%
Cap/Sales 1.53%
Interest Coverage 250
Cash Conversion 86.79%
Profit Quality 112.42%
Current Ratio 1.98
Quick Ratio 1.98
Altman-Z 7.56
F-Score7
WACC8.39%
ROIC/WACC3.03
Cap/Depr(3y)49.72%
Cap/Depr(5y)54.48%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.57%
Profit Quality(3y)108.46%
Profit Quality(5y)101.23%
High Growth Momentum
Growth
EPS 1Y (TTM)11.16%
EPS 3Y7.51%
EPS 5Y9.45%
EPS Q2Q%23.85%
EPS Next Y9.29%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
EPS Next 5Y7.33%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.77%
Revenue growth 5Y12.2%
Sales Q2Q%13.38%
Revenue Next Year8.07%
Revenue Next 2Y7.37%
Revenue Next 3Y7.01%
Revenue Next 5Y6.91%
EBIT growth 1Y5.51%
EBIT growth 3Y5.25%
EBIT growth 5Y7.94%
EBIT Next Year23.55%
EBIT Next 3Y12.19%
EBIT Next 5Y10.72%
FCF growth 1Y-1.08%
FCF growth 3Y18.5%
FCF growth 5Y8.49%
OCF growth 1Y0.36%
OCF growth 3Y16.83%
OCF growth 5Y8.23%

INFOSYS LTD-SP ADR / INFY Fundamental Analysis FAQ

What is the ChartMill fundamental rating of INFOSYS LTD-SP ADR (INFY) stock?

ChartMill assigns a fundamental rating of 7 / 10 to INFY.


Can you provide the valuation status for INFOSYS LTD-SP ADR?

ChartMill assigns a valuation rating of 5 / 10 to INFOSYS LTD-SP ADR (INFY). This can be considered as Fairly Valued.


What is the profitability of INFY stock?

INFOSYS LTD-SP ADR (INFY) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for INFY stock?

The Price/Earnings (PE) ratio for INFOSYS LTD-SP ADR (INFY) is 16.09 and the Price/Book (PB) ratio is 5.02.


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 9.29% in the next year.