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

NYSE:INFY • US4567881085

Current stock price

13.3 USD
+0.18 (+1.37%)
At close:
13.4 USD
+0.1 (+0.75%)
After Hours:

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

  • In the past year INFY was profitable.
  • INFY had a positive operating cash flow in the past year.
  • 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 100B 200B 300B

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.
  • Looking at the Return On Equity, with a value of 33.69%, INFY belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 27.07%, INFY belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
  • INFY had an Average Return On Invested Capital over the past 3 years of 24.18%. This is significantly above the industry average of 11.08%.
  • The 3 year average ROIC (24.18%) for INFY is below the current ROIC(27.07%), indicating increased profibility in the last year.
Industry RankSector 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%
INFY Yearly ROA, ROE, ROICINFY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 16.15%, INFY belongs to the top of the industry, outperforming 94.32% of the companies in the same industry.
  • INFY's Profit Margin has declined in the last couple of years.
  • INFY has a Operating Margin of 20.28%. This is amongst the best in the industry. INFY outperforms 94.32% of its industry peers.
  • INFY's Operating Margin has been stable in the last couple of years.
  • INFY's Gross Margin of 29.98% is in line compared to the rest of the industry. INFY outperforms 42.05% of its industry peers.
  • In the last couple of years the Gross Margin of INFY has declined.
Industry RankSector 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%
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 10 20 30

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9

2. INFY Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INFY is creating value.
  • Compared to 1 year ago, INFY has about the same amount of shares outstanding.
  • Compared to 5 years ago, INFY has less shares outstanding
  • INFY has a better debt/assets ratio than last year.
INFY Yearly Shares OutstandingINFY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 500B 1T

2.2 Solvency

  • An Altman-Z score of 8.12 indicates that INFY is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.12, INFY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
  • The Debt to FCF ratio of INFY is 0.27, which is an excellent value as it means it would take INFY, only 0.27 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.27, INFY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • A Debt/Equity ratio of 0.07 indicates that INFY is not too dependend on debt financing.
  • INFY has a Debt to Equity ratio of 0.07. This is in the better half of the industry: INFY outperforms 71.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.27
Altman-Z 8.12
ROIC/WACC3.15
WACC8.59%
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 200B 400B 600B 800B

2.3 Liquidity

  • A Current Ratio of 1.81 indicates that INFY should not have too much problems paying its short term obligations.
  • INFY has a Current ratio of 1.81. This is comparable to the rest of the industry: INFY outperforms 54.55% 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.
  • 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 1.81
Quick Ratio 1.81
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 200B 400B 600B 800B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. INFY Growth Analysis

3.1 Past

  • INFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.29%.
  • Measured over the past years, INFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
  • The Revenue has grown by 8.24% in the past year. This is quite good.
  • The Revenue has been growing by 12.41% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, INFY will show a small growth in Earnings Per Share. The EPS will grow by 6.40% on average per year.
  • The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y11.21%
EPS Next 2Y9.98%
EPS Next 3Y9.25%
EPS Next 5Y6.4%
Revenue Next Year8.42%
Revenue Next 2Y7.95%
Revenue Next 3Y7.62%
Revenue Next 5Y6.61%

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.
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

  • With a Price/Earnings ratio of 17.97, 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 62.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.54, INFY is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 15.63, INFY is valued correctly.
  • Based on the Price/Forward Earnings ratio, INFY is valued a bit cheaper than 63.64% 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 22.70.
Industry RankSector Rank
PE 17.97
Fwd PE 15.63
INFY Price Earnings VS Forward Price EarningsINFY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 68.18% of the companies in the same industry are more expensive than INFY, based on the Enterprise Value to EBITDA ratio.
  • 67.05% of the companies in the same industry are more expensive than INFY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.66
EV/EBITDA 11.93
INFY Per share dataINFY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • INFY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)1.7
EPS Next 2Y9.98%
EPS Next 3Y9.25%

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5

5. INFY Dividend Analysis

5.1 Amount

  • INFY has a Yearly Dividend Yield of 3.69%.
  • In the last 3 months the price of INFY has falen by -29.22%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.96, INFY pays a better dividend. On top of this INFY pays more dividend than 95.45% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, INFY pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.69%

5.2 History

  • The dividend of INFY is nicely growing with an annual growth rate of 17.16%!
  • INFY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.16%
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

  • 66.69% 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.
DP66.69%
EPS Next 2Y9.98%
EPS Next 3Y9.25%
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 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 (3/23/2026, 8:04:00 PM)

After market: 13.4 +0.1 (+0.75%)

13.3

+0.18 (+1.37%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-14
Earnings (Next)04-15
Inst Owners48.55%
Inst Owner Change-6.82%
Ins Owners12.99%
Ins Owner Change0%
Market Cap53.81B
Revenue(TTM)1.73T
Net Income(TTM)279.72B
Analysts78.8
Price Target20.77 (56.17%)
Short Float %4.5%
Short Ratio9.92
Dividend
Industry RankSector Rank
Dividend Yield 3.69%
Yearly Dividend0.53
Dividend Growth(5Y)17.16%
DP66.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.14%
Min EPS beat(2)-12.64%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)-2.24%
Min EPS beat(4)-12.64%
Max EPS beat(4)2.71%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)4
Avg EPS beat(12)-0.78%
EPS beat(16)4
Avg EPS beat(16)-1.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-2.01%
Revenue beat(16)1
Avg Revenue beat(16)-1.88%
PT rev (1m)0%
PT rev (3m)5.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.92%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.35%
Valuation
Industry RankSector Rank
PE 17.97
Fwd PE 15.63
P/S 2.9
P/FCF 15.66
P/OCF 14.53
P/B 6.04
P/tB 7.34
EV/EBITDA 11.93
EPS(TTM)0.74
EY5.56%
EPS(NY)0.85
Fwd EY6.4%
FCF(TTM)0.85
FCFY6.39%
OCF(TTM)0.92
OCFY6.88%
SpS4.59
BVpS2.2
TBVpS1.81
PEG (NY)1.6
PEG (5Y)1.7
Graham Number6.05
Profitability
Industry RankSector Rank
ROA 19.51%
ROE 33.69%
ROCE 37.58%
ROIC 27.07%
ROICexc 38.05%
ROICexgc 48.86%
OM 20.28%
PM (TTM) 16.15%
GM 29.98%
FCFM 18.5%
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 Turnover1.21
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.27
Debt/EBITDA 0.15
Cap/Depr 52.2%
Cap/Sales 1.44%
Interest Coverage 250
Cash Conversion 86.53%
Profit Quality 114.51%
Current Ratio 1.81
Quick Ratio 1.81
Altman-Z 8.12
F-Score6
WACC8.59%
ROIC/WACC3.15
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)1.29%
EPS 3Y7.07%
EPS 5Y10.57%
EPS Q2Q%-1.53%
EPS Next Y11.21%
EPS Next 2Y9.98%
EPS Next 3Y9.25%
EPS Next 5Y6.4%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.9%
Revenue Next Year8.42%
Revenue Next 2Y7.95%
Revenue Next 3Y7.62%
Revenue Next 5Y6.61%
EBIT growth 1Y4.92%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year20.79%
EBIT Next 3Y12.25%
EBIT Next 5Y10.28%
FCF growth 1Y44.79%
FCF growth 3Y15.48%
FCF growth 5Y17.02%
OCF growth 1Y40.67%
OCF growth 3Y14.33%
OCF growth 5Y13.98%

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.


What is the valuation status for INFY stock?

ChartMill assigns a valuation rating of 5 / 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 8 / 10.


Can you provide the financial health for INFY stock?

The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 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 11.21% in the next year.