INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
18.07 USD
-0.22 (-1.2%)
18.07 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to INFY. INFY was compared to 85 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 is not valued too expensively and it also shows a decent growth rate.
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.
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.
The Return On Equity of INFY (27.22%) is better than 88.24% of its industry peers.
INFY has a Return On Invested Capital of 22.52%. This is amongst the best in the industry. INFY outperforms 95.29% of its industry peers.
INFY had an Average Return On Invested Capital over the past 3 years of 24.18%. This 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
With an excellent Profit Margin value of 16.60%, INFY belongs to the best 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's Operating Margin of 21.03% is amongst the best of the industry. INFY outperforms 94.12% 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 30.53%, INFY perfoms like the industry average, 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INFY is creating value.
The number of shares outstanding for INFY remains at a similar level compared to 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
An Altman-Z score of 10.26 indicates that INFY is not in any danger for bankruptcy at the moment.
INFY has a Altman-Z score of 10.26. 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.
INFY has a better Debt to FCF ratio (0.25) than 87.06% of its industry peers.
INFY has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
INFY has a better Debt to Equity ratio (0.06) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 10.26 |
ROIC/WACC2.77
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.28 indicates that INFY has no problem at all paying 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.
INFY's Quick ratio of 2.27 is fine compared to the rest of the industry. INFY outperforms 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.
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 been growing slightly by 7.91% in the past year.
The Revenue has been growing by 12.41% on average over the past years. This is quite good.
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
INFY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
The Revenue is expected to grow by 5.26% on average over the next years.
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
The Price/Earnings ratio is 24.09, which indicates a rather expensive current valuation of INFY.
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 (26.46), we can say INFY is valued inline with the index average.
The Price/Forward Earnings ratio is 21.23, which indicates a rather expensive current valuation of INFY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFY is on the same level as its industry peers.
INFY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INFY is valued a bit cheaper than 64.71% of the companies in the same industry.
61.18% of the companies in the same industry are more expensive than INFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 15.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
INFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)2.28
EPS Next 2Y8.95%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.96, INFY pays a better dividend. On top of this INFY pays more dividend than 96.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, INFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
5.3 Sustainability
INFY pays out 63.35% 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.
DP63.35%
EPS Next 2Y8.95%
EPS Next 3Y8.98%
18.07
-0.22 (-1.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.3%
Inst Owner Change1.83%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap74.91B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts80
Price Target19.76 (9.35%)
Short Float %4.29%
Short Ratio10.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 | 24.09 | ||
| Fwd PE | 21.23 | ||
| P/S | 3.97 | ||
| P/FCF | 19.51 | ||
| P/OCF | 18.13 | ||
| P/B | 6.51 | ||
| P/tB | 7.59 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)0.75
EY4.15%
EPS(NY)0.85
Fwd EY4.71%
FCF(TTM)0.93
FCFY5.13%
OCF(TTM)1
OCFY5.51%
SpS4.55
BVpS2.77
TBVpS2.38
PEG (NY)2.27
PEG (5Y)2.28
Graham Number6.84
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 | 10.26 |
F-Score6
WACC8.14%
ROIC/WACC2.77
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 24.09 and the Price/Book (PB) ratio is 6.51.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.