INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - NYSE:INFY - US4567881085 - ADR
16.5 USD
+0.32 (+1.98%)
16.5 USD
0 (0%)
Taking everything into account, INFY scores 6 out of 10 in our fundamental rating. INFY was compared to 85 industry peers in the IT Services industry. INFY gets an excellent profitability rating and is at the same time showing great financial health properties. INFY has a decent growth rate and is not valued too expensively.
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.
In the past 5 years INFY has always been profitable.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
INFY has a Return On Assets of 17.54%. This is amongst the best in the industry. INFY outperforms 97.65% of its industry peers.
INFY has a Return On Equity of 27.22%. This is amongst the best in the industry. INFY outperforms 89.41% of its industry peers.
INFY's Return On Invested Capital of 22.52% is amongst the best of the industry. INFY outperforms 95.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INFY is below the industry average of 27.96%.
| 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
INFY has a Profit Margin of 16.60%. This is amongst the best in the industry. INFY outperforms 92.94% of its industry peers.
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.
In the last couple of years the Operating Margin of INFY has remained more or less at the same level.
INFY has a Gross Margin of 30.53%. This is comparable to the rest of the industry: INFY outperforms 41.18% of its industry peers.
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
INFY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, INFY has about the same amount of shares outstanding.
INFY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.47 indicates that INFY is not in any danger for bankruptcy at the moment.
The Altman-Z score of INFY (9.47) is better than 90.59% 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 88.24% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, INFY is doing good in 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 | 9.47 |
ROIC/WACC2.73
WACC8.26%
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.
Looking at the Current ratio, with a value of 2.28, INFY is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that INFY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.27, INFY is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
INFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.25%.
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.
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
INFY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
INFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y10.61%
EPS Next 2Y8.95%
EPS Next 3Y8.57%
EPS Next 5Y6.01%
Revenue Next Year6.93%
Revenue Next 2Y6.84%
Revenue Next 3Y6.73%
Revenue Next 5Y5.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.43, INFY is valued on the expensive side.
Based on the Price/Earnings ratio, INFY is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.83. INFY is around the same levels.
The Price/Forward Earnings ratio is 19.12, which indicates a rather expensive current valuation of INFY.
Based on the Price/Forward Earnings ratio, INFY is valued a bit cheaper than the industry average as 62.35% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. INFY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INFY is valued a bit cheaper than 62.35% of the companies 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 69.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 13.78 |
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)2.02
PEG (5Y)2.03
EPS Next 2Y8.95%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 3.07%. 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 2.58. INFY pays more dividend than 95.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, INFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of INFY grows each year by 17.16%, 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)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 3Y8.57%
16.5
+0.32 (+1.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.88%
Inst Owner Change1.39%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap68.40B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts79.18
Price Target19.34 (17.21%)
Short Float %4.94%
Short Ratio9.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)-3.49%
PT rev (3m)-1.64%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)1.67%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)2.52%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.12 | ||
| P/S | 3.58 | ||
| P/FCF | 17.58 | ||
| P/OCF | 16.34 | ||
| P/B | 5.87 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)0.77
EY4.67%
EPS(NY)0.86
Fwd EY5.23%
FCF(TTM)0.94
FCFY5.69%
OCF(TTM)1.01
OCFY6.12%
SpS4.61
BVpS2.81
TBVpS2.41
PEG (NY)2.02
PEG (5Y)2.03
Graham Number6.98
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 | 9.47 |
F-Score6
WACC8.26%
ROIC/WACC2.73
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 3Y8.57%
EPS Next 5Y6.01%
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 3Y6.73%
Revenue Next 5Y5.02%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year19.65%
EBIT Next 3Y11.64%
EBIT Next 5Y8.44%
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 21.43 and the Price/Book (PB) ratio is 5.87.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.