INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
18.57 USD
-0.59 (-3.08%)
18.57 USD
0 (0%)
Taking everything into account, INFY scores 6 out of 10 in our fundamental rating. INFY was compared to 88 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making INFY a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, INFY is valued expensive at the moment.
1. Profitability
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.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of INFY (17.54%) is better than 95.45% of its industry peers.
INFY's Return On Equity of 27.22% is amongst the best of the industry. INFY outperforms 88.64% of its industry peers.
INFY has a better Return On Invested Capital (22.52%) than 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INFY is significantly below the industry average of 29.60%.
| 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's Profit Margin of 16.60% is amongst the best of the industry. INFY outperforms 92.05% of its industry peers.
INFY's Profit Margin has declined in the last couple of years.
The Operating Margin of INFY (21.03%) is better than 94.32% of its industry peers.
In the last couple of years the Operating Margin of INFY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 30.53%, INFY is in line with its industry, outperforming 43.18% of the companies in the same industry.
In the last couple of years the Gross Margin of INFY has declined.
| 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.
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.
Compared to 1 year ago, INFY has an improved debt to assets ratio.
2.2 Solvency
INFY has an Altman-Z score of 10.58. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.58, INFY belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
The Debt to FCF ratio of INFY is 0.25, which is an excellent value as it means it would take INFY, only 0.25 years of fcf income to pay off all of its debts.
INFY has a Debt to FCF ratio of 0.25. This is amongst the best in the industry. INFY outperforms 87.50% of its industry peers.
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 70.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 10.58 |
ROIC/WACC2.62
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.28 indicates that INFY has no problem at all paying its short term obligations.
INFY's Current ratio of 2.28 is fine compared to the rest of the industry. INFY outperforms 67.05% 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 68.18% of its industry peers.
| 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%.
INFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
Looking at the last year, INFY shows a small growth in Revenue. The Revenue has grown by 7.91% in the last 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
The Earnings Per Share is expected to grow by 6.25% 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 5.26% yearly.
EPS Next Y10.65%
EPS Next 2Y8.93%
EPS Next 3Y8.58%
EPS Next 5Y6.25%
Revenue Next Year6.98%
Revenue Next 2Y6.82%
Revenue Next 3Y6.98%
Revenue Next 5Y5.26%
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 24.43, INFY is valued on the expensive side.
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 (26.50), we can say INFY is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.77, INFY is valued on the expensive side.
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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 21.77 |
4.2 Price Multiples
64.77% of the companies in the same industry are more expensive than INFY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 16.39 |
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)2.29
PEG (5Y)2.31
EPS Next 2Y8.93%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.77%.
INFY's Dividend Yield is rather good when compared to the industry average which is at 0.43. INFY pays more dividend than 96.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, INFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
On average, the dividend of INFY grows each year by 17.16%, which is quite nice.
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
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 2Y8.93%
EPS Next 3Y8.58%
18.57
-0.59 (-3.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.3%
Inst Owner Change1.81%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap76.98B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts80
Price Target19.76 (6.41%)
Short Float %4.29%
Short Ratio11.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)2.98%
PT rev (3m)0.27%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 21.77 | ||
| P/S | 4.07 | ||
| P/FCF | 20 | ||
| P/OCF | 18.59 | ||
| P/B | 6.68 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 16.39 |
EPS(TTM)0.76
EY4.09%
EPS(NY)0.85
Fwd EY4.59%
FCF(TTM)0.93
FCFY5%
OCF(TTM)1
OCFY5.38%
SpS4.56
BVpS2.78
TBVpS2.39
PEG (NY)2.29
PEG (5Y)2.31
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 | 10.58 |
F-Score6
WACC8.58%
ROIC/WACC2.62
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 Y10.65%
EPS Next 2Y8.93%
EPS Next 3Y8.58%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year6.98%
Revenue Next 2Y6.82%
Revenue Next 3Y6.98%
Revenue Next 5Y5.26%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year20.82%
EBIT Next 3Y11.69%
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 3 / 10 to INFOSYS LTD-SP ADR (INFY). This can be considered as Overvalued.
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 24.43 and the Price/Book (PB) ratio is 6.68.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.