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

NYSE:INFY • US4567881085

Current stock price

13.725 USD
-0.35 (-2.45%)
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.
  • Each year in the past 5 years INFY has been profitable.
  • INFY had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (19.51%) than 95.45% of its industry peers.
  • INFY's Return On Equity of 33.69% is amongst the best of the industry. INFY outperforms 93.18% of its industry peers.
  • INFY has a Return On Invested Capital of 27.07%. This is amongst the best in the industry. INFY outperforms 98.86% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for INFY is significantly above the industry average of 10.44%.
  • 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 92.05% 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.
  • 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 (29.98%) which is in line with its industry peers.
  • INFY's Gross Margin has declined in the last couple of years.
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.
  • INFY has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, INFY has less shares outstanding
  • The debt/assets ratio for INFY has been reduced compared to a year ago.
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 8.42 indicates that INFY is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of INFY (8.42) is better than 90.91% of its industry peers.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 0.07, INFY is in the better half of the industry, outperforming 69.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.27
Altman-Z 8.42
ROIC/WACC3.02
WACC8.95%
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

  • INFY has a Current Ratio of 1.81. This is a normal value and indicates that INFY is financially healthy and should not expect problems in meeting its short term obligations.
  • INFY has a Current ratio (1.81) which is comparable to the rest of the industry.
  • 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 comparable to the rest of the industry.
  • INFY does not score too well on the current and quick ratio evaluation. However, as it has 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

  • The Earnings Per Share has been growing slightly by 1.29% 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 10.57% yearly.
  • The Revenue has grown by 8.24% in the past year. This is quite good.
  • 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)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

  • The Earnings Per Share is expected to grow by 6.40% on average over the next years.
  • Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 6.61% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.22%
EPS Next 3Y9.27%
EPS Next 5Y6.4%
Revenue Next Year8.54%
Revenue Next 2Y8.31%
Revenue Next 3Y7.76%
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.
  • 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.
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 18.55, INFY is valued on the expensive side.
  • INFY's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of INFY to the average of the S&P500 Index (27.66), we can say INFY is valued slightly cheaper.
  • INFY is valuated correctly with a Price/Forward Earnings ratio of 16.12.
  • Based on the Price/Forward Earnings ratio, INFY is valued a bit cheaper than 61.36% of the companies in the same industry.
  • INFY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.00.
Industry RankSector Rank
PE 18.55
Fwd PE 16.12
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

  • 65.91% of the companies in the same industry are more expensive than INFY, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, INFY is valued a bit cheaper than 67.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.21
EV/EBITDA 12.7
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)1.62
PEG (5Y)1.75
EPS Next 2Y10.22%
EPS Next 3Y9.27%

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5

5. INFY Dividend Analysis

5.1 Amount

  • INFY has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of INFY dropped by -22.86% 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 1.11, INFY pays a better dividend. On top of this INFY pays more dividend than 93.18% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, INFY pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.41%

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

  • INFY pays out 66.69% of its income as dividend. This is not a sustainable payout ratio.
  • INFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.69%
EPS Next 2Y10.22%
EPS Next 3Y9.27%
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 (4/22/2026, 11:09:08 AM)

13.725

-0.35 (-2.45%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-14
Earnings (Next)04-22
Inst Owners48.87%
Inst Owner Change-0.1%
Ins Owners12.99%
Ins Owner Change0%
Market Cap55.54B
Revenue(TTM)1.73T
Net Income(TTM)279.72B
Analysts78.8
Price Target18.39 (33.99%)
Short Float %4.14%
Short Ratio7.47
Dividend
Industry RankSector Rank
Dividend Yield 3.41%
Yearly Dividend0.54
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)-11.44%
PT rev (3m)-13.65%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)6.57%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 18.55
Fwd PE 16.12
P/S 3
P/FCF 16.21
P/OCF 15.04
P/B 6.26
P/tB 7.6
EV/EBITDA 12.7
EPS(TTM)0.74
EY5.39%
EPS(NY)0.85
Fwd EY6.21%
FCF(TTM)0.85
FCFY6.17%
OCF(TTM)0.91
OCFY6.65%
SpS4.58
BVpS2.19
TBVpS1.81
PEG (NY)1.62
PEG (5Y)1.75
Graham Number6.04434 (-55.96%)
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 8.42
F-Score6
WACC8.95%
ROIC/WACC3.02
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 Y11.44%
EPS Next 2Y10.22%
EPS Next 3Y9.27%
EPS Next 5Y6.4%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.9%
Revenue Next Year8.54%
Revenue Next 2Y8.31%
Revenue Next 3Y7.76%
Revenue Next 5Y6.61%
EBIT growth 1Y4.92%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year20.93%
EBIT Next 3Y12.3%
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.


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 18.55 and the Price/Book (PB) ratio is 6.26.


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 11.44% in the next year.