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

NYSE:INFY • US4567881085

Current stock price

12.545 USD
+0.08 (+0.68%)
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

  • In the past year INFY was profitable.
  • In the past year INFY had a positive cash flow from operations.
  • 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 2026 100B 200B 300B

1.2 Ratios

  • The Return On Assets of INFY (18.88%) is better than 94.38% of its industry peers.
  • Looking at the Return On Equity, with a value of 31.71%, INFY belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
  • INFY has a Return On Invested Capital of 25.41%. This is amongst the best in the industry. INFY outperforms 97.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for INFY is significantly above the industry average of 11.54%.
  • The 3 year average ROIC (24.08%) for INFY is below the current ROIC(25.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 18.88%
ROE 31.71%
ROIC 25.41%
ROA(3y)18.62%
ROA(5y)18.75%
ROE(3y)29.79%
ROE(5y)30.13%
ROIC(3y)24.08%
ROIC(5y)24.51%
INFY Yearly ROA, ROE, ROICINFY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

1.3 Margins

  • INFY has a better Profit Margin (16.48%) than 92.13% of its industry peers.
  • INFY's Profit Margin has declined in the last couple of years.
  • The Operating Margin of INFY (20.36%) is better than 94.38% of its industry peers.
  • INFY's Operating Margin has declined in the last couple of years.
  • The Gross Margin of INFY (30.18%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of INFY has declined.
Industry RankSector Rank
OM 20.36%
PM (TTM) 16.48%
GM 30.18%
OM growth 3Y-1.42%
OM growth 5Y-3.79%
PM growth 3Y0.13%
PM growth 5Y-3.07%
GM growth 3Y-0.09%
GM growth 5Y-2.86%
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 2026 10 20 30

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9

2. INFY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INFY is creating value.
  • Compared to 1 year ago, INFY has less shares outstanding
  • INFY has less shares outstanding than it did 5 years ago.
  • INFY has a worse 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 2026 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 2026 500B 1T 1.5T

2.2 Solvency

  • INFY has an Altman-Z score of 7.66. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.66, INFY belongs to the best of the industry, outperforming 89.89% of the companies in the same industry.
  • The Debt to FCF ratio of INFY is 0.28, which is an excellent value as it means it would take INFY, only 0.28 years of fcf income to pay off all of its debts.
  • INFY has a better Debt to FCF ratio (0.28) than 87.64% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that INFY is not too dependend on debt financing.
  • INFY has a Debt to Equity ratio of 0.06. This is in the better half of the industry: INFY outperforms 70.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Altman-Z 7.66
ROIC/WACC3.01
WACC8.44%
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 2026 200B 400B 600B 800B

2.3 Liquidity

  • A Current Ratio of 1.98 indicates that INFY should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.98, INFY perfoms like the industry average, outperforming 55.06% of the companies in the same industry.
  • A Quick Ratio of 1.98 indicates that INFY should not have too much problems paying its short term obligations.
  • INFY has a Quick ratio (1.98) which is in line with its industry peers.
  • 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 1.98
Quick Ratio 1.98
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 2026 200B 400B 600B 800B 1T

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5

3. INFY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.16% over the past year.
  • The Earnings Per Share has been growing by 9.45% on average over the past years. This is quite good.
  • Looking at the last year, INFY shows a quite strong growth in Revenue. The Revenue has grown by 9.61% in the last year.
  • The Revenue has been growing by 12.20% on average over the past years. This is quite good.
EPS 1Y (TTM)11.16%
EPS 3Y7.51%
EPS 5Y9.45%
EPS Q2Q%23.85%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.77%
Revenue growth 5Y12.2%
Sales Q2Q%13.38%

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 7.33% on average per year.
  • Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y9.29%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
EPS Next 5Y7.33%
Revenue Next Year8.07%
Revenue Next 2Y7.37%
Revenue Next 3Y7.01%
Revenue Next 5Y6.91%

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.
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 16.73, INFY is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of INFY is on the same level as its industry peers.
  • INFY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 15.21, the valuation of INFY can be described as correct.
  • INFY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INFY is cheaper than 61.80% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of INFY to the average of the S&P500 Index (21.75), we can say INFY is valued slightly cheaper.
Industry RankSector Rank
PE 16.73
Fwd PE 15.21
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

  • 68.54% of the companies in the same industry are more expensive than INFY, based on the Enterprise Value to EBITDA ratio.
  • 69.66% 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 14.56
EV/EBITDA 10.65
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 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 excellent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)1.77
EPS Next 2Y8.34%
EPS Next 3Y9.33%

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6

5. INFY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.11%, INFY is a good candidate for dividend investing.
  • In the last 3 months the price of INFY has falen by -29.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • INFY's Dividend Yield is rather good when compared to the industry average which is at 1.21. INFY pays more dividend than 95.51% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, INFY pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.11%

5.2 History

  • On average, the dividend of INFY grows each year by 16.21%, which is quite nice.
  • INFY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.21%
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

  • 63.36% of the earnings are spent on dividend by INFY. This is not a sustainable payout ratio.
  • INFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.36%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
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 2026 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 (5/1/2026, 1:17:03 PM)

12.545

+0.08 (+0.68%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-23
Earnings (Next)07-21
Inst Owners48.87%
Inst Owner Change1.38%
Ins Owners12.99%
Ins Owner Change0%
Market Cap50.77B
Revenue(TTM)1.79T
Net Income(TTM)294.40B
Analysts78.8
Price Target16.48 (31.37%)
Short Float %4.62%
Short Ratio8.28
Dividend
Industry RankSector Rank
Dividend Yield 4.11%
Yearly Dividend0.48
Dividend Growth(5Y)16.21%
DP63.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-12.64%
Max EPS beat(2)11.82%
EPS beat(4)3
Avg EPS beat(4)0.03%
Min EPS beat(4)-12.64%
Max EPS beat(4)11.82%
EPS beat(8)4
Avg EPS beat(8)-0.55%
EPS beat(12)5
Avg EPS beat(12)0.93%
EPS beat(16)5
Avg EPS beat(16)-0.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.51%
Revenue beat(12)0
Avg Revenue beat(12)-1.64%
Revenue beat(16)1
Avg Revenue beat(16)-1.71%
PT rev (1m)-11.44%
PT rev (3m)-13.65%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 16.73
Fwd PE 15.21
P/S 2.7
P/FCF 14.56
P/OCF 13.45
P/B 5.19
P/tB 6.18
EV/EBITDA 10.65
EPS(TTM)0.75
EY5.98%
EPS(NY)0.82
Fwd EY6.58%
FCF(TTM)0.86
FCFY6.87%
OCF(TTM)0.93
OCFY7.43%
SpS4.65
BVpS2.42
TBVpS2.03
PEG (NY)1.8
PEG (5Y)1.77
Graham Number6.38709 (-49.09%)
Profitability
Industry RankSector Rank
ROA 18.88%
ROE 31.71%
ROCE 35.09%
ROIC 25.41%
ROICexc 38.45%
ROICexgc 49.18%
OM 20.36%
PM (TTM) 16.48%
GM 30.18%
FCFM 18.53%
ROA(3y)18.62%
ROA(5y)18.75%
ROE(3y)29.79%
ROE(5y)30.13%
ROIC(3y)24.08%
ROIC(5y)24.51%
ROICexc(3y)35.86%
ROICexc(5y)34.96%
ROICexgc(3y)43.78%
ROICexgc(5y)41.75%
ROCE(3y)33.26%
ROCE(5y)33.84%
ROICexgc growth 3Y8.5%
ROICexgc growth 5Y6.4%
ROICexc growth 3Y4.82%
ROICexc growth 5Y4.4%
OM growth 3Y-1.42%
OM growth 5Y-3.79%
PM growth 3Y0.13%
PM growth 5Y-3.07%
GM growth 3Y-0.09%
GM growth 5Y-2.86%
F-Score7
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Debt/EBITDA 0.15
Cap/Depr 55.63%
Cap/Sales 1.53%
Interest Coverage 250
Cash Conversion 86.79%
Profit Quality 112.42%
Current Ratio 1.98
Quick Ratio 1.98
Altman-Z 7.66
F-Score7
WACC8.44%
ROIC/WACC3.01
Cap/Depr(3y)49.72%
Cap/Depr(5y)54.48%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.57%
Profit Quality(3y)108.46%
Profit Quality(5y)101.23%
High Growth Momentum
Growth
EPS 1Y (TTM)11.16%
EPS 3Y7.51%
EPS 5Y9.45%
EPS Q2Q%23.85%
EPS Next Y9.29%
EPS Next 2Y8.34%
EPS Next 3Y9.33%
EPS Next 5Y7.33%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.77%
Revenue growth 5Y12.2%
Sales Q2Q%13.38%
Revenue Next Year8.07%
Revenue Next 2Y7.37%
Revenue Next 3Y7.01%
Revenue Next 5Y6.91%
EBIT growth 1Y5.51%
EBIT growth 3Y5.25%
EBIT growth 5Y7.94%
EBIT Next Year23.55%
EBIT Next 3Y12.19%
EBIT Next 5Y10.72%
FCF growth 1Y-1.08%
FCF growth 3Y18.5%
FCF growth 5Y8.49%
OCF growth 1Y0.36%
OCF growth 3Y16.83%
OCF growth 5Y8.23%

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 16.73 and the Price/Book (PB) ratio is 5.19.


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 9.29% in the next year.