INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INFY - US4567881085 - ADR
17.82 USD
-0.22 (-1.22%)
17.82 USD
0 (0%)
Overall INFY gets a fundamental rating of 6 out of 10. We evaluated INFY against 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. 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.
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.
1.2 Ratios
INFY's Return On Assets of 17.54% is amongst the best of the industry. INFY outperforms 95.45% of its industry peers.
Looking at the Return On Equity, with a value of 27.22%, INFY belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
The Return On Invested Capital of INFY (22.52%) is better 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
With an excellent Profit Margin value of 16.60%, INFY belongs to the best of the industry, outperforming 92.05% of the companies in the same industry.
In the last couple of years the Profit Margin of INFY has declined.
INFY has a better Operating Margin (21.03%) 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INFY is creating value.
Compared to 1 year ago, INFY has about the same amount of shares outstanding.
Compared to 5 years ago, INFY has less shares outstanding
The debt/assets ratio for INFY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.16 indicates that INFY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.16, INFY belongs to the best 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.
Looking at the Debt to FCF ratio, with a value of 0.25, INFY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 10.16 |
ROIC/WACC2.66
WACC8.46%
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.
INFY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.91%.
Measured over the past years, INFY shows a quite strong growth in Revenue. The Revenue has been growing by 12.41% on average per year.
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 Y10.91%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
EPS Next 5Y6.25%
Revenue Next Year7.2%
Revenue Next 2Y6.86%
Revenue Next 3Y7.02%
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
INFY is valuated rather expensively with a Price/Earnings ratio of 23.45.
INFY's Price/Earnings ratio is a bit cheaper when compared to the industry. INFY is cheaper than 60.23% of the companies in the same industry.
INFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 20.90, which indicates a rather expensive current valuation of INFY.
INFY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INFY is cheaper than 60.23% of the companies in the same industry.
INFY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
67.05% 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 the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.23 | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of INFY may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)2.22
EPS Next 2Y8.99%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.71%. 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 0.43. INFY pays more dividend than 96.59% of the companies in the same industry.
INFY's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
63.35% 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.
DP63.35%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
17.82
-0.22 (-1.22%)
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 Cap73.87B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts80
Price Target21.3 (19.53%)
Short Float %4.67%
Short Ratio11.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.55
Dividend Growth(5Y)17.16%
DP63.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)11.5%
PT rev (3m)8.07%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 20.9 | ||
| P/S | 3.91 | ||
| P/FCF | 19.23 | ||
| P/OCF | 17.87 | ||
| P/B | 6.42 | ||
| P/tB | 7.48 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)0.76
EY4.26%
EPS(NY)0.85
Fwd EY4.78%
FCF(TTM)0.93
FCFY5.2%
OCF(TTM)1
OCFY5.6%
SpS4.55
BVpS2.78
TBVpS2.38
PEG (NY)2.15
PEG (5Y)2.22
Graham Number6.89
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 | 10.16 |
F-Score6
WACC8.46%
ROIC/WACC2.66
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 Y10.91%
EPS Next 2Y8.99%
EPS Next 3Y8.65%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.91%
Revenue growth 3Y10.25%
Revenue growth 5Y12.41%
Sales Q2Q%8.55%
Revenue Next Year7.2%
Revenue Next 2Y6.86%
Revenue Next 3Y7.02%
Revenue Next 5Y5.26%
EBIT growth 1Y9.53%
EBIT growth 3Y6.94%
EBIT growth 5Y12.02%
EBIT Next Year21.12%
EBIT Next 3Y11.77%
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
What is the ChartMill fundamental rating of INFOSYS LTD-SP ADR (INFY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to INFY.
What is the valuation status for 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.
Can you provide the financial health for INFY stock?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.
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 10.91% in the next year.