INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
USA - NYSE:INFY - US4567881085 - ADR
16.81 USD
+0.16 (+0.96%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. INFY has a correct valuation and a medium growth rate.
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.
In the past 5 years INFY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 17.54%, INFY belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
The Return On Equity of INFY (27.22%) is better than 88.24% of its industry peers.
INFY has a Return On Invested Capital of 22.52%. This is amongst the best in the industry. INFY outperforms 94.12% 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 29.74%.
| 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.
INFY's Operating Margin has been stable in the last couple of years.
INFY has a Gross Margin of 30.53%. This is comparable to the rest of the industry: INFY outperforms 42.35% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INFY is creating value.
INFY has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for INFY has been reduced compared to 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 9.53. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
INFY's Altman-Z score of 9.53 is amongst the best of the industry. INFY outperforms 92.94% of its industry peers.
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 better Debt to FCF ratio (0.25) than 87.06% of its industry peers.
INFY has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
INFY has a Debt to Equity ratio of 0.06. This is in the better half of the industry: INFY outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 9.53 |
ROIC/WACC2.78
WACC8.11%
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 68.24% of its industry peers.
A Quick Ratio of 2.27 indicates that INFY has no problem at all paying its short term obligations.
INFY's Quick ratio of 2.27 is fine compared to the rest of the industry. INFY outperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.25% over the past year.
The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
Looking at the last year, INFY shows a small growth in Revenue. The Revenue has grown by 7.91% in the last year.
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
Based on estimates for the next years, INFY will show a small growth in Earnings Per Share. The EPS will grow by 6.01% on average per year.
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
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 21.83.
Compared to the rest of the industry, the Price/Earnings ratio of INFY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.89. INFY is around the same levels.
Based on the Price/Forward Earnings ratio of 19.48, the valuation of INFY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, INFY is valued a bit cheaper than 61.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, INFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 64.71% of the companies listed in the same industry.
INFY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INFY is cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 13.92 |
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.
INFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)2.07
EPS Next 2Y8.95%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, INFY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, INFY pays a better dividend. On top of this INFY pays more dividend than 95.29% of the companies listed in the same industry.
INFY's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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.
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%
NYSE:INFY (11/17/2025, 10:22:58 AM)
16.81
+0.16 (+0.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.88%
Inst Owner Change2.12%
Ins Owners12.74%
Ins Owner ChangeN/A
Market Cap69.68B
Revenue(TTM)1.69T
Net Income(TTM)281.24B
Analysts79.18
Price Target19.19 (14.16%)
Short Float %4.94%
Short Ratio9.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-4.23%
PT rev (3m)-2.39%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)1.67%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 19.48 | ||
| P/S | 3.65 | ||
| P/FCF | 17.91 | ||
| P/OCF | 16.64 | ||
| P/B | 5.98 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)0.77
EY4.58%
EPS(NY)0.86
Fwd EY5.13%
FCF(TTM)0.94
FCFY5.58%
OCF(TTM)1.01
OCFY6.01%
SpS4.61
BVpS2.81
TBVpS2.41
PEG (NY)2.06
PEG (5Y)2.07
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 | 9.53 |
F-Score6
WACC8.11%
ROIC/WACC2.78
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 21.83 and the Price/Book (PB) ratio is 5.98.
How financially healthy is INFOSYS LTD-SP ADR?
The financial health rating of INFOSYS LTD-SP ADR (INFY) is 9 / 10.