INFOSYS LTD-SP ADR (INFY)
US4567881085 - ADR
Taking everything into account, INFY scores 6 out of 10 in our fundamental rating. INFY was compared to 83 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 is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, INFY could be worth investigating further for quality investing!.
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.
Each year in the past 5 years INFY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.00%, INFY belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
INFY's Return On Equity of 29.79% is amongst the best of the industry. INFY outperforms 92.59% of its industry peers.
INFY's Return On Invested Capital of 23.39% is amongst the best of the industry. INFY outperforms 97.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INFY is significantly above the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19% | ||
| ROE | 29.79% | ||
| ROIC | 23.39% |
ROA(3y)18.98%
ROA(5y)18.54%
ROE(3y)30.36%
ROE(5y)28.35%
ROIC(3y)24.61%
ROIC(5y)22.98%
1.3 Margins
INFY has a Profit Margin of 17.16%. This is amongst the best in the industry. INFY outperforms 95.06% of its industry peers.
INFY's Profit Margin has declined in the last couple of years.
The Operating Margin of INFY (20.71%) is better than 96.30% of its industry peers.
In the last couple of years the Operating Margin of INFY has declined.
INFY has a Gross Margin of 30.18%. This is comparable to the rest of the industry: INFY outperforms 40.74% of its industry peers.
INFY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.71% | ||
| PM (TTM) | 17.16% | ||
| GM | 30.18% |
OM growth 3Y-5.66%
OM growth 5Y-2.17%
PM growth 3Y-3.94%
PM growth 5Y-1.73%
GM growth 3Y-4.81%
GM growth 5Y-2.88%
2. Health
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 about the same amount of shares outstanding.
INFY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for INFY has been reduced compared to a year ago.
2.2 Solvency
INFY has an Altman-Z score of 12.47. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
INFY's Altman-Z score of 12.47 is amongst the best of the industry. INFY outperforms 93.83% of its industry peers.
The Debt to FCF ratio of INFY is 0.32, which is an excellent value as it means it would take INFY, only 0.32 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.32, INFY belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that INFY is not too dependend on debt financing.
INFY's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. INFY outperforms 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 12.47 |
ROIC/WACC1.88
WACC12.45%
2.3 Liquidity
A Current Ratio of 2.19 indicates that INFY has no problem at all paying its short term obligations.
The Current ratio of INFY (2.19) is better than 70.37% of its industry peers.
A Quick Ratio of 2.19 indicates that INFY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.19, INFY is doing good in the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
INFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.72%, which is quite good.
INFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.87% yearly.
INFY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.85%.
The Revenue has been growing by 13.20% on average over the past years. This is quite good.
EPS 1Y (TTM)8.72%
EPS 3Y11.6%
EPS 5Y11.87%
EPS Q2Q%4.66%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y13.2%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
Based on estimates for the next years, INFY will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y2.92%
EPS Next 2Y7.98%
EPS Next 3Y8.86%
EPS Next 5Y8.55%
Revenue Next Year3.36%
Revenue Next 2Y6.25%
Revenue Next 3Y8%
Revenue Next 5Y7.34%
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.
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
Based on the Price/Earnings ratio of 29.52, the valuation of INFY can be described as expensive.
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 (27.73), we can say INFY is valued inline with the index average.
INFY is valuated quite expensively with a Price/Forward Earnings ratio of 26.15.
The rest of the industry has a similar Price/Forward Earnings ratio as INFY.
INFY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 26.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as INFY.
INFY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 20.73 |
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)10.12
PEG (5Y)2.49
EPS Next 2Y7.98%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.10%.
INFY's Dividend Yield is rather good when compared to the industry average which is at 2.74. INFY pays more dividend than 91.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, INFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of INFY has a limited annual growth rate of 2.38%.
INFY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of INFY decreased recently.
Dividend Growth(5Y)2.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
INFY pays out 70.64% of its income as dividend. This is not a sustainable payout ratio.
INFY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP70.64%
EPS Next 2Y7.98%
EPS Next 3Y8.86%
INFOSYS LTD-SP ADR
NYSE:INFY (12/20/2024, 8:18:32 PM)
After market: 22.7301 0 (0%)22.73
-0.69 (-2.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.93%
Inst Owner Change-4.98%
Ins Owners13.51%
Ins Owner ChangeN/A
Market Cap94.15B
Analysts75.74
Price Target24.29 (6.86%)
Short Float %2.59%
Short Ratio11.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)2.38%
DP70.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.03%
Min EPS beat(2)-5.96%
Max EPS beat(2)-0.1%
EPS beat(4)1
Avg EPS beat(4)4.27%
Min EPS beat(4)-5.96%
Max EPS beat(4)25.93%
EPS beat(8)1
Avg EPS beat(8)0.01%
EPS beat(12)2
Avg EPS beat(12)-1.13%
EPS beat(16)4
Avg EPS beat(16)-1.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)3
Avg Revenue beat(16)-1.55%
PT rev (1m)-3.37%
PT rev (3m)7.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 26.15 | ||
| P/S | 5.1 | ||
| P/FCF | 28.71 | ||
| P/OCF | 26.9 | ||
| P/B | 8.85 | ||
| P/tB | 10.4 | ||
| EV/EBITDA | 20.73 |
EPS(TTM)0.77
EY3.39%
EPS(NY)0.87
Fwd EY3.82%
FCF(TTM)0.79
FCFY3.48%
OCF(TTM)0.84
OCFY3.72%
SpS4.46
BVpS2.57
TBVpS2.19
PEG (NY)10.12
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19% | ||
| ROE | 29.79% | ||
| ROCE | 32.2% | ||
| ROIC | 23.39% | ||
| ROICexc | 33.29% | ||
| ROICexgc | 41.07% | ||
| OM | 20.71% | ||
| PM (TTM) | 17.16% | ||
| GM | 30.18% | ||
| FCFM | 17.76% |
ROA(3y)18.98%
ROA(5y)18.54%
ROE(3y)30.36%
ROE(5y)28.35%
ROIC(3y)24.61%
ROIC(5y)22.98%
ROICexc(3y)33.44%
ROICexc(5y)32.07%
ROICexgc(3y)38.4%
ROICexgc(5y)37.07%
ROCE(3y)33.88%
ROCE(5y)31.63%
ROICexcg growth 3Y1.22%
ROICexcg growth 5Y-0.55%
ROICexc growth 3Y1.89%
ROICexc growth 5Y-0.96%
OM growth 3Y-5.66%
OM growth 5Y-2.17%
PM growth 3Y-3.94%
PM growth 5Y-1.73%
GM growth 3Y-4.81%
GM growth 5Y-2.88%
F-Score5
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.32 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 40.22% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.04% | ||
| Profit Quality | 103.49% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 12.47 |
F-Score5
WACC12.45%
ROIC/WACC1.88
Cap/Depr(3y)56.75%
Cap/Depr(5y)69.81%
Cap/Sales(3y)1.66%
Cap/Sales(5y)2.14%
Profit Quality(3y)89.5%
Profit Quality(5y)94.84%
High Growth Momentum
Growth
EPS 1Y (TTM)8.72%
EPS 3Y11.6%
EPS 5Y11.87%
EPS Q2Q%4.66%
EPS Next Y2.92%
EPS Next 2Y7.98%
EPS Next 3Y8.86%
EPS Next 5Y8.55%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y13.2%
Sales Q2Q%5.11%
Revenue Next Year3.36%
Revenue Next 2Y6.25%
Revenue Next 3Y8%
Revenue Next 5Y7.34%
EBIT growth 1Y-0.47%
EBIT growth 3Y8.7%
EBIT growth 5Y10.75%
EBIT Next Year20.75%
EBIT Next 3Y13.97%
EBIT Next 5Y11.37%
FCF growth 1Y39.82%
FCF growth 3Y1.48%
FCF growth 5Y11.42%
OCF growth 1Y33.38%
OCF growth 3Y1.47%
OCF growth 5Y9.73%