INFOSYS LTD-SP ADR (INFY) Stock Fundamental Analysis
NYSE:INFY - New York Stock Exchange, Inc. - US4567881085 - ADR
Taking everything into account, INFY scores 7 out of 10 in our fundamental rating. INFY was compared to 82 industry peers in the IT Services industry. INFY gets an excellent profitability rating and is at the same time showing great financial health properties. INFY is not valued too expensively and it also shows a decent growth rate. These ratings could make INFY a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year INFY was profitable.
INFY had a positive operating cash flow in the past year.
INFY had positive earnings in each of the past 5 years.
INFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INFY has a better Return On Assets (19.00%) than 97.47% of its industry peers.
INFY has a better Return On Equity (29.79%) than 92.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.39%, INFY belongs to the top of the industry, outperforming 97.47% of the companies in the same industry.
INFY had an Average Return On Invested Capital over the past 3 years of 24.61%. This is significantly above the industry average of 9.86%.
| 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's Profit Margin of 17.16% is amongst the best of the industry. INFY outperforms 94.94% of its industry peers.
In the last couple of years the Profit Margin of INFY has declined.
Looking at the Operating Margin, with a value of 20.71%, INFY belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
In the last couple of years the Operating Margin of INFY has declined.
INFY has a Gross Margin (30.18%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of INFY has declined.
| 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
INFY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
INFY has a better debt/assets ratio than last year.
2.2 Solvency
INFY has an Altman-Z score of 11.98. This indicates that INFY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.98, INFY belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
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.
INFY has a better Debt to FCF ratio (0.32) than 88.61% of its industry peers.
INFY has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of INFY (0.07) is better than 74.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 11.98 |
ROIC/WACC1.92
WACC12.18%
2.3 Liquidity
INFY has a Current Ratio of 2.19. This indicates that INFY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.19, INFY is doing good in the industry, outperforming 70.89% of the companies in the same industry.
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 70.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.66% over the past year.
Measured over the past years, INFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.87% on average per year.
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)8.66%
EPS 3Y11.6%
EPS 5Y11.87%
EPS Q2Q%4.6%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y13.2%
Sales Q2Q%5.11%
3.2 Future
INFY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.53% yearly.
The Revenue is expected to grow by 7.34% on average over the next years.
EPS Next Y2.86%
EPS Next 2Y7.95%
EPS Next 3Y8.84%
EPS Next 5Y8.53%
Revenue Next Year3.27%
Revenue Next 2Y6.29%
Revenue Next 3Y7.19%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
INFY is valuated quite expensively with a Price/Earnings ratio of 28.20.
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 28.29. INFY is around the same levels.
INFY is valuated rather expensively with a Price/Forward Earnings ratio of 24.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFY indicates a somewhat cheap valuation: INFY is cheaper than 60.76% of the companies listed in the same industry.
INFY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 24.78 |
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 60.76% of the companies listed in the same industry.
60.76% of the companies in the same industry are more expensive than INFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.2 | ||
| EV/EBITDA | 19.6 |
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)9.87
PEG (5Y)2.37
EPS Next 2Y7.95%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
INFY has a Yearly Dividend Yield of 2.13%. 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 2.88. INFY pays more dividend than 91.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, INFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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.
INFY has decreased its dividend 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 2Y7.95%
EPS Next 3Y8.84%
INFOSYS LTD-SP ADR
NYSE:INFY (1/21/2025, 8:07:40 PM)
Premarket: 21.62 +0.47 (+2.22%)21.15
-0.04 (-0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners49.93%
Inst Owner Change-0.26%
Ins Owners13.51%
Ins Owner ChangeN/A
Market Cap87.60B
Analysts77.39
Price Target24.64 (16.5%)
Short Float %2.56%
Short Ratio12.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend35.5
Dividend Growth(5Y)2.38%
DP70.64%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)1.45%
PT rev (3m)8.41%
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)-0.08%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 24.78 | ||
| P/S | 4.83 | ||
| P/FCF | 27.2 | ||
| P/OCF | 25.49 | ||
| P/B | 8.39 | ||
| P/tB | 9.85 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)0.75
EY3.55%
EPS(NY)0.85
Fwd EY4.04%
FCF(TTM)0.78
FCFY3.68%
OCF(TTM)0.83
OCFY3.92%
SpS4.38
BVpS2.52
TBVpS2.15
PEG (NY)9.87
PEG (5Y)2.37
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 | 11.98 |
F-Score5
WACC12.18%
ROIC/WACC1.92
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)8.66%
EPS 3Y11.6%
EPS 5Y11.87%
EPS Q2Q%4.6%
EPS Next Y2.86%
EPS Next 2Y7.95%
EPS Next 3Y8.84%
EPS Next 5Y8.53%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y15.22%
Revenue growth 5Y13.2%
Sales Q2Q%5.11%
Revenue Next Year3.27%
Revenue Next 2Y6.29%
Revenue Next 3Y7.19%
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%