GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
233.89 USD
+1.23 (+0.53%)
234.4 USD
+0.51 (+0.22%)
Taking everything into account, IT scores 6 out of 10 in our fundamental rating. IT was compared to 85 industry peers in the IT Services industry. IT scores excellent on profitability, but there are some minor concerns on its financial health. IT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
IT had positive earnings in the past year.
IT had a positive operating cash flow in the past year.
Each year in the past 5 years IT has been profitable.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.22%, IT belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
With an excellent Return On Equity value of 159.13%, IT belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.97%, IT belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IT is significantly below the industry average of 29.59%.
The 3 year average ROIC (23.67%) for IT is below the current ROIC(25.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 159.13% | ||
| ROIC | 25.97% |
ROA(3y)12.34%
ROA(5y)10.27%
ROE(3y)192.17%
ROE(5y)162.96%
ROIC(3y)23.67%
ROIC(5y)19.92%
1.3 Margins
IT's Profit Margin of 13.71% is amongst the best of the industry. IT outperforms 87.06% of its industry peers.
In the last couple of years the Profit Margin of IT has grown nicely.
The Operating Margin of IT (18.07%) is better than 91.76% of its industry peers.
In the last couple of years the Operating Margin of IT has grown nicely.
With an excellent Gross Margin value of 68.17%, IT belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
IT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.07% | ||
| PM (TTM) | 13.71% | ||
| GM | 68.17% |
OM growth 3Y-1.45%
OM growth 5Y15.83%
PM growth 3Y6.07%
PM growth 5Y29.49%
GM growth 3Y-0.86%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IT is creating value.
The number of shares outstanding for IT has been reduced compared to 1 year ago.
IT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.11 indicates that IT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.11, IT is doing good in the industry, outperforming 64.71% of the companies in the same industry.
IT has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as IT would need 2.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.03, IT is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
IT has a Debt/Equity ratio of 4.42. This is a high value indicating a heavy dependency on external financing.
IT has a Debt to Equity ratio of 4.42. This is amonst the worse of the industry: IT underperforms 85.88% of its industry peers.
Even though the debt/equity ratio score it not favorable for IT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.11 |
ROIC/WACC3.02
WACC8.6%
2.3 Liquidity
IT has a Current Ratio of 0.88. This is a bad value and indicates that IT is not financially healthy enough and could expect problems in meeting its short term obligations.
IT's Current ratio of 0.88 is on the low side compared to the rest of the industry. IT is outperformed by 85.88% of its industry peers.
IT has a Quick Ratio of 0.88. This is a bad value and indicates that IT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, IT is not doing good in the industry: 84.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.92% over the past year.
The Earnings Per Share has been growing by 29.24% on average over the past years. This is a very strong growth
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)25.92%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%10.4%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
3.2 Future
IT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.83% yearly.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
EPS Next 5YN/A
Revenue Next Year4%
Revenue Next 2Y3.67%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 15.89 indicates a correct valuation of IT.
IT's Price/Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 72.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. IT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.88 indicates a correct valuation of IT.
68.24% of the companies in the same industry are more expensive than IT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, IT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
68.24% of the companies in the same industry are more expensive than IT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IT is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
5. Dividend
5.1 Amount
No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
233.89
+1.23 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change-0.97%
Ins Owners2.01%
Ins Owner Change1.65%
Market Cap16.86B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target287.42 (22.89%)
Short Float %6.76%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.06%
Min EPS beat(2)3.71%
Max EPS beat(2)10.41%
EPS beat(4)4
Avg EPS beat(4)20.84%
Min EPS beat(4)3.71%
Max EPS beat(4)62.75%
EPS beat(8)8
Avg EPS beat(8)13.16%
EPS beat(12)12
Avg EPS beat(12)18.82%
EPS beat(16)16
Avg EPS beat(16)20.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)1
Avg Revenue beat(12)-1.99%
Revenue beat(16)3
Avg Revenue beat(16)-1.39%
PT rev (1m)-5.35%
PT rev (3m)-13.65%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)7.01%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.61 | ||
| P/FCF | 13.86 | ||
| P/OCF | 12.66 | ||
| P/B | 30.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.99 |
EPS(TTM)14.72
EY6.29%
EPS(NY)13.86
Fwd EY5.93%
FCF(TTM)16.87
FCFY7.21%
OCF(TTM)18.47
OCFY7.9%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.54
Graham Number50.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 159.13% | ||
| ROCE | 31.05% | ||
| ROIC | 25.97% | ||
| ROICexc | 41.93% | ||
| ROICexgc | N/A | ||
| OM | 18.07% | ||
| PM (TTM) | 13.71% | ||
| GM | 68.17% | ||
| FCFM | 18.82% |
ROA(3y)12.34%
ROA(5y)10.27%
ROE(3y)192.17%
ROE(5y)162.96%
ROIC(3y)23.67%
ROIC(5y)19.92%
ROICexc(3y)34.69%
ROICexc(5y)27.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.3%
ROCE(5y)23.82%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y16.45%
ROICexc growth 5Y36.24%
OM growth 3Y-1.45%
OM growth 5Y15.83%
PM growth 3Y6.07%
PM growth 5Y29.49%
GM growth 3Y-0.86%
GM growth 5Y1.3%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 56.59% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.11% | ||
| Profit Quality | 137.29% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.11 |
F-Score6
WACC8.6%
ROIC/WACC3.02
Cap/Depr(3y)53.53%
Cap/Depr(5y)45.41%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.73%
Profit Quality(3y)117.52%
Profit Quality(5y)163.53%
High Growth Momentum
Growth
EPS 1Y (TTM)25.92%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%10.4%
EPS Next Y-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
EPS Next 5YN/A
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
Revenue Next Year4%
Revenue Next 2Y3.67%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y1.76%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year23.38%
EBIT Next 3Y10.25%
EBIT Next 5YN/A
FCF growth 1Y19%
FCF growth 3Y3.36%
FCF growth 5Y27.14%
OCF growth 1Y17.33%
OCF growth 3Y4.2%
OCF growth 5Y21.3%
GARTNER INC / IT FAQ
Can you provide the ChartMill fundamental rating for GARTNER INC?
ChartMill assigns a fundamental rating of 6 / 10 to IT.
What is the valuation status of GARTNER INC (IT) stock?
ChartMill assigns a valuation rating of 5 / 10 to GARTNER INC (IT). This can be considered as Fairly Valued.
How profitable is GARTNER INC (IT) stock?
GARTNER INC (IT) has a profitability rating of 9 / 10.
What is the valuation of GARTNER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GARTNER INC (IT) is 15.89 and the Price/Book (PB) ratio is 30.29.