GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
229.71 USD
-1.07 (-0.46%)
IT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While IT has a great profitability rating, 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.
In the past year IT had a positive cash flow from operations.
Each year in the past 5 years IT has been profitable.
IT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IT's Return On Assets of 12.22% is amongst the best of the industry. IT outperforms 91.76% of its industry peers.
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.
IT's Return On Invested Capital of 25.97% is amongst the best of the industry. IT outperforms 96.47% of its industry peers.
IT had an Average Return On Invested Capital over the past 3 years of 23.67%. This is significantly below the industry average of 29.77%.
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 88.24% of its industry peers.
IT's Profit Margin has improved in the last couple of years.
IT has a Operating Margin of 18.07%. This is amongst the best in the industry. IT outperforms 91.76% of its industry peers.
In the last couple of years the Operating Margin of IT has grown nicely.
Looking at the Gross Margin, with a value of 68.17%, IT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Gross Margin of IT has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IT is creating value.
Compared to 1 year ago, IT has less shares outstanding
The number of shares outstanding for IT has been reduced compared to 5 years ago.
IT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.09 indicates that IT is not in any danger for bankruptcy at the moment.
IT's Altman-Z score of 4.09 is fine compared to the rest of the industry. IT outperforms 67.06% of its industry peers.
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.
IT's Debt to FCF ratio of 2.03 is fine compared to the rest of the industry. IT outperforms 70.59% of its industry peers.
IT has a Debt/Equity ratio of 4.42. This is a high value indicating a heavy dependency on external financing.
IT has a worse Debt to Equity ratio (4.42) than 84.71% 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 | 4.09 |
ROIC/WACC3.12
WACC8.32%
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 83.53% 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.
IT has a Quick ratio of 0.88. This is amonst the worse of the industry: IT underperforms 82.35% of its industry peers.
| 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.
Measured over the past years, IT shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.24% on average per year.
The Revenue has been growing slightly by 5.24% in the past year.
Measured over the past years, IT shows a quite strong growth in Revenue. The Revenue has been growing by 8.10% on average per year.
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
Based on estimates for the next years, IT will show a small growth in Earnings Per Share. The EPS will grow by 2.16% on average per year.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 5.11% on average per year.
EPS Next Y-10.82%
EPS Next 2Y-2.29%
EPS Next 3Y2.16%
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y4.04%
Revenue Next 3Y5.11%
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
Based on the Price/Earnings ratio of 15.61, the valuation of IT can be described as correct.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
IT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 17.06, IT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 68.24% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. IT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than 68.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-2.29%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:IT (12/2/2025, 12:22:58 PM)
229.71
-1.07 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.21%
Inst Owner Change-1.03%
Ins Owners1.91%
Ins Owner Change1.78%
Market Cap16.56B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target287.42 (25.12%)
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)-6.85%
PT rev (3m)-13.65%
EPS NQ rev (1m)7.11%
EPS NQ rev (3m)7.01%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 17.06 | ||
| P/S | 2.56 | ||
| P/FCF | 13.62 | ||
| P/OCF | 12.44 | ||
| P/B | 29.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.89 |
EPS(TTM)14.72
EY6.41%
EPS(NY)13.46
Fwd EY5.86%
FCF(TTM)16.87
FCFY7.34%
OCF(TTM)18.47
OCFY8.04%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.53
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 | 4.09 |
F-Score6
WACC8.32%
ROIC/WACC3.12
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-10.82%
EPS Next 2Y-2.29%
EPS Next 3Y2.16%
EPS Next 5YN/A
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
Revenue Next Year3.92%
Revenue Next 2Y4.04%
Revenue Next 3Y5.11%
Revenue Next 5YN/A
EBIT growth 1Y1.76%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year17.6%
EBIT Next 3Y9.23%
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 15.61 and the Price/Book (PB) ratio is 29.75.