We assign a fundamental rating of 6 out of 10 to IT. IT was compared to 88 industry peers in the IT Services industry. While IT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IT has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year IT was profitable.
IT had a positive operating cash flow in the past year.
In the past 5 years IT has always been profitable.
In the past 5 years IT always reported a positive cash flow from operatings.

1.2 Ratios

IT's Return On Assets of 12.22% is amongst the best of the industry. IT outperforms 90.91% of its industry peers.
IT has a better Return On Equity (159.13%) than 98.86% of its industry peers.
The Return On Invested Capital of IT (25.97%) is better than 95.45% 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 29.06%.
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

With an excellent Profit Margin value of 13.71%, IT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of IT has grown nicely.
IT has a Operating Margin of 18.07%. This is amongst the best in the industry. IT outperforms 92.05% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT has a Gross Margin of 68.17%. This is amongst the best in the industry. IT outperforms 88.64% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

IT 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, IT has less shares outstanding
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 4.06 indicates that IT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.06, IT is doing good in the industry, outperforming 67.05% of the companies in the same industry.
The Debt to FCF ratio of IT is 2.03, which is a good value as it means it would take IT, 2.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.03, IT is doing good in the industry, outperforming 71.59% 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.
The Debt to Equity ratio of IT (4.42) is worse than 81.82% 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	4.06

ROIC/WACC2.87

WACC9.05%

2.3 Liquidity

A Current Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
With a Current ratio value of 0.88, IT is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
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's Quick ratio of 0.88 is on the low side compared to the rest of the industry. IT is outperformed by 82.95% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.88
Quick Ratio	0.88

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WACC

Debt/Equity

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Altman-Z score

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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.
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
IT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.

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

The Earnings Per Share is expected to grow by 3.20% on average over the next years.
The Revenue is expected to grow by 4.63% on average over the next years.

EPS Next Y-6.5%

EPS Next 2Y-0.47%

EPS Next 3Y3.2%

EPS Next 5YN/A

Revenue Next Year4.03%

Revenue Next 2Y3.68%

Revenue Next 3Y4.63%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.45, the valuation of IT can be described as correct.
72.73% of the companies in the same industry are more expensive than IT, based on the Price/Earnings ratio.
IT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
IT is valuated correctly with a Price/Forward Earnings ratio of 15.23.
IT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 69.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IT to the average of the S&P500 Index (25.72), we can say IT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	14.45
Fwd PE	15.23

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
81.82% of the companies in the same industry are more expensive than IT, based on the Price/Free Cash Flow ratio.