GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
237.45 USD
+1.66 (+0.7%)
Taking everything into account, IT scores 6 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
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.
- IT had positive earnings in each of the past 5 years.
- In the past 5 years IT always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.22%, IT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- IT's Return On Equity of 159.13% is amongst the best of the industry. IT outperforms 98.86% of its industry peers.
- IT has a Return On Invested Capital of 25.97%. This is amongst the best in the industry. IT outperforms 96.59% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IT is significantly below the industry average of 28.99%.
- 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's Operating Margin of 18.07% is amongst the best of the industry. IT outperforms 92.05% of its industry peers.
- In the last couple of years the Operating Margin of IT has grown nicely.
- IT has a better Gross Margin (68.17%) than 88.64% of its industry peers.
- 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
- IT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means 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
- IT has an Altman-Z score of 4.13. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.13, IT is in the better half of the industry, outperforming 67.05% 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.
- IT's Debt to FCF ratio of 2.03 is fine compared to the rest of the industry. IT outperforms 71.59% of its industry peers.
- A Debt/Equity ratio of 4.42 is on the high side and indicates that IT has dependencies on debt financing.
- IT's Debt to Equity ratio of 4.42 is on the low side compared to the rest of the industry. IT is outperformed by 81.82% of its industry peers.
- Although IT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.13 |
ROIC/WACC2.97
WACC8.75%
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 84.09% 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 worse Quick ratio (0.88) than 82.95% 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.
- IT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.24%.
- 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 3.11% yearly.
- Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y-6.59%
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
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.
- 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
- IT is valuated correctly with a Price/Earnings ratio of 16.13.
- Based on the Price/Earnings ratio, IT is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. IT is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 17.03, which indicates a rather expensive current valuation of IT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 68.18% of the companies listed in the same industry.
- IT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
- 71.59% 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 cheaply inside the industry as 80.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.08 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
- The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
- No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:IT (1/14/2026, 10:08:03 AM)
237.45
+1.66 (+0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners106.88%
Inst Owner Change0.18%
Ins Owners2%
Ins Owner Change3.18%
Market Cap17.12B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (20.83%)
Short Float %7.6%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.18%
PT rev (3m)-7.01%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)0.27%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 17.03 | ||
| P/S | 2.65 | ||
| P/FCF | 14.08 | ||
| P/OCF | 12.86 | ||
| P/B | 30.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)14.72
EY6.2%
EPS(NY)13.94
Fwd EY5.87%
FCF(TTM)16.87
FCFY7.1%
OCF(TTM)18.47
OCFY7.78%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.55
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 | 4.13 |
F-Score6
WACC8.75%
ROIC/WACC2.97
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-6.59%
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
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 Year23.53%
EBIT Next 3Y10.35%
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 for IT stock?
ChartMill assigns a valuation rating of 6 / 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 expected EPS growth for GARTNER INC (IT) stock?
The Earnings per Share (EPS) of GARTNER INC (IT) is expected to decline by -6.59% in the next year.