GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
230.57 USD
+4.13 (+1.82%)
230.57 USD
0 (0%)
IT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. IT has an excellent profitability rating, but there are some minor concerns on its financial health. IT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year IT was profitable.
In the past year IT had a positive cash flow from operations.
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 has a better Return On Assets (15.19%) than 96.47% of its industry peers.
With an excellent Return On Equity value of 82.56%, IT belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
The Return On Invested Capital of IT (20.84%) is better than 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IT is below the industry average of 27.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROIC | 20.84% |
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 has a Profit Margin of 19.71%. This is amongst the best in the industry. IT outperforms 96.47% of its industry peers.
IT's Profit Margin has improved in the last couple of years.
IT's Operating Margin of 18.37% is amongst the best of the industry. IT outperforms 92.94% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.96%, IT belongs to the top of the industry, outperforming 87.06% 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 | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% |
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.
The number of shares outstanding for IT has been reduced compared to 1 year ago.
The number of shares outstanding for IT has been reduced compared to 5 years ago.
The debt/assets ratio for IT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.89 indicates that IT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.89, IT is doing good in the industry, outperforming 67.06% of the companies in the same industry.
IT has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
IT has a better Debt to FCF ratio (1.63) than 74.12% of its industry peers.
A Debt/Equity ratio of 1.61 is on the high side and indicates that IT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.61, IT is doing worse than 74.12% of the companies in the same industry.
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 | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 3.89 |
ROIC/WACC2.41
WACC8.66%
2.3 Liquidity
IT has a Current Ratio of 1.11. This is a normal value and indicates that IT is financially healthy and should not expect problems in meeting its short term obligations.
IT has a Current ratio of 1.11. This is in the lower half of the industry: IT underperforms 71.76% of its industry peers.
A Quick Ratio of 1.11 indicates that IT should not have too much problems paying its short term obligations.
The Quick ratio of IT (1.11) is worse than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
IT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.92%, which is quite impressive.
The Earnings Per Share has been growing by 29.24% on average over the past years. This is a very strong growth
IT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.10%.
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)6.1%
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 2.16% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 15.66, IT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 72.94% of the companies listed in the same industry.
IT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
IT is valuated rather expensively with a Price/Forward Earnings ratio of 17.13.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than 69.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, IT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 68.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IT is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
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 |
230.57
+4.13 (+1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.21%
Inst Owner Change-0.65%
Ins Owners1.91%
Ins Owner Change1.72%
Market Cap17.46B
Revenue(TTM)6.27B
Net Income(TTM)1.27B
Analysts73.91
Price Target303.66 (31.7%)
Short Float %6.55%
Short Ratio3.32
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)5.11%
Min EPS beat(2)3.71%
Max EPS beat(2)6.5%
EPS beat(4)4
Avg EPS beat(4)18.68%
Min EPS beat(4)1.75%
Max EPS beat(4)62.75%
EPS beat(8)8
Avg EPS beat(8)15.24%
EPS beat(12)12
Avg EPS beat(12)20.04%
EPS beat(16)16
Avg EPS beat(16)21.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-7.13%
PT rev (3m)-38.08%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-9.25%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 17.13 | ||
| P/S | 2.72 | ||
| P/FCF | 11.55 | ||
| P/OCF | 10.76 | ||
| P/B | 11.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.59 |
EPS(TTM)14.72
EY6.38%
EPS(NY)13.46
Fwd EY5.84%
FCF(TTM)19.96
FCFY8.66%
OCF(TTM)21.43
OCFY9.29%
SpS84.76
BVpS20.24
TBVpS-23.51
PEG (NY)N/A
PEG (5Y)0.54
Graham Number81.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROCE | 24.91% | ||
| ROIC | 20.84% | ||
| ROICexc | 38.89% | ||
| ROICexgc | N/A | ||
| OM | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% | ||
| FCFM | 23.55% |
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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 54.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.35% | ||
| Profit Quality | 119.47% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 3.89 |
F-Score8
WACC8.66%
ROIC/WACC2.41
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)6.1%
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 1Y2.74%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year17.6%
EBIT Next 3Y9.23%
EBIT Next 5YN/A
FCF growth 1Y50.85%
FCF growth 3Y3.36%
FCF growth 5Y27.14%
OCF growth 1Y45.12%
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 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 8 / 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 15.66 and the Price/Book (PB) ratio is 11.39.