GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
234.18 USD
+10.05 (+4.48%)
234.18 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
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
The Return On Assets of IT (12.22%) is better than 91.76% of its industry peers.
Looking at the Return On Equity, with a value of 159.13%, IT belongs to the top 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.
The Average Return On Invested Capital over the past 3 years for IT is significantly below the industry average of 29.78%.
The last Return On Invested Capital (25.97%) for IT is above the 3 year average (23.67%), which is a sign of increasing profitability.
| 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.
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.
IT's Operating Margin has improved in the last couple of years.
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
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
IT has less shares outstanding than it did 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 4.13 indicates that IT is not in any danger for bankruptcy at the moment.
The Altman-Z score of IT (4.13) is better than 68.24% of its industry peers.
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.
The Debt to FCF ratio of IT (2.03) is better than 70.59% 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.
The Debt to Equity ratio of IT (4.42) is worse 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 | 4.13 |
ROIC/WACC3.07
WACC8.47%
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.
With a Current ratio value of 0.88, IT is not doing good in the industry: 83.53% 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.
With a Quick ratio value of 0.88, IT is not doing good in the industry: 82.35% 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
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.
IT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.24% yearly.
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
IT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.16% yearly.
The Revenue is expected to grow by 5.11% on average over the next years.
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
Based on the Price/Earnings ratio of 15.91, 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 70.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IT to the average of the S&P500 Index (25.45), we can say IT is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.39, which indicates a rather expensive current valuation of IT.
IT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 67.06% of the companies in the same industry.
IT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IT is valued a bit cheaper than 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.59 | ||
| EV/EBITDA | 13.14 |
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 |
234.18
+10.05 (+4.48%)
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 Change2.23%
Market Cap17.74B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target303.66 (29.67%)
Short Float %5.75%
Short Ratio3.19
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)-1.58%
PT rev (3m)-36.23%
EPS NQ rev (1m)6.89%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 17.39 | ||
| P/S | 2.75 | ||
| P/FCF | 14.59 | ||
| P/OCF | 13.32 | ||
| P/B | 31.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.14 |
EPS(TTM)14.72
EY6.29%
EPS(NY)13.46
Fwd EY5.75%
FCF(TTM)16.05
FCFY6.86%
OCF(TTM)17.58
OCFY7.51%
SpS85.29
BVpS7.35
TBVpS-34.2
PEG (NY)N/A
PEG (5Y)0.54
Graham Number49.33
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
WACC8.47%
ROIC/WACC3.07
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 15.91 and the Price/Book (PB) ratio is 31.87.