GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
229.77 USD
-2.33 (-1%)
229.77 USD
0 (0%)
Overall IT gets a fundamental rating of 6 out of 10. We evaluated IT 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.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
IT has a Return On Assets of 12.22%. This is amongst the best in the industry. IT outperforms 90.59% 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 has a Return On Invested Capital of 25.97%. This is amongst the best in 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 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 87.06% of its industry peers.
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 91.76% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT's Gross Margin of 68.17% is amongst the best of the industry. IT outperforms 88.24% 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%
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
The number of shares outstanding for IT has been reduced compared to 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 4.09. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
IT has a better Altman-Z score (4.09) than 67.06% 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.
Looking at the Debt to FCF ratio, with a value of 2.03, IT is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
A Debt/Equity ratio of 4.42 is on the high side and indicates that IT has dependencies on debt financing.
IT has a Debt to Equity ratio of 4.42. This is amonst the worse of the industry: IT underperforms 85.88% 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/WACC3.09
WACC8.41%
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 85.88% of its industry peers.
A Quick Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, IT is not doing good in the industry: 84.71% 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
The Earnings Per Share has grown by an impressive 25.92% over the past year.
The Earnings Per Share has been growing by 29.24% on average over the past years. This is a very strong growth
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
IT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.83% yearly.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
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.
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 15.61, IT is valued correctly.
72.94% of the companies in the same industry are more expensive than IT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.46, IT is valued a bit cheaper.
IT is valuated correctly with a Price/Forward Earnings ratio of 16.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 69.41% of the companies listed in the same industry.
IT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than the industry average as 69.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IT is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 12.83 |
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-0.86%
EPS Next 3Y2.83%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
229.77
-2.33 (-1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change-1.03%
Ins Owners2.01%
Ins Owner Change1.78%
Market Cap16.56B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target287.42 (25.09%)
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)-5.35%
PT rev (3m)-13.65%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)7.01%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 16.58 | ||
| P/S | 2.56 | ||
| P/FCF | 13.62 | ||
| P/OCF | 12.44 | ||
| P/B | 29.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.83 |
EPS(TTM)14.72
EY6.41%
EPS(NY)13.86
Fwd EY6.03%
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
WACC8.41%
ROIC/WACC3.09
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-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
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 Year23.38%
EBIT Next 3Y10.25%
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 29.76.