GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
230.38 USD
-8.55 (-3.58%)
230.38 USD
0 (0%)
IT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 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.
- IT had a positive operating cash flow in the past year.
- 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
- IT has a better Return On Assets (12.22%) than 90.91% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for IT is significantly below the industry average of 28.99%.
- 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
- The Profit Margin of IT (13.71%) is better than 87.50% of its industry peers.
- In the last couple of years the Profit Margin of IT has grown nicely.
- IT has a better Operating Margin (18.07%) than 92.05% of its industry peers.
- In the last couple of years the Operating Margin of IT has grown nicely.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IT is creating value.
- IT has less shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 4.09 indicates that IT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of IT (4.09) is better than 67.05% 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.
- 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.
- 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 | 4.09 |
ROIC/WACC3
WACC8.67%
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.
- The Current ratio of IT (0.88) is worse than 84.09% of its industry peers.
- A Quick Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, IT is doing worse than 82.95% of the companies in the same industry.
| 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.
- The Revenue has been growing slightly by 5.24% in the past 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
- Based on estimates for the next years, IT will show a small growth in Earnings Per Share. The EPS will grow by 3.11% on average per year.
- The Revenue is expected to grow by 4.62% on average over the next years.
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
- Based on the Price/Earnings ratio of 15.65, the valuation of IT can be described as correct.
- 73.86% 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 27.54, which is the current average of the S&P500 Index.
- IT is valuated correctly with a Price/Forward Earnings ratio of 16.52.
- Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than 70.45% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of IT to the average of the S&P500 Index (24.31), we can say IT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than 70.45% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IT is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 12.87 |
4.3 Compensation for Growth
- The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
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% |
230.38
-8.55 (-3.58%)
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 Cap16.61B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (24.54%)
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 | 15.65 | ||
| Fwd PE | 16.52 | ||
| P/S | 2.57 | ||
| P/FCF | 13.66 | ||
| P/OCF | 12.47 | ||
| P/B | 29.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.87 |
EPS(TTM)14.72
EY6.39%
EPS(NY)13.94
Fwd EY6.05%
FCF(TTM)16.87
FCFY7.32%
OCF(TTM)18.47
OCFY8.02%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.54
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
WACC8.67%
ROIC/WACC3
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.