GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
252.28 USD
-2.31 (-0.91%)
252.12 USD
-0.16 (-0.06%)
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. IT has an excellent profitability rating, but 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.
Each year in the past 5 years IT has been profitable.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IT (12.22%) is better than 90.91% of its industry peers.
IT has a better Return On Equity (159.13%) than 98.86% of its industry peers.
IT has a better Return On Invested Capital (25.97%) than 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 29.60%.
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 has a better Profit Margin (13.71%) than 87.50% 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 92.05% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT has a Gross Margin of 68.17%. This is amongst the best in the industry. IT outperforms 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
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
Compared to 5 years ago, IT has less shares outstanding
IT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.23 indicates that IT is not in any danger for bankruptcy at the moment.
IT has a better Altman-Z score (4.23) than 71.59% of its industry peers.
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 has a Debt to FCF ratio of 2.03. This is in the better half of the industry: IT outperforms 72.73% 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 has a worse Debt to Equity ratio (4.42) than 81.82% 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 | 4.23 |
ROIC/WACC2.96
WACC8.76%
2.3 Liquidity
A Current Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
IT has a worse Current ratio (0.88) than 82.95% 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.
The Quick ratio of IT (0.88) is worse than 81.82% of its industry peers.
| 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.
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.
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
The Earnings Per Share is expected to grow by 3.11% on average over the next years.
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
With a Price/Earnings ratio of 17.14, IT is valued on the expensive side.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than 71.59% of the companies in the same industry.
IT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 18.09, the valuation of IT can be described as rather expensive.
65.91% of the companies in the same industry are more expensive than IT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IT to the average of the S&P500 Index (23.13), we can say IT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
IT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IT is cheaper than 69.32% of the companies in the same industry.
IT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IT is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.96 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-0.55%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
252.28
-2.31 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change-0.97%
Ins Owners2.01%
Ins Owner Change3.17%
Market Cap18.18B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (13.73%)
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)-12.25%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)7.56%
EPS NY rev (1m)4.74%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.82 | ||
| P/FCF | 14.96 | ||
| P/OCF | 13.66 | ||
| P/B | 32.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)14.72
EY5.83%
EPS(NY)13.94
Fwd EY5.53%
FCF(TTM)16.87
FCFY6.69%
OCF(TTM)18.47
OCFY7.32%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.59
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 | 4.23 |
F-Score6
WACC8.76%
ROIC/WACC2.96
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 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 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.