GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
230.67 USD
+0.29 (+0.13%)
230.67 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. While IT belongs to the best of the industry regarding profitability, 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.
- 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
- Looking at the Return On Assets, with a value of 12.22%, IT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- IT has a Return On Equity of 159.13%. This is amongst the best in the industry. IT outperforms 98.86% of its industry peers.
- IT has a better Return On Invested Capital (25.97%) than 96.59% 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 28.99%.
- The 3 year average ROIC (23.67%) for IT is below the current ROIC(25.97%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 13.71%, IT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- IT's Profit Margin has improved in the last couple of years.
- IT has a Operating Margin of 18.07%. This is amongst the best in the industry. IT outperforms 92.05% of its industry peers.
- IT's Operating Margin has improved in the last couple of years.
- The Gross Margin of IT (68.17%) is better than 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.
- 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 4.09 indicates that IT is not in any danger for bankruptcy at the moment.
- IT has a Altman-Z score of 4.09. This is in the better half of the industry: IT outperforms 67.05% 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 better Debt to FCF ratio (2.03) than 71.59% 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.
- Looking at the Debt to Equity ratio, with a value of 4.42, IT is doing worse than 81.82% of the companies in the same industry.
- 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/WACC2.96
WACC8.78%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that IT may have some problems paying 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 84.09% of its industry peers.
- A Quick Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
- IT's Quick ratio of 0.88 is on the low side compared to the rest of the industry. IT is outperformed by 82.95% of its industry peers.
| 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.
- IT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.24% yearly.
- IT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.24%.
- 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 3.11% yearly.
- IT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
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
- The Price/Earnings ratio is 15.67, which indicates a correct valuation of IT.
- Based on the Price/Earnings ratio, IT is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of IT to the average of the S&P500 Index (27.47), we can say IT is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.54, the valuation of IT can be described as correct.
- 70.45% 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 (24.26), we can say IT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than the industry average as 70.45% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, IT is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| 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% |
230.67
+0.29 (+0.13%)
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 Cap16.63B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (24.38%)
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 | 15.67 | ||
| Fwd PE | 16.54 | ||
| P/S | 2.57 | ||
| P/FCF | 13.67 | ||
| P/OCF | 12.49 | ||
| P/B | 29.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.87 |
EPS(TTM)14.72
EY6.38%
EPS(NY)13.94
Fwd EY6.05%
FCF(TTM)16.87
FCFY7.31%
OCF(TTM)18.47
OCFY8.01%
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
WACC8.78%
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 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.