GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
238.93 USD
+3.14 (+1.33%)
238.93 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IT. IT was compared to 88 industry peers in the IT Services industry. While IT has a great profitability rating, 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.
- IT had a positive operating cash flow in the past year.
- IT had positive earnings in each of the past 5 years.
- In the past 5 years IT always reported a positive cash flow from operatings.
1.2 Ratios
- IT's Return On Assets of 12.22% is amongst the best of the industry. IT outperforms 90.91% of its industry peers.
- 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.
- The Return On Invested Capital of IT (25.97%) is better 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 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
- 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.
- Looking at the Operating Margin, with a value of 18.07%, IT belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
- IT's Operating Margin has improved in the last couple of years.
- IT has a better Gross Margin (68.17%) than 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IT is creating value.
- Compared to 1 year ago, IT has less shares outstanding
- Compared to 5 years ago, IT has less shares outstanding
- 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.
- With a decent Altman-Z score value of 4.13, IT is doing good in the industry, outperforming 67.05% of the companies in the same industry.
- 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.
- A Debt/Equity ratio of 4.42 is on the high side and indicates that IT has dependencies on debt financing.
- IT's Debt to Equity ratio of 4.42 is on the low side compared to the rest of the industry. IT is outperformed by 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 | 4.13 |
ROIC/WACC2.97
WACC8.74%
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 84.09% 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.
- IT has a Quick ratio of 0.88. This is amonst the worse of the industry: IT underperforms 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.
- 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.
- The Revenue has been growing by 8.10% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
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.
- 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 16.23, IT is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 73.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, IT is valued a bit cheaper.
- IT is valuated rather expensively with a Price/Forward Earnings ratio of 17.13.
- IT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 68.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, IT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
- 71.59% of the companies in the same industry are more expensive than IT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IT is valued cheaper than 80.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
- The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
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% |
238.93
+3.14 (+1.33%)
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 Cap17.22B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target286.91 (20.08%)
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 | 16.23 | ||
| Fwd PE | 17.13 | ||
| P/S | 2.67 | ||
| P/FCF | 14.16 | ||
| P/OCF | 12.94 | ||
| P/B | 30.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)14.72
EY6.16%
EPS(NY)13.94
Fwd EY5.84%
FCF(TTM)16.87
FCFY7.06%
OCF(TTM)18.47
OCFY7.73%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.56
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 | 4.13 |
F-Score6
WACC8.74%
ROIC/WACC2.97
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.