GARTNER INC (IT) Fundamental Analysis & Valuation
NYSE:IT • US3666511072
166.39 USD
-2.61 (-1.54%)
At close: Mar 9, 2026
166.39 USD
0 (0%)
After Hours: 3/9/2026, 4:46:03 PM
This IT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall IT gets a fundamental rating of 5 out of 10. We evaluated IT against 87 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 decent growth rate and is not valued too expensively.
1. IT Profitability Analysis
1.1 Basic Checks
- In the past year IT was profitable.
- In the past year IT had a positive cash flow from operations.
- IT had positive earnings in each of the past 5 years.
- IT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IT has a Return On Assets of 9.02%. This is amongst the best in the industry. IT outperforms 82.76% of its industry peers.
- The Return On Equity of IT (227.95%) is better than 98.85% of its industry peers.
- With an excellent Return On Invested Capital value of 24.37%, IT belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
- IT had an Average Return On Invested Capital over the past 3 years of 22.89%. This is significantly above the industry average of 10.86%.
- The last Return On Invested Capital (24.37%) for IT is above the 3 year average (22.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 227.95% | ||
| ROIC | 24.37% |
ROA(3y)11.66%
ROA(5y)11.35%
ROE(3y)149.95%
ROE(5y)203.66%
ROIC(3y)22.89%
ROIC(5y)22.72%
1.3 Margins
- IT's Profit Margin of 11.22% is amongst the best of the industry. IT outperforms 82.76% of its industry peers.
- IT's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 18.17%, IT belongs to the best of the industry, outperforming 91.95% 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 (68.39%) than 89.66% 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 | 18.17% | ||
| PM (TTM) | 11.22% | ||
| GM | 68.39% |
OM growth 3Y-5.08%
OM growth 5Y8.45%
PM growth 3Y-8.71%
PM growth 5Y11.52%
GM growth 3Y-0.33%
GM growth 5Y0.36%
2. IT Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IT is creating value.
- The number of shares outstanding for IT has been reduced compared to 1 year ago.
- Compared to 5 years ago, IT has less shares outstanding
- Compared to 1 year ago, IT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.39 indicates that IT is not in any danger for bankruptcy at the moment.
- IT's Altman-Z score of 3.39 is fine compared to the rest of the industry. IT outperforms 68.97% of its industry peers.
- IT has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as IT would need 2.54 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.54, IT is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
- IT has a Debt/Equity ratio of 9.30. This is a high value indicating a heavy dependency on external financing.
- IT's Debt to Equity ratio of 9.30 is on the low side compared to the rest of the industry. IT is outperformed by 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.3 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 3.39 |
ROIC/WACC2.91
WACC8.38%
2.3 Liquidity
- IT has a Current Ratio of 1.00. 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 1.00 is on the low side compared to the rest of the industry. IT is outperformed by 77.01% of its industry peers.
- IT has a Quick Ratio of 1.00. 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 worse Quick ratio (1.00) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. IT Growth Analysis
3.1 Past
- IT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.31%.
- Measured over the past years, IT shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.94% on average per year.
- IT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
- The Revenue has been growing by 9.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.31%
EPS 3Y5.37%
EPS 5Y21.94%
EPS Q2Q%-27.71%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y5.87%
Revenue growth 5Y9.65%
Sales Q2Q%2.21%
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 6.58% on average per year.
- The Revenue is expected to grow by 1.67% on average over the next years.
EPS Next Y5.53%
EPS Next 2Y8.16%
EPS Next 3Y8.4%
EPS Next 5Y6.58%
Revenue Next Year0.78%
Revenue Next 2Y2.94%
Revenue Next 3Y3.76%
Revenue Next 5Y1.67%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. IT Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.60 indicates a correct valuation of IT.
- 74.71% 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 26.29, IT is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of IT.
- IT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 74.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of IT to the average of the S&P500 Index (24.60), we can say IT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than 77.01% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IT is valued cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)0.57
EPS Next 2Y8.16%
EPS Next 3Y8.4%
5. IT Dividend Analysis
5.1 Amount
- IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
IT Fundamentals: All Metrics, Ratios and Statistics
166.39
-2.61 (-1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners106.88%
Inst Owner Change3.2%
Ins Owners2%
Ins Owner Change2.94%
Market Cap11.99B
Revenue(TTM)6.50B
Net Income(TTM)729.23M
Analysts74.17
Price Target208.48 (25.3%)
Short Float %9.61%
Short Ratio4.39
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)9.75%
Min EPS beat(2)9.09%
Max EPS beat(2)10.41%
EPS beat(4)4
Avg EPS beat(4)7.43%
Min EPS beat(4)3.71%
Max EPS beat(4)10.41%
EPS beat(8)8
Avg EPS beat(8)13.75%
EPS beat(12)12
Avg EPS beat(12)15.95%
EPS beat(16)16
Avg EPS beat(16)19.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-2.18%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-1.66%
PT rev (1m)-26.63%
PT rev (3m)-27.47%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-2.72%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.94 | ||
| P/S | 1.85 | ||
| P/FCF | 10.21 | ||
| P/OCF | 9.29 | ||
| P/B | 37.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.73 |
EPS(TTM)13.21
EY7.94%
EPS(NY)13.94
Fwd EY8.38%
FCF(TTM)16.3
FCFY9.8%
OCF(TTM)17.9
OCFY10.76%
SpS90.14
BVpS4.44
TBVpS-38.25
PEG (NY)2.28
PEG (5Y)0.57
Graham Number36.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 227.95% | ||
| ROCE | 29.41% | ||
| ROIC | 24.37% | ||
| ROICexc | 42.69% | ||
| ROICexgc | N/A | ||
| OM | 18.17% | ||
| PM (TTM) | 11.22% | ||
| GM | 68.39% | ||
| FCFM | 18.09% |
ROA(3y)11.66%
ROA(5y)11.35%
ROE(3y)149.95%
ROE(5y)203.66%
ROIC(3y)22.89%
ROIC(5y)22.72%
ROICexc(3y)37.89%
ROICexc(5y)33.81%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)27.63%
ROCE(5y)27.43%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y10%
ROICexc growth 5Y30.57%
OM growth 3Y-5.08%
OM growth 5Y8.45%
PM growth 3Y-8.71%
PM growth 5Y11.52%
GM growth 3Y-0.33%
GM growth 5Y0.36%
F-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.3 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 57.48% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 11.86 | ||
| Cash Conversion | 93.45% | ||
| Profit Quality | 161.16% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.39 |
F-Score6
WACC8.38%
ROIC/WACC2.91
Cap/Depr(3y)53.91%
Cap/Depr(5y)49.24%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.68%
Profit Quality(3y)130.26%
Profit Quality(5y)134.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.31%
EPS 3Y5.37%
EPS 5Y21.94%
EPS Q2Q%-27.71%
EPS Next Y5.53%
EPS Next 2Y8.16%
EPS Next 3Y8.4%
EPS Next 5Y6.58%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y5.87%
Revenue growth 5Y9.65%
Sales Q2Q%2.21%
Revenue Next Year0.78%
Revenue Next 2Y2.94%
Revenue Next 3Y3.76%
Revenue Next 5Y1.67%
EBIT growth 1Y1.07%
EBIT growth 3Y0.49%
EBIT growth 5Y18.92%
EBIT Next Year18.74%
EBIT Next 3Y9.1%
EBIT Next 5Y4.4%
FCF growth 1Y-15.03%
FCF growth 3Y5.77%
FCF growth 5Y7.48%
OCF growth 1Y-13.1%
OCF growth 3Y5.42%
OCF growth 5Y7.39%
GARTNER INC / IT FAQ
Can you provide the ChartMill fundamental rating for GARTNER INC?
ChartMill assigns a fundamental rating of 5 / 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 grow by 5.53% in the next year.