GARTNER INC (IT) Stock Fundamental Analysis
USA - NYSE:IT - US3666511072 - Common Stock
253.02 USD
-0.9 (-0.35%)
253.02 USD
0 (0%)
Taking everything into account, IT scores 6 out of 10 in our fundamental rating. IT was compared to 86 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
IT had positive earnings in the past year.
In the past year IT had a positive cash flow from operations.
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
With an excellent Return On Assets value of 15.19%, IT belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
IT's Return On Equity of 82.56% is amongst the best of the industry. IT outperforms 97.67% of its industry peers.
IT's Return On Invested Capital of 20.84% is amongst the best of the industry. IT outperforms 94.19% of its industry peers.
IT had an Average Return On Invested Capital over the past 3 years of 23.67%. This is in line with the industry average of 21.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROIC | 20.84% |
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's Profit Margin of 19.71% is amongst the best of the industry. IT outperforms 95.35% of its industry peers.
In the last couple of years the Profit Margin of IT has grown nicely.
The Operating Margin of IT (18.37%) is better than 93.02% of its industry peers.
In the last couple of years the Operating Margin of IT has grown nicely.
IT has a Gross Margin of 67.96%. This is amongst the best in the industry. IT outperforms 84.88% of its industry peers.
IT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% |
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
IT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for IT has been reduced compared to 1 year ago.
The number of shares outstanding for IT has been reduced compared to 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 4.07 indicates that IT is not in any danger for bankruptcy at the moment.
The Altman-Z score of IT (4.07) is better than 66.28% of its industry peers.
IT has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
IT has a better Debt to FCF ratio (1.63) than 75.58% of its industry peers.
A Debt/Equity ratio of 1.61 is on the high side and indicates that IT has dependencies on debt financing.
The Debt to Equity ratio of IT (1.61) is worse than 73.26% 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 | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4.07 |
ROIC/WACC2.33
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.11 indicates that IT should not have too much problems paying its short term obligations.
IT has a worse Current ratio (1.11) than 73.26% of its industry peers.
A Quick Ratio of 1.11 indicates that IT should not have too much problems paying its short term obligations.
The Quick ratio of IT (1.11) is worse than 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
IT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.06%, which is quite impressive.
IT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.24% yearly.
The Revenue has been growing slightly by 5.89% 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)23.06%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%9.63%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
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 2.73% on average per year.
Based on estimates for the next years, IT will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y-10.94%
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y4.05%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.50 indicates a rather expensive valuation of IT.
IT's Price/Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 72.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of IT to the average of the S&P500 Index (27.41), we can say IT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.86, the valuation of IT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 65.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, IT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 63.95% of the companies listed in the same industry.
88.37% of the companies in the same industry are more expensive than IT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.68 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
253.02
-0.9 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change-1.12%
Ins Owners1.81%
Ins Owner Change1.68%
Market Cap19.16B
Analysts76
Price Target326.97 (29.23%)
Short Float %3.85%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)5.11%
Min EPS beat(2)3.71%
Max EPS beat(2)6.5%
EPS beat(4)4
Avg EPS beat(4)18.68%
Min EPS beat(4)1.75%
Max EPS beat(4)62.75%
EPS beat(8)8
Avg EPS beat(8)15.24%
EPS beat(12)12
Avg EPS beat(12)20.04%
EPS beat(16)16
Avg EPS beat(16)21.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-31.33%
PT rev (3m)-33.95%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 18.86 | ||
| P/S | 2.99 | ||
| P/FCF | 12.68 | ||
| P/OCF | 11.81 | ||
| P/B | 12.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.05 |
EPS(TTM)14.46
EY5.71%
EPS(NY)13.42
Fwd EY5.3%
FCF(TTM)19.96
FCFY7.89%
OCF(TTM)21.43
OCFY8.47%
SpS84.76
BVpS20.24
TBVpS-23.51
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 82.56% | ||
| ROCE | 24.91% | ||
| ROIC | 20.84% | ||
| ROICexc | 38.89% | ||
| ROICexgc | N/A | ||
| OM | 18.37% | ||
| PM (TTM) | 19.71% | ||
| GM | 67.96% | ||
| FCFM | 23.55% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 54.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.35% | ||
| Profit Quality | 119.47% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.07 |
F-Score8
WACC8.96%
ROIC/WACC2.33
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)23.06%
EPS 3Y15.05%
EPS 5Y29.24%
EPS Q2Q%9.63%
EPS Next Y-10.94%
EPS Next 2Y-2.45%
EPS Next 3Y2.73%
EPS Next 5YN/A
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%5.73%
Revenue Next Year3.9%
Revenue Next 2Y4.05%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
EBIT growth 1Y2.74%
EBIT growth 3Y8.21%
EBIT growth 5Y25.22%
EBIT Next Year19.67%
EBIT Next 3Y11.97%
EBIT Next 5YN/A
FCF growth 1Y50.85%
FCF growth 3Y3.36%
FCF growth 5Y27.14%
OCF growth 1Y45.12%
OCF growth 3Y4.2%
OCF growth 5Y21.3%