GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
221.83 USD
-8.84 (-3.83%)
224.02 USD
+2.19 (+0.99%)
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 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.
- 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 Return On Invested Capital of 25.97%. This is amongst the best in the industry. IT outperforms 95.45% 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 29.06%.
- 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.
- With an excellent Operating Margin value of 18.07%, IT belongs to the best of the industry, outperforming 92.05% of the companies in the same industry.
- In the last couple of years the Operating Margin of IT has grown nicely.
- IT has a Gross Margin of 68.17%. This is amongst the best in the industry. IT outperforms 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.
- 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
- IT has an Altman-Z score of 4.04. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
- IT's Altman-Z score of 4.04 is fine compared to the rest of the industry. IT outperforms 67.05% of its industry peers.
- 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.
- IT has a Debt to FCF ratio of 2.03. This is in the better half of the industry: IT outperforms 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.
- 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.
- 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 | 4.04 |
ROIC/WACC2.92
WACC8.91%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
- IT has a Current ratio of 0.88. This is amonst the worse of the industry: IT underperforms 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.
- 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 5.24% in the past year.
- 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 3.20% 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-6.5%
EPS Next 2Y-0.47%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.68%
Revenue Next 3Y4.62%
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
- The Price/Earnings ratio is 15.07, which indicates a correct valuation of IT.
- Compared to the rest of the industry, the Price/Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 75.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of IT to the average of the S&P500 Index (26.94), we can say IT is valued slightly cheaper.
- IT is valuated correctly with a Price/Forward Earnings ratio of 15.88.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 70.45% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of IT to the average of the S&P500 Index (23.94), we can say IT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 15.88 |
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 71.59% of the companies listed in the same industry.
- 81.82% 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 | 13.15 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
- The excellent profitability rating of IT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-0.47%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
- No dividends for IT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
221.83
-8.84 (-3.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners106.88%
Inst Owner Change0.24%
Ins Owners2%
Ins Owner Change3.18%
Market Cap15.99B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target282.58 (27.39%)
Short Float %6.49%
Short Ratio4.87
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)-1.69%
PT rev (3m)-8.42%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)8.2%
EPS NY rev (1m)0.1%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 15.88 | ||
| P/S | 2.48 | ||
| P/FCF | 13.15 | ||
| P/OCF | 12.01 | ||
| P/B | 28.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)14.72
EY6.64%
EPS(NY)13.97
Fwd EY6.3%
FCF(TTM)16.87
FCFY7.6%
OCF(TTM)18.47
OCFY8.33%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.52
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 | 4.04 |
F-Score6
WACC8.91%
ROIC/WACC2.92
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-6.5%
EPS Next 2Y-0.47%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.8%
Revenue growth 5Y8.1%
Sales Q2Q%2.68%
Revenue Next Year4.01%
Revenue Next 2Y3.68%
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 -6.5% in the next year.