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 scores excellent on profitability, but there are some minor concerns on its financial health. IT has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

IT has a better Return On Assets (12.22%) than 90.91% of its industry peers.
The Return On Equity of IT (159.13%) is better 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 last Return On Invested Capital (25.97%) for IT is above the 3 year average (23.67%), which is a sign of increasing profitability.

		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

With an excellent Profit Margin value of 13.71%, IT belongs to the best 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.
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.
The Gross Margin of IT (68.17%) is better 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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
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 4.14. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
IT's Altman-Z score of 4.14 is fine compared to the rest of the industry. IT outperforms 68.18% 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 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.
With a Debt to Equity ratio value of 4.42, IT is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
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	4.14

ROIC/WACC2.94

WACC8.83%

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 worse Quick ratio (0.88) than 82.95% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.88
Quick Ratio	0.88

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
IT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.

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

Based on estimates for the next years, IT will show a small growth in Earnings Per Share. The EPS will grow by 3.20% on average per year.
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-6.5%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

IT is valuated correctly with a Price/Earnings ratio of 15.74.
IT's Price/Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 73.86% of the companies in the same industry.
IT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 16.59, which indicates a correct valuation of IT.
Based on the Price/Forward Earnings ratio, IT is valued a bit cheaper than the industry average as 69.32% of the companies are valued more expensively.
IT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	15.74
Fwd PE	16.59

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IT indicates a rather cheap valuation: IT is cheaper than 80.68% of the companies listed in the same industry.