GARTNER INC (IT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IT - US3666511072 - Common Stock
249.57 USD
-1.72 (-0.68%)
249.57 USD
0 (0%)
Taking everything into account, IT scores 6 out of 10 in our fundamental rating. IT was compared to 85 industry peers in the IT Services industry. IT has an excellent profitability rating, but there are some minor concerns on its financial health. IT is not valued too expensively and it also shows a decent growth rate.
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.
IT had positive earnings in each of the past 5 years.
Each year in the past 5 years IT had a positive operating cash flow.
1.2 Ratios
IT's Return On Assets of 12.22% is amongst the best of the industry. IT outperforms 90.59% of its industry peers.
With an excellent Return On Equity value of 159.13%, IT belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.97%, IT belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
IT had an Average Return On Invested Capital over the past 3 years of 23.67%. This is significantly below the industry average of 29.59%.
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
With an excellent Profit Margin value of 13.71%, IT belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
In the last couple of years the Profit Margin of IT has grown nicely.
IT has a better Operating Margin (18.07%) than 91.76% of its industry peers.
IT's Operating Margin has improved in the last couple of years.
IT has a better Gross Margin (68.17%) than 88.24% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.23 indicates that IT is not in any danger for bankruptcy at the moment.
IT has a better Altman-Z score (4.23) than 67.06% 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.
The Debt to FCF ratio of IT (2.03) is better than 71.76% of its industry peers.
IT has a Debt/Equity ratio of 4.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.42, IT is doing worse than 85.88% of the companies in the same industry.
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 | 4.23 |
ROIC/WACC3.05
WACC8.51%
2.3 Liquidity
IT has a Current 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 Current ratio of 0.88. This is amonst the worse of the industry: IT underperforms 85.88% of its industry peers.
A Quick Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
IT has a worse Quick ratio (0.88) than 84.71% 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.
Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last 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 2.83% yearly.
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-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
EPS Next 5YN/A
Revenue Next Year4%
Revenue Next 2Y3.67%
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 16.95, which indicates a correct valuation of IT.
Based on the Price/Earnings ratio, IT is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.26, IT is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.01, which indicates a rather expensive current valuation of IT.
IT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IT is cheaper than 67.06% of the companies in the same industry.
IT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
IT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IT is cheaper than 68.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IT is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 13.97 |
4.3 Compensation for Growth
IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
5. Dividend
5.1 Amount
IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
249.57
-1.72 (-0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change-0.97%
Ins Owners2.01%
Ins Owner Change3.18%
Market Cap17.99B
Revenue(TTM)6.46B
Net Income(TTM)885.65M
Analysts73.91
Price Target287.42 (15.17%)
Short Float %7.32%
Short Ratio5.19
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)-5.35%
PT rev (3m)-12.1%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)7.07%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 18.01 | ||
| P/S | 2.78 | ||
| P/FCF | 14.79 | ||
| P/OCF | 13.51 | ||
| P/B | 32.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.97 |
EPS(TTM)14.72
EY5.9%
EPS(NY)13.86
Fwd EY5.55%
FCF(TTM)16.87
FCFY6.76%
OCF(TTM)18.47
OCFY7.4%
SpS89.62
BVpS7.72
TBVpS-35.94
PEG (NY)N/A
PEG (5Y)0.58
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 | 4.23 |
F-Score6
WACC8.51%
ROIC/WACC3.05
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-6.85%
EPS Next 2Y-0.86%
EPS Next 3Y2.83%
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 Year23.38%
EBIT Next 3Y10.25%
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 of GARTNER INC (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 valuation of GARTNER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GARTNER INC (IT) is 16.95 and the Price/Book (PB) ratio is 32.32.