GARTNER INC (IT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:IT • US3666511072
208.12 USD
-1.49 (-0.71%)
Last: Feb 2, 2026, 10:51 AM
Overall IT gets a fundamental rating of 6 out of 10. We evaluated IT against 88 industry peers in the IT Services industry. IT scores excellent on profitability, 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
- IT had positive earnings in the past year.
- IT had a positive operating cash flow in the past year.
- In the past 5 years IT has always been profitable.
- In the past 5 years IT always reported a positive cash flow from operatings.
1.2 Ratios
- IT's Return On Assets of 12.22% is amongst the best of the industry. IT outperforms 90.91% of its industry peers.
- IT has a Return On Equity of 159.13%. This is amongst the best in the industry. IT outperforms 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.
- Measured over the past 3 years, the Average Return On Invested Capital for IT is significantly below the industry average of 29.07%.
- 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 86.36% of the companies in the same industry.
- 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.
- IT's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 68.17%, IT belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
- 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%
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.
- Compared to 1 year ago, IT has an improved debt to assets ratio.
2.2 Solvency
- IT has an Altman-Z score of 3.96. This indicates that IT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.96, IT is in the better half of the industry, outperforming 71.59% of the companies in the same industry.
- 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's Debt to FCF ratio of 2.03 is fine compared to the rest 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.
- 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 | 4.42 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 3.96 |
ROIC/WACC2.87
WACC9.04%
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.
- The Current ratio of IT (0.88) is worse than 84.09% of its industry peers.
- A Quick Ratio of 0.88 indicates that IT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, IT is doing worse than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- IT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.92%, 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.
- Looking at the last year, IT shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
- The Revenue has been growing by 8.10% on average over the past years. This is quite good.
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 4.63% on average per year.
EPS Next Y-6.5%
EPS Next 2Y-0.47%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y3.68%
Revenue Next 3Y4.63%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 14.14 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 76.14% of the companies listed in the same industry.
- IT is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 14.90, IT is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IT indicates a somewhat cheap valuation: IT is cheaper than 72.73% of the companies listed in the same industry.
- IT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IT is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, IT is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
- IT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-0.47%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
- IT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.