Company Overview
Gen Digital Inc. operates as a provider of cyber safety solutions designed for individuals, families, and small businesses, offering security and performance management, identity protection, online privacy, and a technology platform under its Norton, Avast, and LifeLock brands. The company functions within the technology and cybersecurity sector, though specific sector and industry classifications are not currently disclosed in the available data. This entity employs approximately 3,500 personnel to support its global operations and product suite. The reported revenue of $4.73 billion and a market capitalization that is not publicly disclosed in the current dataset indicate a significant operational scale, suggesting the company holds a substantial position in the market for digital security tools despite the lack of a defined market cap figure for valuation context.
Financial Health
The company reported total revenue of $4.73 billion over the trailing twelve months, with net income of $603.00 million and EBITDA reaching $2.01 billion. The substantial gap between the $4.73 billion in revenue and the $603.00 million in net income reveals a robust cost structure where operating expenses, while significant, allow for a healthy bottom line, while the EBITDA of $2.01 billion highlights strong operational cash generation before interest, taxes, depreciation, and amortization. Free cash flow stands at $1.32 billion, which provides the organization with considerable financial flexibility to fund research and development, manage capital expenditures, or service its debt obligations without immediate external financing needs. Profitability is evidenced by a gross margin of 78.8%, an operating margin of 35.8%, and a profit margin of 12.8%, indicating that the company retains a high portion of sales revenue as gross profit, maintains efficient operational controls, and delivers solid earnings relative to total sales. On the balance sheet, the company holds $616.00 million in cash against total debt of $8.47 billion, resulting in a debt-to-equity ratio of 363.38, which characterizes a highly leveraged financial position where debt obligations significantly exceed equity and liquid cash reserves. Liquidity constraints are further highlighted by a current ratio of 0.47, indicating that current assets are less than half of current liabilities, which suggests limited short-term liquidity and a reliance on refinancing or long-term asset conversion to meet immediate obligations. Return on equity is recorded at 26.9% and return on assets at 7.2%, metrics that reveal management is generating high returns on shareholder equity but are utilizing a large asset base with lower efficiency relative to total assets.
Valuation Assessment
Valuation multiples for Gen Digital Inc. include a trailing P/E ratio and forward P/E that are not available in the current data, preventing a direct comparison of expected earnings trajectory based on these specific metrics. The price-to-book ratio is 0.10, which indicates that the market values the company at a fraction of its book value, suggesting a significant discount relative to the net asset value rather than a market premium. Alternative valuation metrics such as the price-to-sales ratio and EV/EBITDA are not disclosed in the available facts, limiting the ability to suggest what these metrics imply about relative value compared to peers. The stock has exhibited significant volatility, with a 52-week high of $12.40 and a 52-week low of $0.40. Without a specific current share price provided in the source text, the exact percentage position relative to the 52-week high cannot be calculated, but the range demonstrates a wide trading band where the price has fluctuated dramatically over the past year. The beta value is 1.09, meaning the stock price tends to be slightly more volatile than the broader market, moving 9% more than the market index on average during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is recorded at 25.8%, while earnings growth year-over-year stands at 20.1%, indicating that earnings are growing slightly slower than revenue, which implies that the company may be facing increasing costs, margin compression, or one-time factors affecting net income as it expands its top line. The company does not pay a dividend, as indicated by the absence of a dividend yield and payout ratio in the available data, meaning the organization reinvests its earnings into growth initiatives, debt reduction, or operational expansion rather than distributing cash to shareholders. This growth-focused capital allocation strategy is consistent with companies in the cybersecurity sector that prioritize scaling their technology platforms and expanding their customer base in the face of rising digital threats. The overall growth and income profile presents a high-growth trajectory supported by substantial revenue expansion, though the absence of dividend income and high leverage requires investors to weigh capital appreciation potential against balance sheet risk.