Bedrijfsoverzicht
Gen Digital Inc. is a technology company dedicated to providing comprehensive cyber safety solutions tailored for individuals, families, and small businesses, offering a suite of products focused on security management, identity protection, online privacy, and performance optimization. The firm operates within the Technology sector, specifically the Software - Infrastructure industry, positioning it as a provider of essential digital infrastructure and security tools in an increasingly connected global economy. As of the latest data, the company commands a substantial market capitalization of $11.03B and generates annual revenue totaling $4.73B, supported by a workforce of 3,500 employees. These financial dimensions indicate that Gen Digital Inc. holds a significant position within its industry, reflecting a large-scale operation capable of sustaining high levels of revenue generation and maintaining a robust corporate structure to support its extensive product portfolio under brands such as Norton, Avast, and LifeLock.
Financiële gezondheid
The company reports trailing twelve-month revenue of $4.73B with a net income of $603.00M and an EBITDA of $2.01B, revealing a cost structure where operating expenses and taxes consume approximately $4.127B of the gross revenue before reaching the bottom line. The entity maintains a free cash flow of $1.32B, which signifies strong financial flexibility allowing for potential capital expenditures, debt repayment, or strategic acquisitions without immediate reliance on external financing. Profitability analysis shows a gross margin of 78.8%, indicating efficient production and pricing power in its software sales, while the operating margin of 35.8% and profit margin of 12.8% demonstrate the company's ability to control overhead costs and deliver returns to shareholders after all expenses. Regarding leverage, Gen Digital Inc. holds $616.00M in cash against total debt of $8.47B, resulting in a debt-to-equity ratio of 363.38, which characterizes the balance sheet as significantly leveraged rather than conservative. The current ratio stands at 0.47, suggesting that short-term liquid assets are insufficient to cover current liabilities, pointing to a reliance on cash flow generation or long-term financing structures to meet immediate obligations. Management effectiveness is further illuminated by a return on equity of 26.9% and a return on assets of 7.2%, metrics that highlight a highly efficient utilization of shareholder capital despite the heavy debt load.
Waarderingsbeoordeling
Valuation metrics for Gen Digital Inc. include a trailing P/E ratio of 18.44 and a forward P/E of 6.23, implying that the market expects a significant expansion in earnings per share over the coming year to justify the current multiple compression. The price-to-book ratio is 4.65, indicating that the market values the company at a substantial premium over its tangible book value, likely reflecting the intangible value of its software assets, brand equity, and recurring revenue streams. Alternative valuation measures such as a price-to-sales ratio of 2.33 and an EV/EBITDA of 9.29 suggest that the stock is priced relative to its sales growth potential and enterprise earnings power, providing a different perspective on value than traditional multiples. The stock has traded between a 52-week low of $17.85 and a 52-week high of $32.22, and without the current share price explicitly provided in the facts, the valuation context remains anchored to these historical trading bounds which define the recent volatility range. With a beta of 1.15, the stock exhibits price volatility that is 15% higher than the broader market, indicating that price movements will likely be more pronounced during periods of market stress or rally compared to low-beta defensive sectors.
Growth & Income
Gen Digital Inc. demonstrates robust expansion with revenue growth of 25.8% year-over-year and earnings growth of 20.1% year-over-year, indicating that while earnings are growing slightly slower than revenue, the company is successfully leveraging its scale to improve bottom-line profitability at a rapid pace. As a dividend payer, the company offers a dividend yield of 2.8% with a payout ratio of 51.5%, suggesting that the dividend distribution is sustainable given the current earnings generation and the high level of retained earnings available for reinvestment. The substantial gap between free cash flow of $1.32B and the implied dividend payments further supports the capacity to maintain or potentially increase the payout over time without compromising operational liquidity or growth initiatives. Overall, the company presents a profile combining high-growth infrastructure characteristics with a mature income component, offering exposure to the digital security market while providing a yield that exceeds the typical average for high-growth technology peers.