ScoreWhy is Gen Digital Inc. ?
1
High Management Efficiency with a high ROCE of 30.18%
2
Healthy long term growth as Operating profit has grown by an annual rate 18.55%
3
Flat results in Jun 25
- ROCE(HY) Lowest at 27.54%
- DEBTORS TURNOVER RATIO(HY) Lowest at 17.72 times
- INTEREST(Q) Highest at USD 158 MM
4
With ROCE of 16.99%, it has a attractive valuation with a 2.67 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -12.87%, its profits have fallen by -36.1%
5
High Institutional Holdings at 93.22%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.27% over the previous quarter.
6
Below par performance in long term as well as near term
- Along with generating -12.87% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Gen Digital Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gen Digital Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Gen Digital Inc.
-12.26%
0.33
27.55%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.49%
EBIT Growth (5y)
18.55%
EBIT to Interest (avg)
4.76
Debt to EBITDA (avg)
3.32
Net Debt to Equity (avg)
3.20
Sales to Capital Employed (avg)
0.34
Tax Ratio
37.51%
Dividend Payout Ratio
48.52%
Pledged Shares
0
Institutional Holding
93.22%
ROCE (avg)
30.18%
ROE (avg)
46.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
8.02
EV to EBIT
15.71
EV to EBITDA
12.49
EV to Capital Employed
2.67
EV to Sales
6.47
PEG Ratio
NA
Dividend Yield
182.94%
ROCE (Latest)
16.99%
ROE (Latest)
28.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NET SALES(Q)
Highest at USD 1,257 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 57.76%
RAW MATERIAL COST(Y)
Fallen by 1.86% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 339.75 %
OPERATING PROFIT(Q)
Highest at USD 579 MM
PRE-TAX PROFIT(Q)
Highest at USD 299 MM
-10What is not working for the Company
ROCE(HY)
Lowest at 27.54%
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.72 times
INTEREST(Q)
Highest at USD 158 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 46.06 %
NET PROFIT(Q)
Lowest at USD 134.55 MM
EPS(Q)
Lowest at USD 0.22
Here's what is working for Gen Digital Inc.
Net Sales
Highest at USD 1,257 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 1,257 MM has Grown at 30.26%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 579 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 299 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Lowest at 339.75 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 57.76%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.86% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 123 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Gen Digital Inc.
Interest
At USD 158 MM has Grown at 12.86%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 158 MM
in the last five periods and Increased by 12.86% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 46.06 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at USD 134.55 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
Fallen at -25.12%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.22
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 17.72 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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