Gen Digital Inc. (NLOK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AppLovin Corp.

Okta, Inc.

Manhattan Associates, Inc.

Gen Digital Inc.

Aspen Technology, Inc.

Snap, Inc.

Unity Software, Inc.

Bill Holdings, Inc.

Trimble, Inc.

Bentley Systems, Inc.

Dynatrace, Inc.

Why is Gen Digital Inc. ?

High Management Efficiency with a high ROCE of 30.18%

Healthy long term growth as Operating profit has grown by an annual rate 13.09%

Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) Highest at 416.06
PRE-TAX PROFIT(Q) Highest at USD 340 MM
DEBT-EQUITY RATIO (HY) Lowest at 333.96 %

With ROCE of 17.44%, it has a fair valuation with a 2.00 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 -24.57%, its profits have risen by 1.1% ; the PEG ratio of the company is 18.2

High Institutional Holdings at 90.75%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -24.57% 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 Report

Verdict Report

How 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gen Digital Inc.

-24.57%

-0.46

30.95%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.65%

EBIT Growth (5y)

13.09%

EBIT to Interest (avg)

4.76

Debt to EBITDA (avg)

3.32

Net Debt to Equity (avg)

3.20

Sales to Capital Employed (avg)

0.37

Tax Ratio

37.51%

Dividend Payout Ratio

48.52%

Pledged Shares

Institutional Holding

90.75%

ROCE (avg)

30.18%

ROE (avg)

46.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.35

EV to EBIT

11.48

EV to EBITDA

9.04

EV to Capital Employed

2.00

EV to Sales

4.29

PEG Ratio

18.24

Dividend Yield

266.60%

ROCE (Latest)

17.44%

ROE (Latest)

28.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 416.06

PRE-TAX PROFIT(Q)

Highest at USD 340 MM

DEBT-EQUITY RATIO (HY)

Lowest at 333.96 %

NET PROFIT(Q)

Highest at USD 211.26 MM

EPS(Q)

Highest at USD 0.31

-3What is not working for the Company

ROCE(HY)

Lowest at 26.9%

OPERATING PROFIT MARGIN(Q)

Lowest at 45.97 %

Here's what is working for Gen Digital Inc.

Interest Coverage Ratio

Highest at 416.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at USD 340 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 340 MM has Grown at 58.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 211.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.31

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 333.96 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 126 MM

in the last five periods

MOJO 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.

Operating Profit Margin

Lowest at 45.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales