Over the last year, Gen Digital logged a negative performance of -33.9%, with a high of $27.33 and a low of $15.52. During this time, the stock trailed the S&P 500 index by -26.0%. As of April 2023, the company's 50-day average price was $18.99. Gen Digital Inc. provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Based in Tempe, AZ, the Large-Cap Technology company has 2,700 full time employees. Gen Digital has provided a 2.9% dividend yield over the last 12 months.
Stable Revenues With Decreasing Reinvestment in the Business:
| 2020-03-31 | 2021-03-31 | 2022-03-31 | |
|---|---|---|---|
| Revenue | $2,490,000 | $2,551,000 | $2,796,000 |
| Operating Margins | 24.9% | 41.4% | 37.0% |
| Net Income | $3,887,000 | $554,000 | $836,000 |
| Net Margins | 156.1% | 21.72% | 29.9% |
| Earnings Per Share | $6.05 | $0.92 | $0.9 |
| Diluted Shares | 643,000 | 600,000 | 639,129 |
| Free Cash Flow | -$950,000 | $700,000 | $968,000 |
| Capital Expenditures | -$89,000 | -$6,000 | -$6,000 |
| Net Current Assets | -$4,646,000 | -$5,323,000 | -$4,776,000 |
| Current Ratio | 1.17 | 0.72 | 0.74 |
| Long Term Debt | $3,465,000 | $3,288,000 | $2,736,000 |
| Net Debt / EBITDA | 2.01 | 2.21 | 1.58 |
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
Gen Digital has a trailing twelve month P/E ratio of 21.1, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $2.04, the company has a forward P/E ratio of 9.3. The compound average growth rate of the company's historical and projected earnings per share is -19.5%. On this basis, the company's PEG ratio is -1.08, which indicates that its shares are overpriced. Gen Digital is also overpriced compared to its book value, since its P/B ratio of 8.7 is higher than the sector average of 6.23. The company's shares are currently 61.6% above their Graham number. Despite its elevated P/B ratio, Gen Digital's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Analysts Give Gen Digital an Average Rating of Buy:
There are 5 analysts covering Gen Digital, with target prices ranging from $24.9 to $29.0 per share, for an average of $25.98. As of April 2023, the company is trading -26.9% away from its average target price, implying there is an analyst consensus of strong upside potential. On average, analysts recommend to buy Gen Digital.
With a 2.9% short interest, Gen Digital has an average amount of shares sold short. Institutions own 86.3% of the company's shares, and it has a large amount of insider shareholders because 8.67% are owned by corporate insiders. Overall, the company's top shareholder is the Vanguard Group, Inc., whose 11% stake in the company is worth $1,220,773,353.
