Gen Digital Inc. (GEN)
Services-Prepackaged Software · Services-Prepackaged Software · NASDAQ
$27.54
-0.36%
Investingg Score
63.4 / 100
Hold
Business overview
- Gross margin of 78.5 percent reflects robust pricing power in prepackaged software.
- Operating margin of 42.4 percent highlights efficient core business operations.
- FCF margin of 30.5 percent demonstrates strong cash conversion from revenues.
These high margins indicate a profitable software business with efficient cash generation capabilities, though future maintenance of these levels remains uncertain.
Financial health
- Balance sheet score of 18 highlights significant structural constraints within the company's financial foundation.
- Free cash flow yield of 9.3 percent indicates strong cash generation relative to the current market capitalization of $16,468,920,000.
While cash generation is strong, the low balance sheet score introduces notable financial uncertainty regarding debt or capital structure obligations.
- Gross Margin
- 78.5%
- Operating Margin
- 42.4%
- Current Ratio
- 0.4x
- Debt / Equity
- 3.07
- Free Cash Flow (TTM)
- $1.5B
- Interest Coverage
- Data unavailable
Valuation
- P/E ratio is currently 24.36.
- Forward P/E ratio drops to 9.03.
- EV to EBITDA ratio is 10.68 alongside a price-to-sales ratio of 3.26.
These valuation metrics suggest the stock may be reasonably priced relative to its expected future earnings, provided forward estimates are met.
- P/E (TTM)
- 24.4x
- Forward P/E
- 9.0x
- Price / Sales
- 3.3x
- EV / EBITDA
- 10.7x
- FCF Yield
- 9.3%
Key risks
- Low balance sheet score of 18 indicates underlying financial risks.
- Uncertainty regarding the sustainability of current year-over-year revenue and earnings growth rates.
- Potential volatility in software market demand affecting future margins.
Market cap $16.5B · data as of 2026-08-19
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Analyze GEN with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.
