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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 AI

Not investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.