Gen Digital Inc.
Find Ratings ReportsGEN DIGITAL INC's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. GEN DIGITAL INC has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 84.58% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 951.0 | 936.0 |
EBITDA ($mil) | 529.0 | 503.0 |
EBIT ($mil) | 405.0 | 378.0 |
Net Income ($mil) | 144.0 | 165.0 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 490.0 | 812.0 |
Total Assets ($mil) | 16282.0 | 15503.0 |
Total Debt ($mil) | 9300.0 | 10128.0 |
Equity ($mil) | 2418.0 | 1310.0 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 87.49 | 87.82 |
EBITDA Margin | 55.62 | 53.73 |
Operating Margin | 42.59 | 40.38 |
Sales Turnover | 0.23 | 0.2 |
Return on Assets | 8.58 | 3.57 |
Return on Equity | 57.78 | 42.29 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.67 | 0.48 |
Debt/Capital | 0.79 | 0.89 |
Interest Expense | 165.0 | 154.0 |
Interest Coverage | 2.45 | 2.45 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 637.0 | 639.0 |
Div / share | 0.13 | 0.13 |
EPS | 0.22 | 0.25 |
Book value / share | 3.8 | 2.05 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4297408.0 | 4168565.0 |
BUY. GEN DIGITAL INC's P/E ratio indicates a significant discount compared to an average of 47.17 for the Publishing Industries subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.69 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.80. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, GEN DIGITAL INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GEN 9.99 | Peers 47.17 | GEN 13.92 | Peers 33.15 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. GEN is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. GEN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GEN 9.66 | Peers 32.16 | GEN NM | Peers 1.66 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. GEN is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. GEN's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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GEN 5.69 | Peers 11.80 | GEN 140.00 | Peers 148.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. GEN is trading at a significant discount to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. GEN is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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GEN 3.63 | Peers 12.32 | GEN 22.04 | Peers 12.66 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. GEN is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. GEN has a sales growth rate that significantly exceeds its peers. |
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