BSE:500209

Stock Analysis Report

Executive Summary

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Infosys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500209 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

24.1%

500209

2.1%

IN IT

-2.9%

IN Market


1 Year Return

-13.5%

500209

-15.1%

IN IT

-29.3%

IN Market

Return vs Industry: 500209 exceeded the Indian IT industry which returned -15.1% over the past year.

Return vs Market: 500209 exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

500209IndustryMarket
7 Day24.1%2.1%-2.9%
30 Day-10.6%-13.4%-23.7%
90 Day-10.7%-18.3%-28.6%
1 Year-11.2%-13.5%-12.5%-15.1%-27.9%-29.3%
3 Year42.5%29.5%35.7%27.3%-15.4%-20.0%
5 Year37.4%20.1%31.0%18.5%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Infosys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Infosys undervalued compared to its fair value and its price relative to the market?

15.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500209 (₹653.55) is trading above our estimate of fair value (₹491.86)

Significantly Below Fair Value: 500209 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500209 is poor value based on its PE Ratio (16x) compared to the IT industry average (7x).

PE vs Market: 500209 is poor value based on its PE Ratio (16x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500209 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 500209 is overvalued based on its PB Ratio (4.3x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is Infosys forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500209's forecast earnings growth (7.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 500209's earnings (7.4% per year) are forecast to grow slower than the Indian market (19.6% per year).

High Growth Earnings: 500209's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500209's revenue (8% per year) is forecast to grow slower than the Indian market (8.9% per year).

High Growth Revenue: 500209's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500209's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Infosys performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500209 has high quality earnings.

Growing Profit Margin: 500209's current net profit margins (18.4%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: 500209's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: 500209's earnings growth over the past year (6.1%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: 500209 earnings growth over the past year (6.1%) underperformed the IT industry 7.2%.


Return on Equity

High ROE: 500209's Return on Equity (27.1%) is considered high.


Next Steps

Financial Health

How is Infosys's financial position?


Financial Position Analysis

Short Term Liabilities: 500209's short term assets ($7.1B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: 500209's short term assets ($7.1B) exceed its long term liabilities ($731.0M).


Debt to Equity History and Analysis

Debt Level: 500209 is debt free.

Reducing Debt: 500209 has not had any debt for past 5 years.

Debt Coverage: 500209 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500209 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500209 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500209's debt is covered by short term assets.


Next Steps

Dividend

What is Infosys's current dividend yield, its reliability and sustainability?

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500209's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 500209's dividend (3.58%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: 500209's dividends per share have been stable in the past 10 years.

Growing Dividend: 500209's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), 500209's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500209's dividends in 3 years are forecast to be covered by earnings (66.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Salil Parekh (55yo)

2.17s

Tenure

US$4,838,810

Compensation

Mr. Salil Satish Parekh has been the Chief Executive Officer, Managing Director and Whole-time Director of Infosys Limited since January 2, 2018. Mr. Parekh sets and evolves the strategic direction for the ...


CEO Compensation Analysis

Compensation vs Market: Salil's total compensation ($USD4.84M) is above average for companies of similar size in the Indian market ($USD934.17K).

Compensation vs Earnings: Salil's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Salil Parekh
MD, CEO & Director2.17yrsUS$4.84m0.0048% $132.6m
Ravi Singisetti
President & Deputy COO3.42yrsUS$2.41m0.0019% $54.0m
Mohit Joshi
President3.42yrsUS$2.63m0.0018% $49.5m
Nilanjan Roy
Chief Financial Officer1yrUS$601.29kno data
U. B. Rao
COO & Whole-time Director6.17yrsUS$1.78m0.026% $709.6m
Inderpreet Sawhney
Executive VP2.67yrsUS$1.33m0.00076% $21.0m
Krishnamurthy Shankar
Group Head of Human Resources Development & Executive VP3.42yrsUS$828.33k0.00079% $21.9m
Scott Sorokin
Head of Global Services & Digital Experience and Senior VP4yrsno data0.00038% $10.5m
Jayesh Sanghrajka
Executive VP & Deputy CFO1yrUS$399.07k0.00041% $11.3m
Anand Swaminathan
Executive VP and Segment Head of Communicationno datano data0.00043% $11.9m

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: 500209's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Salil Parekh
MD, CEO & Director2.17yrsUS$4.84m0.0048% $132.6m
U. B. Rao
COO & Whole-time Director6.17yrsUS$1.78m0.026% $709.6m
Eric Paternoster
CEO, President & Director of Infosys Public Svcsno dataUS$428.93k0.00020% $5.5m
Nandan Nilekani
Non-Executive Chairman of the Board2.58yrsno data2.37% $65.6b
Kiran Mazumdar-Shaw
Lead Independent Director1.92yrsUS$150.00kno data
Punita Kumar-Sinha
Independent Director4.17yrsUS$217.00k0.00014% $3.9m
Damodarannair Sundaram
Independent Director2.67yrsUS$150.00kno data
D. Prahlad
Independent Director3.42yrsUS$197.62k0.042% $1.2b
Michael Gibbs
Independent Director1.67yrsUS$109.01kno data

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 500209's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500209 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Infosys Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infosys Limited
  • Ticker: 500209
  • Exchange: BSE
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹2.768t
  • Shares outstanding: 4.24b
  • Website: https://www.infosys.com

Number of Employees


Location

  • Infosys Limited
  • Electronics City
  • Hosur Road
  • Bengaluru
  • Karnataka
  • 560100
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500209BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
INFYNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995
INFYNYSE (New York Stock Exchange)ADR EACH REPR 1ORD INR5USUSDMar 1999
IOYDB (Deutsche Boerse AG)ADR EACH REPR 1ORD INR5DEEURMar 1999
INFY NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1ORD INR5MXMXNMar 1999
IOYWBAG (Wiener Boerse AG)ADR EACH REPR 1ORD INR5ATEURMar 1999

Biography

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. It provides application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services. The company’s products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys NIA - an artificial intelligence platform; McCamish - an insurance platform; Panaya; and Skava. It also operates a Defence Center and a Digital Innovation Center. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries. Infosys Limited has a strategic partnership with ABN AMRO Bank N.V. for providing mortgage administration services through digital platforms in the Netherlands, Belgium, and Germany. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was founded in 1981 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:51
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.