Executive Summary
Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with outstanding track record and pays a dividend.
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: INFY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.5%
INFY
-2.2%
IN IT
-1.6%
IN Market
1 Year Return
54.2%
INFY
32.2%
IN IT
-2.2%
IN Market
Return vs Industry: INFY exceeded the Indian IT industry which returned 29.4% over the past year.
Return vs Market: INFY exceeded the Indian Market which returned -2.5% over the past year.
Shareholder returns
| INFY | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.5% | -2.2% | -1.6% |
| 30 Day | 5.2% | 5.9% | 1.7% |
| 90 Day | 9.8% | 16.3% | 6.2% |
| 1 Year | 58.0%54.2% | 34.8%32.2% | -0.4%-2.2% |
| 3 Year | 150.8%128.9% | 107.4%95.2% | -4.4%-9.0% |
| 5 Year | 114.9%86.3% | 113.1%92.4% | 40.4%29.8% |
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
1 week ago | Simply Wall St
Read This Before Buying Infosys Limited (NSE:INFY) For Its Dividend3 weeks ago | Simply Wall St
Shareholders Of Infosys (NSE:INFY) Must Be Happy With Their 152% Total Return1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Infosys Limited (NSE:INFY)Valuation
Is Infosys undervalued compared to its fair value and its price relative to the market?
24.89x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: INFY (₹1060.6) is trading above our estimate of fair value (₹474.84)
Significantly Below Fair Value: INFY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: INFY is poor value based on its PE Ratio (24.9x) compared to the IN IT industry average (18.2x).
PE vs Market: INFY is poor value based on its PE Ratio (24.9x) compared to the Indian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: INFY is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: INFY is overvalued based on its PB Ratio (6.3x) compared to the IN IT industry average (1.3x).
Next Steps
Future Growth
How is Infosys forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?
9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: INFY's forecast earnings growth (9.9% per year) is above the savings rate (7.2%).
Earnings vs Market: INFY's earnings (9.9% per year) are forecast to grow slower than the Indian market (25.6% per year).
High Growth Earnings: INFY's earnings are forecast to grow, but not significantly.
Revenue vs Market: INFY's revenue (9.4% per year) is forecast to grow slower than the Indian market (11.3% per year).
High Growth Revenue: INFY's revenue (9.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: INFY's Return on Equity is forecast to be high in 3 years time (28.2%)
Next Steps
Past Performance
How has Infosys performed over the past 5 years?
3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: INFY has high quality earnings.
Growing Profit Margin: INFY's current net profit margins (18.9%) are higher than last year (17.8%).
Past Earnings Growth Analysis
Earnings Trend: INFY's earnings have grown by 3% per year over the past 5 years.
Accelerating Growth: INFY's earnings growth over the past year (10.4%) exceeds its 5-year average (3% per year).
Earnings vs Industry: INFY earnings growth over the past year (10.4%) exceeded the IT industry -4.5%.
Return on Equity
High ROE: INFY's Return on Equity (25.2%) is considered high.
Next Steps
Financial Health
How is Infosys's financial position?
Financial Position Analysis
Short Term Liabilities: INFY's short term assets ($7.8B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: INFY's short term assets ($7.8B) exceed its long term liabilities ($876.0M).
Debt to Equity History and Analysis
Debt Level: INFY is debt free.
Reducing Debt: INFY has not had any debt for past 5 years.
Debt Coverage: INFY has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: INFY has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Infosys's current dividend yield, its reliability and sustainability?
2.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: INFY's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: INFY's dividend (2.03%) is low compared to the top 25% of dividend payers in the Indian market (2.35%).
Stability and Growth of Payments
Stable Dividend: INFY's dividend payments have been volatile in the past 10 years.
Growing Dividend: INFY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.7%), INFY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: INFY's dividends in 3 years are forecast to be covered by earnings (61.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Salil Parekh (56 yo)
2.75yrs
Tenure
US$6,153,669
Compensation
Mr. Salil Satish Parekh has been the Chief Executive Officer, Managing Director and Whole-time Director of Infosys Limited since January 2, 2018. Mr. Parekh sets and evolves the strategic direction for the ...
CEO Compensation Analysis
Compensation vs Market: Salil's total compensation ($USD6.15M) is above average for companies of similar size in the Indian market ($USD1.12M).
Compensation vs Earnings: Salil's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 2.75yrs | US$6.15m | 0.010% $ 465.5m | |
| President | 4yrs | US$3.01m | no data | |
| President | 4yrs | US$3.28m | 0.0046% $ 211.1m | |
| Chief Financial Officer | 1.58yrs | US$1.55m | 0.00021% $ 9.6m | |
| COO & Whole-time Director | 6.75yrs | US$2.30m | 0.027% $ 1.2b | |
| Executive VP | 3.25yrs | US$1.65m | 0.00076% $ 34.6m | |
| Group Head of Human Resources & Infosys Leadership Structure and Executive VP | 4yrs | US$1.00m | 0.0010% $ 46.5m | |
| Executive VP and Segment Head of Communication | no data | no data | 0.0012% $ 55.2m | |
| Group Head of Administration | no data | US$5.16m | 0% $ 0 | |
| VP, Financial Controller & Head of Investor Relations | no data | no data | 0.000080% $ 3.6m | |
| Global Head of Talent & Technology Operations and Executive VP | no data | US$4.48m | 0.058% $ 2.6b | |
| Executive VP | 7.5yrs | US$217.81k | 0.00016% $ 7.3m |
4.0yrs
Average Tenure
56yo
Average Age
Experienced Management: INFY's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 2.75yrs | US$6.15m | 0.010% $ 465.5m | |
| COO & Whole-time Director | 6.75yrs | US$2.30m | 0.027% $ 1.2b | |
| CEO, President & Director of Infosys Public Svcs | no data | US$428.93k | 0.00078% $ 35.6m | |
| Non-Executive and Non-Independent Chairman of the Board | 3.17yrs | no data | 2.37% $ 108.0b | |
| Additional & Independent Director | 0.25yr | no data | no data | |
| Lead Independent Director | 2.5yrs | US$150.00k | no data | |
| Independent Director | 4.75yrs | US$229.58k | 0.000070% $ 3.2m | |
| Independent Director | 3.25yrs | US$150.00k | no data | |
| Independent Director | 0.50yr | no data | no data | |
| Independent Director | 2.25yrs | US$198.76k | no data |
2.8yrs
Average Tenure
58yo
Average Age
Experienced Board: INFY's board of directors are not considered experienced ( 2.8 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: INFY insiders have only sold shares 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: INFY
- Exchange: NSEI
- Founded: 1981
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹4.559t
- Shares outstanding: 4.24b
- Website: https://www.infosys.com
Number of Employees
Location
- Infosys Limited
- 44, Infosys Avenue
- Electronics City
- Bengaluru
- Karnataka
- 560100
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500209 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 1995 |
| INFY | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 1995 |
| INFY | NYSE (New York Stock Exchange) | ADR EACH REPR 1ORD INR5 | US | USD | Mar 1999 | |
| IOY | DB (Deutsche Boerse AG) | ADR EACH REPR 1ORD INR5 | DE | EUR | Mar 1999 | |
| INFY N | BMV (Bolsa Mexicana de Valores) | ADR EACH REPR 1ORD INR5 | MX | MXN | Mar 1999 | |
| IOY | WBAG (Wiener Boerse AG) | ADR EACH REPR 1ORD INR5 | AT | EUR | Mar 1999 | |
| INFY | BASE (Buenos Aires Stock Exchange) | CEDEAR (4 REP 1 ADR) | AR | ARS | Jul 2007 |
Biography
Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides applica ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 12:42 |
| End of Day Share Price | 2020/10/30 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.