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 with solid 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
-0.2%
INFY
0.002%
IN IT
3.8%
IN Market
1 Year Return
-6.3%
INFY
-11.2%
IN IT
-20.9%
IN Market
Return vs Industry: INFY exceeded the Indian IT industry which returned -11.2% over the past year.
Return vs Market: INFY exceeded the Indian Market which returned -20.9% over the past year.
Shareholder returns
| INFY | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 0.002% | 3.8% |
| 30 Day | -3.4% | 5.3% | 0.5% |
| 90 Day | -5.6% | -4.2% | -14.8% |
| 1 Year | -2.5%-6.3% | -8.2%-11.2% | -19.3%-20.9% |
| 3 Year | 56.7%42.6% | 47.5%38.6% | -9.6%-14.4% |
| 5 Year | 59.4%37.4% | 50.1%35.9% | 13.0%2.4% |
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 year ago | Simply Wall St
Can Infosys Limited's (NSE:INFY) ROE Continue To Surpass The Industry Average?1 year ago | Simply Wall St
Did Infosys Limited's (NSE:INFY) Recent Earnings Growth Beat The Trend?1 year ago | Simply Wall St
What Should Investors Know About Infosys Limited's (NSE:INFY) Capital Returns?Valuation
Is Infosys undervalued compared to its fair value and its price relative to the market?
16.69x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: INFY (₹691) is trading above our estimate of fair value (₹338.86)
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 (16.7x) compared to the IT industry average (8.1x).
PE vs Market: INFY is poor value based on its PE Ratio (16.7x) compared to the Indian market (10x).
Price to Earnings Growth Ratio
PEG Ratio: INFY is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: INFY is overvalued based on its PB Ratio (4.5x) 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 44 analysts?
3.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: INFY's forecast earnings growth (3.5% per year) is below the savings rate (7.2%).
Earnings vs Market: INFY's earnings (3.5% per year) are forecast to grow slower than the Indian market (16.8% per year).
High Growth Earnings: INFY's earnings are forecast to grow, but not significantly.
Revenue vs Market: INFY's revenue (4.2% per year) is forecast to grow slower than the Indian market (7.2% per year).
High Growth Revenue: INFY's revenue (4.2% 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 (25.1%)
Next Steps
Past Performance
How has Infosys performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: INFY has high quality earnings.
Growing Profit Margin: INFY's current net profit margins (18.2%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: INFY's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: INFY's earnings growth over the past year (6%) exceeds its 5-year average (3.2% per year).
Earnings vs Industry: INFY earnings growth over the past year (6%) exceeded the IT industry 5.4%.
Return on Equity
High ROE: INFY's Return on Equity (26.9%) is considered high.
Next Steps
Financial Health
How is Infosys's financial position?
Financial Position Analysis
Short Term Liabilities: INFY's short term assets ($7.2B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: INFY's short term assets ($7.2B) exceed its long term liabilities ($802.0M).
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?
2.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: INFY's dividend (2.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.84%).
High Dividend: INFY's dividend (2.63%) is low compared to the top 25% of dividend payers in the Indian market (3.57%).
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 reasonably low payout ratio (43.8%), INFY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: INFY's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Salil Parekh (55yo)
2.33yrs
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 ($USD1.08M).
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 | 2.33yrs | US$4.84m | 0.0078% $229.7m | |
| President & Deputy COO | 3.58yrs | US$2.41m | 0.0019% $57.1m | |
| President | 3.58yrs | US$2.63m | 0.0018% $52.5m | |
| Chief Financial Officer | 1.17yrs | US$601.29k | 0.00021% $6.2m | |
| COO & Whole-time Director | 6.33yrs | US$1.78m | 0.026% $751.4m | |
| Executive VP | 2.83yrs | US$1.33m | 0.00076% $22.3m | |
| Group Head of Human Resources Development & Executive VP | 3.58yrs | US$828.33k | 0.00079% $23.2m | |
| Head of Global Services & Digital Experience and Senior VP | 4.17yrs | no data | 0.00038% $11.1m | |
| Executive VP & Deputy CFO | 1.17yrs | US$399.07k | 0.00041% $12.0m | |
| Executive VP and Segment Head of Communication | no data | no data | 0.00043% $12.6m |
3.6yrs
Average Tenure
54yo
Average Age
Experienced Management: INFY's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 2.33yrs | US$4.84m | 0.0078% $229.7m | |
| COO & Whole-time Director | 6.33yrs | US$1.78m | 0.026% $751.4m | |
| CEO, President & Director of Infosys Public Svcs | no data | US$428.93k | 0.00078% $22.9m | |
| Non-Executive Chairman of the Board | 2.75yrs | no data | 2.37% $69.4b | |
| Lead Independent Director | 2.08yrs | US$150.00k | no data | |
| Independent Director | 4.33yrs | US$217.00k | 0.00014% $4.1m | |
| Independent Director | 2.83yrs | US$150.00k | no data | |
| Additional Independent Director | 0.083yr | no data | no data | |
| Independent Director | 1.83yrs | US$109.01k | no data |
2.5yrs
Average Tenure
61yo
Average Age
Experienced Board: INFY's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold 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: ₹2.930t
- Shares outstanding: 4.24b
- Website: https://www.infosys.com
Number of Employees
Location
- Infosys Limited
- Electronics City
- Hosur Road
- 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) | SPONSORED ADR | US | USD | Mar 1999 | |
| IOY | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Mar 1999 | |
| INFY N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADR | MX | MXN | Mar 1999 | |
| IOY | WBAG (Wiener Boerse AG) | SPONSORED ADR | AT | EUR | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 13:06 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| 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.