NSEI:INFY

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

Fundamentals

Flawless balance sheet 6 star 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: INFY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

INFY

0.2%

IN IT

-0.06%

IN Market


1 Year Return

15.2%

INFY

10.1%

IN IT

4.9%

IN Market

Return vs Industry: INFY exceeded the Indian IT industry which returned 10.1% over the past year.

Return vs Market: INFY exceeded the Indian Market which returned 4.9% over the past year.


Shareholder returns

INFYIndustryMarket
7 Day3.1%0.2%-0.06%
30 Day-7.1%0.4%1.9%
90 Day-10.4%-3.0%9.6%
1 Year18.9%15.2%13.1%10.1%6.9%4.9%
3 Year70.6%55.0%82.6%71.9%38.5%31.5%
5 Year51.8%32.6%57.8%43.1%41.8%29.1%

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

Valuation

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

19.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INFY (₹713) is trading above our estimate of fair value (₹442.8)

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 (19.5x) compared to the IT industry average (11.7x).

PE vs Market: INFY is poor value based on its PE Ratio (19.5x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: INFY is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: INFY is overvalued based on its PB Ratio (4.9x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INFY's forecast earnings growth (10.2% per year) is above the savings rate (7.6%).

Earnings vs Market: INFY's earnings (10.2% per year) are forecast to grow slower than the Indian market (18.8% per year).

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

Revenue vs Market: INFY's revenue (9.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: INFY's revenue (9.3% 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%)


Next Steps

Past Performance

How has Infosys performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INFY has high quality earnings.

Growing Profit Margin: INFY's current net profit margins (17.7%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: INFY's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: INFY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INFY had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the IT industry average (4.5%).


Return on Equity

High ROE: INFY's Return on Equity (25.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Infosys's financial position?


Financial Position Analysis

Short Term Liabilities: INFY's short term assets ($6.9B) exceeds its short term liabilities ($2.7B)

Long Term Liabilities: INFY's short term assets ($6.9B) exceeds its long term liabilities (721.0M)


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

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

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


Next Steps

Dividend

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

3.12%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: INFY's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: INFY's dividend (3.12%) is in the top 25% of dividend payers in the Indian market (2.43%)


Stability and Growth of Payments

Stable Dividend: INFY's dividends per share have been stable 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 (51%), 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 (64.5% payout ratio).


Next Steps

Management

What is the CEO of Infosys's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Salil Parekh (55yo)

1.8yrs

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 ($USD4.84M) is above average for companies of similar size in the Indian market ($USD1.14M).

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


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: INFY's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: INFY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: INFY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Member of the Board of Directors
Independent Director
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Role
Member of the Board of Directors
Independent Director
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Rajeev Ranjan
EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Narsimha Mannepalli
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D. Prahlad
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Member of the Board of Directors
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D. Prahlad
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Member of the Board of Directors
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D. Prahlad
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Member of the Board of Directors
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H. Satish
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Shaji Mathew
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Sunil Dhareshwar
EntityIndividual
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D. Prahlad
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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SellUS$3,527,96021 Aug 19
Deepak Bhalla
EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Sunil Dhareshwar
EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Shaji Mathew
EntityIndividual
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D. Balakrishna
EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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D. Balakrishna
EntityIndividual
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EntityIndividual
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Shaji Mathew
EntityIndividual
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D. Prahlad
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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Deepak Padaki
EntityIndividual
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D. Prahlad
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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Rajeev Ranjan
EntityIndividual
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Rajeev Ranjan
EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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EntityIndividual
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EntityIndividual
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EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Infosys Technologies Limited, Employees Provident Fund Trust
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EntityIndividual
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EntityIndividual
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EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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EntityIndividual
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Infosys Technologies Limited, Employees Provident Fund Trust
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Usha Shastry
EntityIndividual
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Ownership Breakdown

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


Management Team

  • Scott Sorokin (57yo)

    Head of Global Services & Digital Experience and Senior VP

    • Tenure: 3.8yrs
  • Salil Parekh (55yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.84m
  • Nilanjan Roy (53yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: US$601.29k
  • Krish Shankar (56yo)

    Group Head of Human Resources & Infosys Leadership Institute and Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$828.33k
  • U. B. Rao (57yo)

    COO & Whole-time Director

    • Tenure: 5.8yrs
    • Compensation: US$1.78m
  • Jayesh Sanghrajka (45yo)

    Executive VP & Deputy CFO

    • Tenure: 0.7yrs
    • Compensation: US$399.07k
  • Inderpreet Sawhney (54yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$1.33m
  • Ravi Singisetti (48yo)

    President & Deputy COO

    • Tenure: 3.1yrs
    • Compensation: US$2.41m
  • Mohit Joshi (44yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$2.63m
  • Anand Swaminathan

    Executive VP and Segment Head of Communication

    • Tenure: 0yrs

Board Members

  • Nandan Nilekani (63yo)

    Non-Executive Chairman of the Board

    • Tenure: 2.3yrs
  • Kiran Mazumdar-Shaw (66yo)

    Lead Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$150.00k
  • Roopa Kudva (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$148.63k
  • Salil Parekh (55yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.84m
  • Punita Kumar-Sinha (57yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$217.00k
  • Eric Paternoster

    CEO, President & Director of Infosys Public Svcs

    • Tenure: 0yrs
    • Compensation: US$428.93k
  • Damodarannair Sundaram (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$150.00k
  • U. B. Rao (57yo)

    COO & Whole-time Director

    • Tenure: 5.8yrs
    • Compensation: US$1.78m
  • D. Prahlad (63yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$197.62k
  • Michael Gibbs (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$109.01k

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: ₹3.022t
  • 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 mana ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 12:45
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.