NSEI:INFY

Stock Analysis Report

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Market Cap

₹6.8t

Last Updated

2021/07/31 12:19 UTC

Data Sources

Company Financials +

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


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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: INFY's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

INFY

0.4%

IN IT

0.2%

IN Market


1 Year Return

66.7%

INFY

60.5%

IN IT

54.1%

IN Market

Return vs Industry: INFY exceeded the Indian IT industry which returned 60.5% over the past year.

Return vs Market: INFY exceeded the Indian Market which returned 54% over the past year.


Shareholder returns

INFYIndustryMarket
7 Day1.3%0.4%0.2%
30 Day3.2%1.6%2.0%
90 Day18.9%14.5%12.6%
1 Year70.3%66.7%63.3%60.5%56.2%54.1%
3 Year155.2%136.1%109.7%97.2%37.3%30.3%
5 Year247.5%201.6%197.8%170.0%81.9%66.7%

Long-Term 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?

33.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INFY (₹1610.5) is trading above our estimate of fair value (₹790.21)

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 (33.3x) compared to the Indian IT industry average (32.5x).

PE vs Market: INFY is poor value based on its PE Ratio (33.3x) compared to the Indian market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: INFY is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: INFY is overvalued based on its PB Ratio (9.5x) compared to the IN IT industry average (2.1x).


Future Growth

How is Infosys forecast to perform in the next 1 to 3 years based on estimates from 44 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INFY's forecast earnings growth (11.1% per year) is above the savings rate (6.8%).

Earnings vs Market: INFY's earnings (11.1% per year) are forecast to grow slower than the Indian market (20.6% per year).

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

Revenue vs Market: INFY's revenue (10.3% per year) is forecast to grow slower than the Indian market (12.4% per year).

High Growth Revenue: INFY's revenue (10.3% 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 (32.1%)


Past Performance

How has Infosys performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INFY has high quality earnings.

Growing Profit Margin: INFY's current net profit margins (19.4%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: INFY's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: INFY's earnings growth over the past year (17.8%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: INFY earnings growth over the past year (17.8%) underperformed the IT industry 18.2%.


Return on Equity

High ROE: INFY's Return on Equity (28.4%) is considered high.


Financial Health

How is Infosys's financial position?


Financial Position Analysis

Short Term Liabilities: INFY's short term assets ($8.3B) exceed its short term liabilities ($4.0B).

Long Term Liabilities: INFY's short term assets ($8.3B) exceed its long term liabilities ($1.0B).


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


Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INFY's dividend (1.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: INFY's dividend (1.85%) is in the top 25% of dividend payers in the Indian market (1.42%)


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 (55.4%), 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 (54.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Salil Parekh (57 yo)

3.5yrs

Tenure

US$6,017,556

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 ($USD6.02M) is above average for companies of similar size in the Indian market ($USD1.25M).

Compensation vs Earnings: Salil's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: INFY's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: INFY's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INFY 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: INFY
  • Exchange: NSEI
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹6.831t
  • Shares outstanding: 4.24b
  • Website: https://www.infosys.com

Number of Employees


Location

  • Infosys Limited
  • Plot no. 44/97 A
  • 3rd cross
  • Bengaluru
  • Karnataka
  • 560100
  • India

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 12:19
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.