NSEI:INFY

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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 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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: INFY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

INFY

0.8%

IN IT

1.8%

IN Market


1 Year Return

58.0%

INFY

40.4%

IN IT

7.9%

IN Market

Return vs Industry: INFY exceeded the Indian IT industry which returned 40.4% over the past year.

Return vs Market: INFY exceeded the Indian Market which returned 7.9% over the past year.


Shareholder returns

INFYIndustryMarket
7 Day-0.3%0.8%1.8%
30 Day3.7%1.8%10.8%
90 Day18.5%19.9%13.1%
1 Year61.8%58.0%43.1%40.4%10.0%7.9%
3 Year151.4%129.5%106.7%94.6%8.1%2.8%
5 Year141.9%109.7%128.2%106.3%55.3%43.6%

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?

25.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INFY (₹1100) is trading above our estimate of fair value (₹461.05)

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 (26x) compared to the IN IT industry average (19x).

PE vs Market: INFY is poor value based on its PE Ratio (26x) compared to the Indian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: INFY is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: INFY is overvalued based on its PB Ratio (6.6x) 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 40 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INFY's forecast earnings growth (10% per year) is above the savings rate (7.2%).

Earnings vs Market: INFY's earnings (10% per year) are forecast to grow slower than the Indian market (24.5% 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 (11.5% 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 (27.9%)


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 -4.2%.


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?

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INFY's dividend (1.94%) is higher than the bottom 25% of dividend payers in the Indian market (0.52%).

High Dividend: INFY's dividend (1.94%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).


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 (59.3% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Salil Parekh (56 yo)

2.83yrs

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 ($USD6.15M) is above average for companies of similar size in the Indian market ($USD945.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nandan Nilekani
Co-Founder & Chairman3.25yrsno data2.37%
$ 110.5b
Salil Parekh
MD, CEO & Director2.83yrsUS$6.15m0.010%
$ 476.0m
Ravi Singisetti
President4.08yrsUS$3.01mno data
Mohit Joshi
President4.08yrsUS$3.28m0.0040%
$ 184.3m
Nilanjan Roy
Chief Financial Officer1.67yrsUS$1.55m0.00021%
$ 9.8m
U. B. Rao
COO & Whole-time Director6.83yrsUS$2.30m0.027%
$ 1.3b
Inderpreet Sawhney
Executive VP3.33yrsUS$1.65m0.00076%
$ 35.5m
Krishnamurthy Shankar
Group Head of Human Resources & Infosys Leadership Structure and Executive VP4.08yrsUS$1.00m0.00094%
$ 43.9m
Anand Swaminathan
Executive VP and Segment Head of Communicationno datano data0.0012%
$ 56.5m
U. Kamath
Group Head of Administrationno dataUS$5.16m0%
$ 0
Sandeep Mahindroo
VP, Financial Controller & Head of Investor Relationsno datano data0.000070%
$ 3.3m
Binod Rangadore
Global Head of Talent & Technology Operations and Executive VPno dataUS$4.48m0.058%
$ 2.7b

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: INFY's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nandan Nilekani
Co-Founder & Chairman3.25yrsno data2.37%
$ 110.5b
Salil Parekh
MD, CEO & Director2.83yrsUS$6.15m0.010%
$ 476.0m
U. B. Rao
COO & Whole-time Director6.83yrsUS$2.30m0.027%
$ 1.3b
Eric Paternoster
CEO, President & Director of Infosys Public Svcsno dataUS$428.93k0.00078%
$ 36.4m
Bobby Parikh
Additional & Independent Director0.33yrno datano data
Kiran Mazumdar-Shaw
Lead Independent Director2.58yrsUS$150.00kno data
Punita Kumar-Sinha
Independent Director4.83yrsUS$229.58k0.000070%
$ 3.3m
Damodarannair Sundaram
Independent Director3.33yrsUS$150.00kno data
Uri Levine
Independent Director0.58yrno datano data
Michael Gibbs
Independent Director2.33yrsUS$198.76kno 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: ₹4.667t
  • 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

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
INFYBASE (Buenos Aires Stock Exchange)CEDEAR (4 REP 1 ADR)ARARSJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 12:13
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.