Gen Digital Inc
Exchange: NASDAQSector: TechnologyIndustry: Software - Infrastructure
NortonLifeLock Inc. is a global leader in consumer Cyber Safety, protecting and empowering people to live their digital lives safely. We are the consumer's trusted ally in an increasingly complex and connected world.
Did you know?
Currently near its 52-week low — in the bottom 0% of its range.
Current Price
$18.37
-2.75%GoodMoat Value
$18.82
2.4% undervaluedProfile
Valuation (TTM)
Market Cap$11.33B
P/E18.79
EV$20.75B
P/B4.99
Shares Out616.72M
P/Sales2.40
Revenue$4.73B
EV/EBITDA8.69
Gen Digital Inc (GEN) Stock Analysis
GoodMoat Analysis
Gen Digital, a consumer cybersecurity software provider, shows a mixed profile for value investors. It exhibits strong profitability metrics and a high free cash flow yield, but its competitive moat appears limited and its valuation offers only a marginal margin of safety.
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Gen Digital Inc is a consumer-focused cybersecurity software company, offering products like Norton and Avast. Applying the GoodMoat framework, the business shows a mixed profile. Its primary moat likely stems from its brand recognition in consumer security and potentially high switching costs for its integrated software suites, but a comprehensive moat score would likely be low, potentially below the critical threshold of 5. This suggests a less durable competitive advantage against a crowded field of competitors. Financially, the company demonstrates strong quality indicators with a high operating margin of 40.9%, a robust ROE of 26.6%, and a compelling free cash flow yield of 10.0%. However, its high debt-to-equity ratio of 3.64 is a significant concern. The valuation assessment is neutral. The current price of $19.46 is slightly above the GoodMoat target of $18.81, implying a marginal or negative margin of safety in a DCF model, which would place it in the 'Unfavourable' or 'Marginal' band. For a value investor, Gen Digital presents a case for proceeding with caution. It passes some quality checks but may fail the initial 'Moat & Quality Gate' due to a potentially weak moat score. Even if it proceeded, the valuation does not provide a compelling margin of safety, and the high financial leverage is a notable red flag. Further investigation would require a deep dive into the durability of its customer base and its ability to manage debt while maintaining profitability. Analysis based on data as of 2024-05-15.
Market Cap$11.33B
Current Price$18.37
P/E Ratio18.79
Forward P/E—
PEG Ratio0.98
EPS$1.03
Book Value$3.68
P/B Ratio4.99
GEN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -1.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 7.3B
Revenue
2.5B
FY19
2.5B
FY20
2.6B
FY21
2.8B
FY22
3.3B
FY23
3.8B
FY24
3.9B
FY25
Net Income
31M
FY19
3.9B
FY20
554M
FY21
836M
FY22
1.3B
FY23
607M
FY24
643M
FY25
GEN 52-Week Range
$18.32
$31.71
50-Day MA: $21.64200-Day MA: $26.33
Did you know?
Trading 2% below its estimated fair value of $18.82.
Gen Digital Inc (GEN) Financial Summary
Gen Digital Inc (GEN) is a Technology company in the Software - Infrastructure industry, listed on NASDAQ. The stock currently trades at $18.37 with a market capitalization of $11.33B.
Key valuation metrics include a P/E ratio of 18.79, price-to-book ratio of 4.99, and EPS of $1.03. The company reports a profit margin of 12.8% and return on equity of 26.6%.
GEN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $11.33B |
| P/E Ratio | 18.79 |
| EPS | $1.03 |
| P/B Ratio | 4.99 |
| P/S Ratio | 2.40 |
| EV/EBITDA | 8.69 |
| Dividend Yield | 2.76% |
| Profit Margin | 12.8% |
| Return on Equity | 26.6% |
| Debt/Equity | 3.64 |
GEN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.46B | $31.00M |
| FY20 | $2.49B | $3.89B |
| FY21 | $2.55B | $554.00M |
| FY22 | $2.80B | $836.00M |
| FY23 | $3.32B | $1.33B |
| FY24 | $3.80B | $607.00M |
| FY25 | $3.94B | $643.00M |
Gen Digital Inc (GEN) Valuation
Based on GoodMoat's DCF model, Gen Digital Inc has a fair value estimate of $18.82. At the current price of $18.37, the stock appears 2.4% undervalued relative to our intrinsic value estimate.
GEN Quality Indicators
Gen Digital Inc maintains a profit margin of 12.8% and an operating margin of 40.9%. Return on equity stands at 26.6%. The current ratio is 0.51. Debt-to-equity ratio is 3.64.
About Gen Digital Inc
NortonLifeLock Inc. is a global leader in consumer Cyber Safety, protecting and empowering people to live their digital lives safely. We are the consumer's trusted ally in an increasingly complex and connected world.
GEN Free Cash Flow
Gen Digital Inc generated $1.21B in trailing twelve-month free cash flow, representing an FCF yield of 10.65%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
GEN Shares Outstanding
Gen Digital Inc has 0.62 billion shares outstanding at a share price of $18.37, giving it a market capitalization of $11.33B.
GEN Recent Insider Trades
Recent insider transactions at Gen Digital Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| DERSE NATALIE MARIE (CFO) | SELL | 794 | $18754.28 |