Infosys Ltd (NYSE: INFY)

Sector: Technology Industry: Information Technology Services CIK: 0001067491
Market Cap 61.29 Bn
P/B 5.47
P/E 19.41
P/S 3.18
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 3.24
Total Debt (Qtr) 675.00 Mn
Debt/Equity (Qtr) 0.06
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About

Infosys Ltd, commonly referred to as Infosys, operates in the technology industry, providing a range of services and solutions to clients across various sectors. The company is listed on the New York Stock Exchange under the ticker symbol INFY. Infosys' primary business activities revolve around consulting, technology, outsourcing, and next-generation digital services. The company boasts a global presence, with operations in over 40 countries, and a workforce of over 320,000 employees. Infosys generates revenue primarily through its consulting,...

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Investment thesis

Bull case

  • Strong tangible asset base of 15.91B provides 23.58x coverage of total debt 675M, indicating robust asset backing and low credit risk.
  • Tangible assets of 15.91B provide exceptional 16.01x coverage of deferred revenue 994M, showing strong service capability backing.
  • Long-term investments of 1.29B provide solid 1.92x coverage of long-term debt 675M, indicating strategic financial planning.
  • Cash position of 2.86B provides strong 2.88x coverage of deferred revenue 994M, ensuring service delivery capability.
  • Strong tangible asset base of 15.91B provides 10.57x coverage of intangibles 1.50B, indicating robust asset quality.

Bear case

  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 994M, which is 0x, raising concerns about future service delivery capabilities.
  • Other current liabilities of 4.53B represent a high 0.84x of receivables 5.41B, suggesting potential short-term liquidity pressure.

Geographical areas [axis] Breakdown of Revenue (2022)

Products and services [axis] Breakdown of Revenue (2022)

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 229.77 Bn 29.79 2.98 66.57 Bn
2 ACN Accenture plc 136.96 Bn 17.99 1.94 8.20 Bn
3 INFY Infosys Ltd 61.29 Bn 19.41 3.18 0.68 Bn
4 CTSH Cognizant Technology Solutions Corp 31.81 Bn 14.26 1.51 1.15 Bn
5 FIS Fidelity National Information Services, Inc. 28.54 Bn -1.17 2.90 13.00 Bn
6 WIT Wipro Ltd 23.98 Bn 16.25 2.37 2.35 Bn
7 LDOS Leidos Holdings, Inc. 20.68 Bn 14.28 1.20 5.24 Bn
8 BR Broadridge Financial Solutions, Inc. 20.38 Bn 19.09 2.84 3.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.40 1.23
EV to Cash from Ops. EV/CFO 13.63 3.12
EV to Debt EV to Debt 87.84 3.45
EV to EBIT EV/EBIT 13.20 -4.05
EV to EBITDA EV/EBITDA 12.78 3.57
EV to Free Cash Flow [EV/FCF] EV/FCF 14.50 -2.69
EV to Market Cap EV to Market Cap 0.97 1.54
EV to Revenue EV/Rev 3.08 47.25
Price to Book Value [P/B] P/B 5.47 3.04
Price to Earnings [P/E] P/E 19.41 4.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.61
Interest Coverage Int. cover (Qtr) 0.00 -318.37
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -256.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.44 128.67
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -36.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -22.62
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -87.06
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 75.53
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 122.99
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -8,761.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 -4.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.57 0.73
Current Ratio Curr Ratio (Qtr) 2.27 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.98
Interest Cover Ratio Int Coverage (Qtr) 0.00 -318.37
Times Interest Earned Times Interest Earned (Qtr) 0.00 -318.37
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -369.53
EBIT Margin % EBIT Margin % (Qtr) 0.00 -585.52
EBT Margin % EBT Margin % (Qtr) 0.00 -637.04
Gross Margin % Gross Margin % (Qtr) 0.00 24.60
Net Profit Margin % Net Margin % (Qtr) 0.00 -639.67