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Infosys Ltd ADR INFY

Morningstar Rating
$16.75 +0.22 (1.30%)
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Company Report

Infosys Is a Leading IT Services Firm Poised for Financial Success

Infosys is a leading global IT services vendor, with the typical menu of offerings from software implementation to digital transformation consulting to servicing entire business operations teams. We think Infosys merits a narrow economic moat, similar to many of its peers, as we believe the company benefits from switching costs and intangible assets, although we also see Infosys benefiting from a cost advantage. While the company is experiencing industrywide labor shortages, we think that its stable moat trend will stay secure, and forays into the higher value realm of industrials engineering will help ensure Infosys does not miss out on substantial growth trends within the IT services industry at large.

Price vs Fair Value

INFY is trading at a 48% premium.
Price
$16.75
Fair Value
$84.00
Uncertainty
Medium
1-Star Price
$65.70
5-Star Price
$36.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Infosys should benefit from greater margin expansion than expected in our base case as more automated tech solutions decrease the variable costs associated with each incremental sale.

Bears

Infosys could suffer greater wage hikes than expected, leading to aggressive margin contraction if automation and mix shift benefits prove to be smaller in scale.

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News

Trading Information

Previous Close Price
$16.53
Day Range
$16.4416.82
52-Week Range
$15.1220.74
Bid/Ask
$16.70 / $16.84
Market Cap
$69.36 Bil
Volume/Avg
14.3 Mil / 10.4 Mil

Key Statistics

Price/Earnings (Normalized)
23.76
Price/Sales
3.77
Dividend Yield (Trailing)
3.29%
Dividend Yield (Forward)
3.29%
Total Yield
2.54%

Company Profile

Infosys is a leading global IT services provider, with nearly 250,000 employees. Based in Bangalore, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service (BPaaS).
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
322,663

Competitors

Valuation

Metric
INFY
WIT
TCS
Price/Earnings (Normalized)
23.7619.2029.45
Price/Book Value
6.613.0014.94
Price/Sales
3.772.515.66
Price/Cash Flow
18.5415.2326.97
Price/Earnings
INFY
WIT
TCS

Financial Strength

Metric
INFY
WIT
TCS
Quick Ratio
1.682.472.29
Current Ratio
1.992.582.45
Interest Coverage
11.1875.83
Quick Ratio
INFY
WIT
TCS

Profitability

Metric
INFY
WIT
TCS
Return on Assets (Normalized)
19.14%9.61%31.14%
Return on Equity (Normalized)
32.00%15.44%49.82%
Return on Invested Capital (Normalized)
28.86%11.76%43.44%
Return on Assets
INFY
WIT
TCS
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ACN
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FI
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FIS
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CTSH
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WIT
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BR
Broadridge Financial Solutions IncNbpxhdtwNhwybqb$23.7 Bil
GIB
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JKHY
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