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Infosys Ltd ADR INFY

Morningstar Rating
$17.36 −0.04 (0.23%)
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Company Report

Infosys Earnings: Customer Discretionary Spending Remains Impacted as Macro Uncertainty Persists

We are maintaining our $16 fair value estimate for narrow-moat Infosys after the firm closed out fiscal 2024 with financial results and guidance reflecting the weak demand landscape as companies rethink their IT spending during a period of macroeconomic uncertainty. While the near-term picture remains murky, we reiterate our confidence in Infosys’ long-term opportunity as secular tailwinds such as digital transformations, cloud migrations, and increased usage of AI stand to drive demand for IT services vendors. With shares trading down sharply after the firm reported earnings, we view Infosys’ shares as fairly valued.

Price vs Fair Value

INFY is trading at a 523% premium.
Price
$17.36
Fair Value
$55.00
Uncertainty
Medium
1-Star Price
$83.70
5-Star Price
$47.80
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
$17.40
Day Range
$17.3317.48
52-Week Range
$15.1220.74
Bid/Ask
$17.35 / $17.50
Market Cap
$71.89 Bil
Volume/Avg
9.2 Mil / 10.0 Mil

Key Statistics

Price/Earnings (Normalized)
24.45
Price/Sales
3.88
Dividend Yield (Trailing)
2.47%
Dividend Yield (Forward)
2.47%
Total Yield
2.47%

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)
24.4520.4330.34
Price/Book Value
6.813.1915.39
Price/Sales
3.882.675.83
Price/Cash Flow
19.0816.2127.79
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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Capital Allocation
Economic Moat
Market Cap
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FIS
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CTSH
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GIB
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BR
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JKHY
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