Skip to Content

Infosys Ltd ADR INFY

Morningstar Rating
$19.80 −0.03 (0.15%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Infosys’ Narrow Moat Stable as Deal Pipeline Remains Robust

Infosys is a leading global IT services provider, 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 24% premium.
Price
$19.80
Fair Value
$59.00
Uncertainty
Medium
1-Star Price
$29.40
5-Star Price
$82.20
Economic Moat
Xqnzjbv
Capital Allocation
Szdqyfxh

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if INFY is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$19.83
Day Range
$19.5019.81
52-Week Range
$14.7120.74
Bid/Ask
$19.70 / $19.98
Market Cap
$81.96 Bil
Volume/Avg
6.8 Mil / 7.3 Mil

Key Statistics

Price/Earnings (Normalized)
27.89
Price/Sales
4.43
Dividend Yield (Trailing)
2.17%
Dividend Yield (Forward)
2.17%
Total Yield
3.88%

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
CTSH
ACN
Price/Earnings (Normalized)
27.8917.3832.35
Price/Book Value
8.522.989.97
Price/Sales
4.432.063.79
Price/Cash Flow
21.4815.8522.64
Price/Earnings
INFY
CTSH
ACN

Financial Strength

Metric
INFY
CTSH
ACN
Quick Ratio
1.681.951.18
Current Ratio
1.992.251.33
Interest Coverage
65.90162.06
Quick Ratio
INFY
CTSH
ACN

Profitability

Metric
INFY
CTSH
ACN
Return on Assets (Normalized)
19.14%13.44%17.12%
Return on Equity (Normalized)
32.00%19.02%37.32%
Return on Invested Capital (Normalized)
28.86%16.62%28.70%
Return on Assets
INFY
CTSH
ACN
See how this stock stacks up to its competitors with Morningstar Investor

Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ACN
Accenture PLC Class AJgvjd$240.6 Bil
IBM
International Business Machines CorpJvvqpd$177.0 Bil
FI
Fiserv IncBjfsj$88.6 Bil
FIS
Fidelity National Information Services IncNncwqh$40.0 Bil
CTSH
Cognizant Technology Solutions Corp Class ASgnfwdx$39.4 Bil
WIT
Wipro Ltd ADRVxfnpr$32.8 Bil
GIB
CGI Inc Class AMchfm$27.1 Bil
BR
Broadridge Financial Solutions IncHhvqsv$24.2 Bil
EPAM
EPAM Systems IncYddgr$17.8 Bil

Sponsor Center