(GEN) Gen Digital - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 15.051m USD | Total Return: -8.8% in 12m
Avg Turnover: 189M
EPS Trend: 99.7%
Qual. Beats: 1
Rev. Trend: 91.8%
Qual. Beats: 1
Warnings
Altman Z'' 0.44 < 1.0 - financial distress zone
Tailwinds
Garp
Gen Digital Inc. (NASDAQ: GEN) provides cyber safety solutions for consumers and small businesses, focusing on identity protection, endpoint security, and online privacy. Headquartered in Tempe, Arizona, the company operates a multi-brand portfolio including Norton, Avast, LifeLock, and AVG following its 2022 rebranding from NortonLifeLock Inc.
The company operates within the cybersecurity sector, utilizing a subscription-based business model that generates recurring revenue through annual or monthly renewals. This model is common in the application software industry as it scales efficiently across global digital distribution channels.
Analyzing historical valuation trends on ValueRay can help determine if the current stock price aligns with its long-term growth trajectory. Gen Digital continues to integrate legacy Avast assets to capture synergies and expand its share of the retail security market.
- Direct-to-consumer subscription growth across Norton and Avast brands drives recurring revenue
- LifeLock identity protection demand increases amid rising global data breach incidents
- High debt leverage from Avast acquisition exposes earnings to interest rate volatility
- Cross-selling integrated privacy and security suites expands average revenue per user
- Competitive pricing pressure from free antivirus software alternatives impacts operating margins
| Net Income: 973.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.99 > 1.0 |
| NWC/Revenue: -32.58% < 20% (prev -35.76%; Δ 3.18% < -1%) |
| CFO/TA 0.10 > 3% & CFO 1.54b > Net Income 973.0m |
| Net Debt (7.84b) to EBITDA (2.59b): 3.03 < 3 |
| Current Ratio: 0.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (609.0m) vs 12m ago -2.40% < -2% |
| Gross Margin: 76.28% > 18% (prev 0.80%; Δ 7.55k% > 0.5%) |
| Asset Turnover: 32.17% > 50% (prev 25.40%; Δ 6.78% > 0%) |
| Interest Coverage Ratio: 3.68 > 6 (EBITDA TTM 2.59b / Interest Expense TTM 569.0m) |
| A: -0.10 (Total Current Assets 1.08b - Total Current Liabilities 2.71b) / Total Assets 15.59b |
| B: 0.00 (Retained Earnings 32.0m / Total Assets 15.59b) |
| C: 0.13 (EBIT TTM 2.09b / Avg Total Assets 15.54b) |
| D: 0.20 (Book Value of Equity 2.61b / Total Liabilities 12.98b) |
| Altman-Z'' = 0.44 = B |
| DSRI: 1.53 (Receivables 361.0m/186.0m, Revenue 5.00b/3.94b) |
| GMI: 1.05 (GM 76.28% / 80.28%) |
| AQI: 1.03 (AQ_t 0.93 / AQ_t-1 0.90) |
| SGI: 1.27 (Revenue 5.00b / 3.94b) |
| TATA: -0.04 (NI 973.0m - CFO 1.54b) / TA 15.59b) |
| Beneish M = -2.37 (Cap -4..+1) = BBB |
As of May 23, 2026, the stock is trading at USD 24.85 with a total of 9,426,305 shares traded.
Over the past week, the price has changed by +6.41%,
over one month by +24.83%,
over three months by +15.26% and
over the past year by -8.84%.
Gen Digital has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy GEN.
- StrongBuy: 4
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 30 | 20.8% |
P/E Forward = 8.8652
P/S = 3.0101
P/B = 5.8003
P/EG = 1.4778
Revenue TTM = 5.00b USD
EBIT TTM = 2.09b USD
EBITDA TTM = 2.59b USD
Long Term Debt = 8.17b USD (from longTermDebt, two quarters ago)
Short Term Debt = 181.0m USD (from shortTermDebt, last quarter)
Debt = 8.25b USD (from shortLongTermDebtTotal, last quarter) + Leases 56.0m
Net Debt = 7.84b USD (calculated: Debt 8.25b - CCE 411.0m)
Enterprise Value = 22.89b USD (15.05b + Debt 8.25b - CCE 411.0m)
Interest Coverage Ratio = 3.68 (Ebit TTM 2.09b / Interest Expense TTM 569.0m)
EV/FCF = 15.03x (Enterprise Value 22.89b / FCF TTM 1.52b)
FCF Yield = 6.65% (FCF TTM 1.52b / Enterprise Value 22.89b)
FCF Margin = 30.46% (FCF TTM 1.52b / Revenue TTM 5.00b)
Net Margin = 19.46% (Net Income TTM 973.0m / Revenue TTM 5.00b)
Gross Margin = 76.28% ((Revenue TTM 5.00b - Cost of Revenue TTM 1.19b) / Revenue TTM)
Gross Margin QoQ = 74.28% (prev 73.95%)
Tobins Q-Ratio = 1.47 (Enterprise Value 22.89b / Total Assets 15.59b)
Interest Expense / Debt = 1.58% (Interest Expense 130.0m / Debt 8.25b)
Taxrate = 23.47% (157.0m / 669.0m)
NOPAT = 1.60b (EBIT 2.09b * (1 - 23.47%))
Current Ratio = 0.40 (Total Current Assets 1.08b / Total Current Liabilities 2.71b)
Debt / Equity = 3.16 (Debt 8.25b / totalStockholderEquity, last quarter 2.61b)
Debt / EBITDA = 3.03 (Net Debt 7.84b / EBITDA 2.59b)
Debt / FCF = 5.15 (Net Debt 7.84b / FCF TTM 1.52b)
Total Stockholder Equity = 2.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.26% (Net Income 973.0m / Total Assets 15.59b)
RoE = 39.86% (Net Income TTM 973.0m / Total Stockholder Equity 2.44b)
RoCE = 19.74% (EBIT 2.09b / Capital Employed (Equity 2.44b + L.T.Debt 8.17b))
RoIC = 12.67% (NOPAT 1.60b / Invested Capital 12.65b)
WACC = 6.53% (E(15.05b)/V(23.30b) * Re(9.45%) + D(8.25b)/V(23.30b) * Rd(1.58%) * (1-Tc(0.23)))
Discount Rate = 9.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -62.86 | Cagr: -2.52%
[DCF] Terminal Value 86.56% ; FCFF base≈1.40b ; Y1≈1.72b ; Y5≈2.94b
[DCF] Fair Price = 106.2 (EV 72.19b - Net Debt 7.84b = Equity 64.35b / Shares 605.7m; r=6.53% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 99.65 | EPS CAGR: 13.88% | SUE: 1.60 | # QB: 1
Revenue Correlation: 91.78 | Revenue CAGR: 11.10% | SUE: 1.50 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.69 | Chg30d=+1.47% | Revisions=+11% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.71 | Chg30d=+1.14% | Revisions=+11% | Analysts=6
EPS current Year (2027-03-31): EPS=2.88 | Chg30d=+0.45% | Revisions=+0% | GrowthEPS=+12.6% | GrowthRev=+7.5%
EPS next Year (2028-03-31): EPS=3.29 | Chg30d=+3.96% | Revisions=+25% | GrowthEPS=+14.1% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: +25%