Gen Digital Inc. Contingent Value Rights
Gen Digital Inc. Contingent Value Rights Fundamental Analysis
Gen Digital Inc. Contingent Value Rights (GENVR) shows moderate financial fundamentals with a PE ratio of 16.60, profit margin of 19.46%, and ROE of 39.86%. The company generates $5.1B in annual revenue with moderate year-over-year growth of 3.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GENVR's fundamental strength across five key dimensions:
Efficiency Score
WeakGENVR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGENVR trades at attractive valuation levels.
Growth Score
WeakGENVR faces weak or negative growth trends.
Financial Health Score
WeakGENVR carries high financial risk with limited liquidity.
Profitability Score
ExcellentGENVR achieves industry-leading margins.
Key Financial Metrics
Is GENVR Expensive or Cheap?
P/E Ratio
GENVR trades at 16.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GENVR's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values Gen Digital Inc. Contingent Value Rights at 6.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.21 times EBITDA. This is generally considered low.
How Well Does GENVR Make Money?
Net Profit Margin
For every $100 in sales, Gen Digital Inc. Contingent Value Rights keeps $19.46 as profit after all expenses.
Operating Margin
Core operations generate 42.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.86 in profit for every $100 of shareholder equity.
ROA
Gen Digital Inc. Contingent Value Rights generates $6.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gen Digital Inc. Contingent Value Rights generates strong operating cash flow of $1.57B, reflecting robust business health.
Free Cash Flow
Gen Digital Inc. Contingent Value Rights generates strong free cash flow of $1.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.53 in free cash annually.
FCF Yield
GENVR converts 9.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How GENVR Stacks Against Its Sector Peers
| Metric | GENVR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.60 | 38.03 | Better (Cheaper) |
| ROE | 39.86% | 1015.00% | Weak |
| Net Margin | 19.46% | 6012661704.00% | Weak |
| Debt/Equity | 3.16 | 0.40 | Weak (High Leverage) |
| Current Ratio | 0.40 | 5.05 | Weak Liquidity |
| ROA | 6.24% | -300416.00% (disorted) | Weak |
GENVR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gen Digital Inc. Contingent Value Rights's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.52%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-83.51%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
241.35%
Industry Style: Growth, Innovation, High Beta
High Growth