Informatica Inc.
Informatica Inc. Fundamental Analysis
Informatica Inc. (INFA) shows weak financial fundamentals with a PE ratio of 721.59, profit margin of 0.62%, and ROE of 0.44%. The company generates $1.7B in annual revenue with weak year-over-year growth of 2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INFA's fundamental strength across five key dimensions:
Efficiency Score
WeakINFA struggles to generate sufficient returns from assets.
Valuation Score
WeakINFA trades at a premium to fair value.
Growth Score
WeakINFA faces weak or negative growth trends.
Financial Health Score
ExcellentINFA maintains a strong and stable balance sheet.
Profitability Score
ModerateINFA maintains healthy but balanced margins.
Key Financial Metrics
Is INFA Expensive or Cheap?
P/E Ratio
INFA trades at 721.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, INFA's PEG of 3.05 indicates potential overvaluation.
Price to Book
The market values Informatica Inc. at 3.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.74 times EBITDA. This signals the market has high growth expectations.
How Well Does INFA Make Money?
Net Profit Margin
For every $100 in sales, Informatica Inc. keeps $0.62 as profit after all expenses.
Operating Margin
Core operations generate 9.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.44 in profit for every $100 of shareholder equity.
ROA
Informatica Inc. generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Informatica Inc. generates strong operating cash flow of $474.79M, reflecting robust business health.
Free Cash Flow
Informatica Inc. generates strong free cash flow of $466.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.53 in free cash annually.
FCF Yield
INFA converts 6.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
721.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How INFA Stacks Against Its Sector Peers
| Metric | INFA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 721.59 | 35.19 | Worse (Expensive) |
| ROE | 0.44% | 1155.00% | Weak |
| Net Margin | 0.62% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.16 | 4.71 | Strong Liquidity |
| ROA | 0.20% | -314918.00% (disorted) | Weak |
INFA outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Informatica Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.65%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
104.99%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
11933.87%
Industry Style: Growth, Innovation, High Beta
High Growth