Gartner, Inc.
Gartner, Inc. Fundamental Analysis
Gartner, Inc. (IT) shows strong financial fundamentals with a PE ratio of 14.40, profit margin of 11.22%, and ROE of 74.65%. The company generates $6.5B in annual revenue with moderate year-over-year growth of 6.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IT's fundamental strength across five key dimensions:
Efficiency Score
WeakIT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIT trades at attractive valuation levels.
Growth Score
ExcellentIT delivers strong and consistent growth momentum.
Financial Health Score
WeakIT carries high financial risk with limited liquidity.
Profitability Score
ModerateIT maintains healthy but balanced margins.
Key Financial Metrics
Is IT Expensive or Cheap?
P/E Ratio
IT trades at 14.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IT's PEG of -0.93 indicates potential undervaluation.
Price to Book
The market values Gartner, Inc. at 32.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.23 times EBITDA. This is generally considered low.
How Well Does IT Make Money?
Net Profit Margin
For every $100 in sales, Gartner, Inc. keeps $11.22 as profit after all expenses.
Operating Margin
Core operations generate 15.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $74.65 in profit for every $100 of shareholder equity.
ROA
Gartner, Inc. generates $9.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gartner, Inc. produces operating cash flow of $1.29B, showing steady but balanced cash generation.
Free Cash Flow
Gartner, Inc. generates strong free cash flow of $1.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.32 in free cash annually.
FCF Yield
IT converts 11.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
32.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
10.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.75
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How IT Stacks Against Its Sector Peers
| Metric | IT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.40 | 34.79 | Better (Cheaper) |
| ROE | 74.65% | 1185.00% | Weak |
| Net Margin | 11.22% | -133093.00% (disorted) | Strong |
| Debt/Equity | 10.47 | 0.43 | Weak (High Leverage) |
| Current Ratio | 1.00 | 4.90 | Weak Liquidity |
| ROA | 9.02% | -324805.00% (disorted) | Weak |
IT outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gartner, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.47%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
520.53%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
203.24%
Industry Style: Growth, Innovation, High Beta
High Growth