Infosys Ltd ADR INFY

Morningstar Rating
$22.79 +0.38 (1.70%)
View Full Chart

Company Report

Infosys Is a Moaty Enabler of Enterprise AI

Infosys is a leading global IT services vendor, with the typical menu of offerings from software implementation to digital transformation consulting to servicing entire business operations teams. We think Infosys has a narrow economic moat, similar to many of its peers, as we believe it benefits from switching costs and intangible assets, although we also see it benefiting from a cost advantage. While the company is experiencing labor shortages like the rest of the industry, we think its moat will be stable, and forays into higher-value industrials engineering will help ensure that Infosys does not miss out on substantial growth trends in the IT services industry.

Price vs Fair Value

INFY is trading at a 374% premium.
Price
$22.41
Fair Value
$26.00
Uncertainty
Medium
1-Star Price
$44.72
5-Star Price
$48.50
Economic Moat
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Capital Allocation
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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.

News

Trading Information

Previous Close Price
$22.41
Day Range
$22.5922.88
52-Week Range
$16.0423.48
Bid/Ask
$22.73 / $22.82
Market Cap
$94.39 Bil
Volume/Avg
9.3 Mil / 9.3 Mil

Key Statistics

Price/Earnings (Normalized)
31.56
Price/Sales
4.97
Dividend Yield (Trailing)
2.46%
Dividend Yield (Forward)
2.46%
Total Yield
2.46%

Company Profile

Infosys is a leading global IT services provider, with nearly 250,000 employees. Based in Bengaluru, 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.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
317,240

Competitors

Valuation

Metric
INFY
ACN
WIT
Price/Earnings (Normalized)
31.5630.4124.87
Price/Book Value
9.327.993.59
Price/Sales
4.973.543.12
Price/Cash Flow
24.6319.9318.46
Price/Earnings
INFY
ACN
WIT

Financial Strength

Metric
INFY
ACN
WIT
Quick Ratio
1.351.032.59
Current Ratio
1.891.162.70
Interest Coverage
169.1311.16
Quick Ratio
INFY
ACN
WIT

Profitability

Metric
INFY
ACN
WIT
Return on Assets (Normalized)
19.91%16.59%9.68%
Return on Equity (Normalized)
33.00%35.29%15.59%
Return on Invested Capital (Normalized)
30.02%27.22%11.89%
Return on Assets
INFY
ACN
WIT

Information Technology Services Industry Comparables

1-Day Chart
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Morningstar Rating for Stocks
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Economic Moat
Market Cap
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FIS
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CTSH
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Wipro Ltd ADR
WIT
QjsnybkywVlxnks$33.0 Bil
CGI Inc Class A
GIB
RkryzksbHndph$26.6 Bil
Broadridge Financial Solutions Inc
BR
RxwnkyjSmmkdlx$25.1 Bil
Jack Henry & Associates Inc
JKHY
CjjknbkksFpqx$13.4 Bil

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