GICS Sector : Technology
Gen Digital Inc.provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan.It offers Norton 360, an integrated platform provides extensive cyber safety coverage and a subscription service providing protection for PCs, Macs, and mobile devices against malware, viruses, adware, ransomware, and other online threats on various platforms; and Norton and LifeLock identity theft protection solution that offers monitoring, alerts, and restoration services to its customers.
The company reported a strong second quarter, with revenue reaching $1.2 billion, up 25% year-over-year, driven by the growth of its consumer fintech business, MoneyLion, which expanded by 50%. The non-GAAP operating margin remained above 50%, and non-GAAP EPS came in at $0.62, beating estimates of $0.61. The company's Cyber Safety segment grew 5%, while the Trust-Based Solutions segment saw revenue grow 27% on a pro forma basis. The company's customer base now stands at over 77 million customers, up approximately 1 million sequentially.
Publication Date: Nov -09
The Trust-Based Solutions segment delivered a standout quarter, with revenue growth of 27% on a pro forma basis, and operating margin at 30%. The LifeLock business maintained stable growth, with highly retaining customers and strong customer NPS. MoneyLion's personal financial management solutions are scaling significantly, with strong gains in new active users and increasing product consumption.
The company raised its annual guidance, expecting full-year revenue in the range of $4.92 billion to $4.97 billion, reflecting 25% to 26% year-over-year growth. Non-GAAP EPS is expected to be in the range of $2.51 to $2.56, representing 12% to 15% annual EPS growth. Analysts estimate next year's revenue growth at 25.9%, indicating a consistent growth trajectory.
With a P/E Ratio of 27.89 and an EV/EBITDA of 19.73, the company's valuation appears to be reflecting its growth prospects. The Dividend Yield stands at 1.94%, indicating a relatively stable return for shareholders. The ROE of 24.67% suggests that the company is generating strong returns on equity. As the company continues to grow and expand its customer base, its valuation metrics will be closely watched to determine if the current price reflects the company's true value.
Gen to Present at the Barclays Global Technology Conference
Dec -04
Norton Neo, The World's First Safe AI-Native Browser, Now Available for Free Worldwide
Dec -02
Wall Street Analysts Think Gen Digital (GEN) Could Surge 30.38%: Read This Before Placing a Bet
Dec -01
You'd Better Watch Out: Avast Launches Animated Series to Help People Outsmart "Scam-mas" Tricksters
Dec -01
Creative Planning Has $2.20 Million Holdings in Gen Digital Inc. $GEN
Nov -26
Gen Digital Inc. $GEN Shares Acquired by Brandywine Global Investment Management LLC
Nov -23
Interpreting Gen Digital (GEN) International Revenue Trends
Nov -17
Wall Street Analysts Believe Gen Digital (GEN) Could Rally 28.67%: Here's is How to Trade
Nov -14
Gen Digital Inc.'s Consumer Security segment growth of 5.5% is driven by increasing cyber threats, rising demand for online protection, and growing adoption of digital payments. Additionally, the shift to remote work and online learning has boosted demand for security solutions, while the company's innovative products and strategic partnerships have enhanced its market position.
Gen Digital Inc.'s Identity and Information Protection segment growth of 5.8% is driven by increasing demand for cybersecurity solutions, rising threat of data breaches, and growing need for compliance with regulations such as GDPR and HIPAA. Additionally, the shift to cloud-based services and IoT devices has created new vulnerabilities, further fueling growth in this segment.
Gen Digital Inc.'s legacy segment growth of 4.2% is driven by increasing demand for cybersecurity solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and effective sales execution have contributed to this growth.
A comprehensive cybersecurity solution that protects devices from malware, viruses, and other online threats.
An all-in-one cybersecurity suite that offers antivirus protection, password management, and online backup.
A identity theft protection service that monitors and alerts users of potential identity theft.
A virtual private network (VPN) that encrypts internet connections and protects online privacy.
A PC optimization tool that improves computer performance, frees up storage, and fixes common issues.
Gen Digital Inc. faces moderate threat from substitutes, as customers have limited alternatives for digital transformation services.
Gen Digital Inc. has a diverse customer base, reducing the bargaining power of individual customers.
Gen Digital Inc. relies on a few key suppliers for technology and infrastructure, giving them moderate bargaining power.
The digital transformation industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions.
The digital transformation industry is highly competitive, with many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 79.66% |
| Debt Cost | 5.79% |
| Equity Weight | 20.34% |
| Equity Cost | 9.48% |
| WACC | 6.54% |
| Leverage | 391.62% |
Value: 4.9
Growth: 4.9
Quality: 7.1
Yield: 4.0
Momentum: 3.0
Volatility: 10.0
1-Year Total Return ->
Value: 2.8
Growth: 4.8
Quality: 9.2
Yield: 0.0
Momentum: 9.0
Volatility: 7.7
1-Year Total Return ->
Value: 2.3
Growth: 7.9
Quality: 9.2
Yield: 0.0
Momentum: 6.0
Volatility: 7.7
1-Year Total Return ->
Value: 3.5
Growth: 4.6
Quality: 7.0
Yield: 4.0
Momentum: 5.0
Volatility: 8.3
1-Year Total Return ->
Value: 3.1
Growth: 8.7
Quality: 6.8
Yield: 0.0
Momentum: 2.0
Volatility: 7.3
1-Year Total Return ->
Value: 4.7
Growth: 6.9
Quality: 4.0
Yield: 0.0
Momentum: 4.0
Volatility: 3.0
1-Year Total Return ->