Gen Digital Inc. (GEN)
Information Technology · Systems Software · US stock · S&P 500 component
$24.89
▲ +0.77 (3.19%)
Fair valueUndervalued
$34 +36.9% to fair value
$17fair band $29–$41$51
Day's range
$24.01 – $25.21
52-week range
$17.78 – $31.65
About Gen Digital Inc.
Gen Digital sells consumer cyber safety software under brands such as Norton, Avast, LifeLock and others. Its products protect devices and online activity and help guard against identity theft, and it also offers privacy tools such as virtual private networks. The company earns money from subscriptions paid by consumers, often renewed automatically, and from partner distribution. Retention of subscribers and the cost of acquiring them are important to the business.
Over the latest twelve months the company reported revenue of $5.1 billion, and annual revenue rose by 14.7% on average across three years. Profitability at the operating level stands at 41.7%, and return on invested capital came to 14%. The company carries net debt of 2.9 times its EBITDA. A dividend is paid, with a yield of 2.0%. It carries an X-Ray Score of 59 out of 100.
Price chart
52-wk range $17.78 – $31.65Volume 7,275,812Daily, split-adjusted
Vitals
Market cap$15.0B
52-week range$17.78 – $31.65
Volume (last day)7,275,812
P/E (TTM)14.6
EBIT / EV yield9.4%
Free-cash-flow yield10.3%
Dividend yield2.0%
Revenue (TTM)$5.1B
Net income (TTM)$1.1B
Operating margin41.7%
Return on capital14.5%
Debt incl. leases$8.2B
Cash & securities$564M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$34middle half of models $26 – $45
Undervalued
+36.9% to fair value
Average of the 9 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $25
Undervalued < $29Fair $29 – $41Overvalued > $41
P/E multiple
$26
P/B multiple
$30
P/S multiple · not used
$53
EV/EBITDA multiple · not used
$85
EV/EBIT multiple · not used
$89
EV/revenue multiple
$45
10-year DCF, EBITDA exit · not used
$59
5-year DCF, EBITDA exit · not used
$53
10-year DCF, revenue exit · not used
$55
5-year DCF, revenue exit
$48
10-year DCF, growth exit
$49
5-year DCF, growth exit
$41
Dividend discount, stable
$12
Dividend discount, multi-stage
$16
Earnings power value
$39
Growth the price implies
7.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
95/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.4%
Free-cash-flow yield10.3%
Fair value vs price1.4×
Growth
Fair
63/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)14.7%
EPS growth (3y)-9.8%
Growth consistency100%
Profitability
Weak
45/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital14.5%
Operating margin41.7%
Gross profitability25.3%
Financial health
Weak
38/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA2.9×
Interest coverNo interest cost
Dividends
Weak
42/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield2.0%
Dividends vs free cash flow19%
Dividend growth-0.2%
Quarterly results: last 6 quarters
+4.8%
Mar '25
+30.3%
Jul '25
+25.3%
Oct '25
+25.8%
Jan '26
+27.0%
Apr '26
+6.3%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.3B, diluted EPS $0.36.
Compare with peers
MSFT Microsoft Corp61 FTNT Fortinet, Inc.59 NOW ServiceNow, Inc.48 TWLO Twilio Inc43Other Systems Software companies by X-Ray Score.
SWOT analysis: Gen Digital Inc.
Strengthsinside the company
- Operating margin of 41.7% is well above the 8.7% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 14.7% a year over three years (median 17.3% for industry peers).
- Free cash flow equals 10.3% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Earnings per share have declined 9.8% a year over three years.
- Altman Z-score of 0.6 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Revenue growth picked up to 27.1% last year from 14.7% a year over three years.
- Trades at 14.3x earnings, 82% below the 78.8x median of industry peers.
- The price is 37% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare GEN with peers and sector
Medians of 6 Systems Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): MSFT 61, PANW 33, CRWD 33, NOW 48, FTNT 59, TWLO 43.
| Metric | GEN | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 59 | 46 | 50 |
| Valuation | 95 | 38 | 50 |
| Growth | 63 | 66 | 54 |
| Profitability | 45 | 41 | 50 |
| Financial health | 38 | 44 | 50 |
| Dividends | 42 | – | 51 |
Sector leaders: highest X-Ray Score in Information Technology
GEN ranks #17 of 75 in Information Technology and #3 of 7 in Systems Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for GEN
Each factor is rated by where GEN stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 14 Good · 5 Average · 3 Bad of 22
Growth: 2 · 0 · 1
Profitability: 3 · 2 · 0
Financial strength: 2 · 0 · 2
Valuation: 4 · 1 · 0
Cash flow: 2 · 2 · 0
Efficiency: 1 · 0 · 0
| Factor | GEN | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +14.7% | Good beats 72% | +9.7% | – | – |
| Revenue growth, last year | +27.1% | Good beats 82% | +13.7% | +14.6% | ▲ Better |
| EPS growth, 3 years a year | −9.8% | Bad beats 15% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 78.0% | Good beats 85% | 57.8% | 80.8% | ≈ In line |
| Operating margin | 41.7% | Good beats 86% | 20.3% | 36.4% | ▲ Better |
| Net margin | 20.7% | Average beats 55% | 17.8% | 19.5% | ≈ In line |
| Return on invested capital | 14.5% | Average beats 35% | 19.4% | – | – |
| Return on equity | 39.6% | Good beats 76% | 21.0% | 32.8% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 2.9x | Bad beats 9% | 0.8x | 3.6x | ▲ Better |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 0.47 | Bad beats 1% | 1.57 | 0.50 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 14.3x | Good beats 94% | 33.6x | 19.0x | ▲ Better |
| Price / book | 5.7x | Average beats 64% | 8.3x | 5.8x | ≈ In line |
| Price / sales | 3.0x | Good beats 85% | 6.9x | 3.8x | ▲ Better |
| EV / EBITDA | 8.7x | Good beats 95% | 24.7x | 12.8x | ▲ Better |
| Free cash flow yield | 10.3% | Good beats 96% | 3.4% | 7.3% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 30.5% | Good beats 74% | 22.3% | 30.6% | ≈ In line |
| Cash from operations / net income | 1.49 | Average beats 59% | 1.39 | 1.59 | ≈ In line |
| Free cash flow growth, 3 years a year | +26.6% | Good beats 68% | +15.4% | – | – |
| Accruals (lower is better) | −3.3% | Average beats 39% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 27 days | Good beats 92% | 63 days | 16 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 9 Good · ● 3 Average · ● 4 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 58/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $2.8B | $3.3B | $3.8B | $3.9B | $5.0B |
| Operating income | $1.0B | $1.2B | $1.1B | $1.6B | $2.1B |
| Net income | $836M | $1.3B | $607M | $643M | $973M |
| Operating cash flow | $974M | $757M | $2.1B | $1.2B | $1.5B |
| Operating margin | 35.9% | 36.4% | 29.2% | 40.9% | 42.4% |
| Free cash flow | $968M | $751M | $2.0B | $1.2B | $1.5B |
| Diluted EPS | $1.41 | $2.14 | $0.95 | $1.03 | $1.57 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
6 bullish · 1 neutral · 9 bearish
Weekly
Bearish
3 bullish · 1 neutral · 8 bearish
Monthly
Neutral
3 bullish · 1 neutral · 4 bearish
Moving averages (daily)
| SMA 10 | 23.99 | Bullish |
| EMA 10 | 24.02 | Bullish |
| SMA 20 | 22.99 | Bullish |
| EMA 20 | 24.26 | Bullish |
| SMA 50 | 26.77 | Bearish |
| EMA 50 | 25.49 | Bearish |
| SMA 100 | 26.39 | Bearish |
| EMA 100 | 25.63 | Bearish |
| SMA 200 | 24.19 | Bullish |
| EMA 200 | 25.37 | Bearish |
Oscillators (daily)
| RSI (14) | 51.71 | Neutral |
| MACD (12, 26) | -0.59 | Bearish |
| Momentum (12) | 9.17 | Bullish |
| Stochastic %K (14) | 90.14 | Bearish |
| Williams %R (14) | -9.86 | Bearish |
| CCI (20) | 117.2 | Bearish |
Pivot points (classic, last session)
S3 23.00 | S2 23.51 | S1 24.20 | Pivot 24.70 | R1 25.39 | R2 25.90 | R3 26.59 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.50 USD
Yield on today's price
2.01%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 | |
| 0.1250 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold GEN
| ETF | Share of the fund |
|---|---|
| BUG Global X Cybersecurity | 4.47% |
| CIBR First Trust NASDAQ Cybersecurity | 2.14% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.52% |
| VFLO VictoryShares Free Cash Flow | 1.25% |
| DIVB iShares U.S. Dividend and Buyback | 0.98% |
| XSW SPDR S&P Software & Services | 0.74% |
| COWG Pacer US Large Cap Cash Cows Growth Le... | 0.71% |
| IGV iShares Expanded Tech-Software Sector | 0.52% |
The eight funds with the largest weight in GEN among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
GEN stock splits
GEN has split its stock 4 times since 1991. The latest was a 2-for-1 split on 1 Dec 2004.
Full GEN stock split history →GEN SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations; Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.