GEN
Gen Digital
$28.75
▲ 2.3%Updated Aug 7, 11:30 AM ET
GEN at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 79/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 17.6% over the last 12 months
Market Cap
$16.07B
P/E
17.8x
Forward P/E (est.)
12.71x
ROE
39.9%
Revenue Growth
27.1%
EPS Growth
53.4%
Profit Margin
19.5%
FCF Yield
12.1%
Debt / Equity
3.14x
ROIC
15.0%
Interest Coverage
—
Current Ratio
0.4x
Dividend Yield
2.0%
Implied Growth (rev. DCF)
-0.4%
Rating Score
79/100
Gen Digital (GEN) is a large-cap company in the Systems Software industry, part of the Information Technology sector of the S&P 500, with a market value around $16.07B.
In its latest reported year it generated about $5.00B in revenue and $973.00M in net profit.
Our model rates GEN Strong (79/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
79.8% average over the last 3 years
±2.4 pts around 81.9% across 10 years
grew in 7 of the last 9 year-over-year periods
positive in 8 of 10 years
15.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what GEN's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. GEN trades near $28.75, above its 50-day average ($23.38) and 200-day average ($24.44). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. GEN's is $0.97 (~3.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month GEN found buyers near $22.46 (support) and sellers near $27.23 (resistance); its 52-week range is $17.78–$32.22. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
15.6%
Revenue moved from $4.02B in 2017 to $5.00B in 2026, a 2.5% compound annual growth rate. The most recent year grew a strong 27.1% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
78.5%
Operating Margin
42.4%
Net Margin
19.5%
ROE
39.9%
Gen Digital keeps about 19.5% of each sales dollar as net profit, with a 78.5% gross margin and 42.4% operating margin. Return on equity is 39.9% and return on invested capital about 15.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$8.20B
Net Debt
$7.19B
Net Debt / EBITDA
3.39x
Debt / Equity
3.14x
Leverage: debt-to-equity is 3.1x, with a current ratio of 0.4x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $8.20B of total debt against $1.01B of cash.
Operating CF
$1.54B
Free Cash Flow
$1.52B
FCF Margin
30.5%
In the latest year Gen Digital produced about $1.54B of operating cash flow and $1.52B of free cash flow after capital spending. That is a free-cash-flow yield of about 12.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.0%
Per share (latest FY)
$0.50
Total paid (latest FY)
$312.00M
History on record
10 years
dividend uses 20% of free cash flow
32% of net income paid out
no current raise streak
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
17.8x
P/S
2.96x
P/B
5.13x
EV / EBITDA
—
GEN trades at 17.8x trailing earnings (about 12.7x on estimated forward earnings), 3.0x sales, and 5.1x book value. Reverse-engineering today's price implies the market expects roughly -0.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$104.69
Current price
$28.75
Starting FCF (latest 10-K)
$1.52B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where GEN sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How GEN stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), GEN ranks #10 of 230 by our overall rating. It trades at a discount versus the sector on earnings (17.8x P/E vs. 38.9x median) with a higher return on equity (39.9% vs. 17.5%) and faster revenue growth (27.1% vs. 17.7%).
P/E vs sector
17.8x
median 38.9x
ROE vs sector
39.9%
median 17.5%
Growth vs sector
27.1%
median 17.7%
Sector rank
#10
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $28.75 today · expected CAGR 17% – 29%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $6.35B | $8.06B | $10.24B | $13.01B | $16.52B |
| Net income | $1.21B | $1.53B | $1.95B | $2.47B | $3.14B |
| EPS | $2.16 | $2.74 | $3.48 | $4.42 | $5.62 |
| Share price (low) | $23.75 | $30.16 | $38.30 | $48.64 | $61.78 |
| Share price (high) | $38.86 | $49.35 | $62.68 | $79.60 | $101.09 |
| CAGR (low–high) | -17% / 35% | 2% / 31% | 10% / 30% | 14% / 29% | 17% / 29% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for GEN:
- Revenue is growing 27.1% a year, a sign of real demand.
- High net margins (19.5%) point to pricing power or efficiency.
- Strong return on equity (39.9%) shows capital is put to work well.
- Healthy free-cash-flow yield (~12.1%) funds buybacks and dividends.
- Pays a 2.0% dividend on top of any price gains.
- Our model's overall read is Strong (79/100).
The case against GEN:
- Elevated leverage (debt/equity 3.1x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 3.1x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Gen Digital is a large-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 17.8x earnings, which our model scores Strong (79/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 16 Wall Street analysts covering GEN recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+6 pts of buy ratings).
Latest SEC Filings
GEN's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
GEN — frequently asked questions
Is GEN a good stock to buy?
We don't give buy or sell advice. Our model rates Gen Digital Strong (79/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is GEN's rating on The Stocks School?
Gen Digital currently scores 79/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does GEN's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Gen Digital's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for GEN calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this GEN analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell GEN. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.