Gen Digital (GEN) AI Stock Analysis

• Market Cap: $18.49B
• Dividend Yield: 1.68%
• Average Volume (3M): 5.18M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.87
• Revenue Growth: 3.23%
• EPS Growth: 7.79%
• Country: US
• Employees: 3,400
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.59
• Shares Outstanding: 620,229,740
• 10 Day Avg. Volume: 5,107,990
• 30 Day Avg. Volume: 5,179,416
• PEG Ratio: 14.18
• Price to Book (P/B): 7.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.93
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $31.40
• Price Target Upside: 5.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $33.00 ▲(10.70%Upside)

Gen Digital shows strong financial performance and positive technical indicators, driving its stock score. Despite a high level of debt and potential volatility from recent acquisitions, the company's effective management and strategic growth initiatives contribute positively. However, the high P/E ratio suggests the stock might be overvalued, which slightly tempers the overall score.

Positive Factors

Acquisition Impact

The MoneyLion acquisition is supportive of Gen’s long-term growth strategy.

Customer Base Expansion

Cross-sell momentum and higher membership adoption are driving growth, with 25% of customers now having more than one product.

Revenue Growth

Total revenue growth is accelerating, which will boost EPS growth.

Negative Factors

Bookings Growth

Bookings also slowed to 3% YoY cc, down from 5% last quarter.

Customer Retention

Customer retention downticked 50bps QoQ to ~77.5%, which likely raises questions about the quality of these newer subscribers.

Organic Growth Guidance

Lack of clarity around organic growth guidance may give investors some pause.

Gen Digital Business Overview & Revenue Model

Company Description

Gen Digital (GEN) is a leading technology company specializing in cybersecurity solutions and digital safety services. The company provides a wide range of products aimed at protecting consumers and businesses from online threats, including antivirus software, identity theft protection, and privacy solutions. Gen Digital operates in the cybersecurity sector and serves a global customer base with its innovative and comprehensive security products.

How the Company Makes Money

Gen Digital makes money primarily through the sale of its cybersecurity products and services. The company generates revenue by offering subscription-based services to both individual consumers and businesses, which include antivirus software, internet security suites, and identity protection plans. Key revenue streams include direct sales through its website, channel partnerships with retailers and distributors, and enterprise solutions for businesses. Additionally, Gen Digital leverages strategic partnerships and alliances with other technology companies to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Gen Digital Financial Statement Overview

Summary

Gen Digital demonstrates robust financial performance with strong revenue growth and profitability metrics. The company effectively manages its operations, as reflected in its impressive margins and cash flow conversion. However, the balance sheet indicates a high level of debt, which presents potential financial risk. Despite this, the company's growth trajectory and operational efficiency contribute positively to its financial outlook.

Income Statement

The income statement shows strong profitability with a consistent increase in total revenue, growing from $2.79 billion in 2022 to $3.94 billion in TTM. The gross profit margin is robust, exceeding 75% in TTM, while the net profit margin is healthy at around 16.3%. Revenue growth is impressive at approximately 3.23% year-over-year from 2024 to TTM. EBIT and EBITDA margins are also strong, highlighting efficient operations. These trends indicate a solid growth trajectory with high profitability.

Balance Sheet

The balance sheet depicts moderate financial health with a debt-to-equity ratio of approximately 3.64 in TTM, indicating high leverage but improved from 2022. The return on equity (ROE) is strong at about 28.34% due to high net income relative to equity. However, the equity ratio is low at around 14.64%, reflecting potential financial risk with low equity backing the total assets. Overall, while profitability is strong, high leverage poses a risk.

Cash Flow

Cash flow analysis indicates strong operating cash flow relative to net income with a ratio of approximately 1.90 in TTM. Free cash flow is positive and stable, although the free cash flow growth rate shows a decrease compared to previous years. The ability to convert earnings into cash is strong, supporting financial stability despite fluctuations in free cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2019	Mar 2018
Income Statement
Total Revenue	3.94B	3.81B	3.34B	4.73B	4.85B
Gross Profit	3.16B	3.08B	2.75B	3.68B	3.81B
EBITDA	1.61B	1.61B	1.56B	350.00M	1.33B
Net Income	643.00M	616.00M	1.35B	31.00M	1.16B
Balance Sheet
Total Assets	15.49B	15.77B	15.95B	15.94B	15.76B
Cash, Cash Equivalents and Short-Term Investments	1.01B	846.00M	750.00M	2.04B	2.16B
Total Debt	8.31B	8.65B	9.82B	4.45B	5.03B
Total Liabilities	13.23B	13.57B	13.75B	10.20B	10.71B
Stockholders Equity	2.27B	2.20B	2.20B	5.74B	5.06B
Cash Flow
Free Cash Flow	1.21B	2.04B	751.00M	1.29B	808.00M
Operating Cash Flow	1.22B	2.06B	757.00M	1.50B	950.00M
Investing Cash Flow	-100.00M	2.00M	-6.55B	-241.00M	-21.00M
Financing Cash Flow	-970.00M	-1.96B	4.68B	-1.21B	-3.48B

Gen Digital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEN, the sentiment is Positive. The current price of 29.81 is above the 20-day moving average (MA) of 29.45, above the 50-day MA of 28.11, and above the 200-day MA of 27.61, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEN.

Gen Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	78 Outperform	$23.77B	28.97	30.92%	―	6.40%	6.49%
QLYS	78 Outperform	$5.25B	29.42	40.23%	―	9.58%	12.41%
GEN	75 Outperform	$18.49B	28.93	28.80%	1.68%	3.23%	7.79%
CYBR	73 Outperform	$19.70B	1,777.39	-5.36%	―	35.12%	-191.84%
TENB	70 Neutral	$4.11B	―	-12.09%	―	11.79%	35.35%
OKTA	65 Neutral	$17.25B	152.37	2.08%	―	13.51%	―
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%

Gen Digital Corporate Events

Gen Digital Appoints John Chrystal to Board

On May 15, 2025, Peter Feld resigned from the Board of Directors of Gen Digital Inc., with no disagreements cited regarding the company’s operations or policies. Concurrently, John Chrystal was appointed as a new board member, bringing extensive experience from his previous roles in the financial services industry, including his tenure as Chairman of MoneyLion Inc. Chrystal’s appointment is expected to strengthen Gen Digital’s board with his financial expertise and leadership experience.

The most recent analyst rating on (GEN) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Gen Digital stock, see the GEN Stock Forecast page.