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Gen Digital (GEN) Stock Analysis

This is a peer-relative look at Gen Digital (GEN): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Gen Digital (GEN)
Profile ItemGEN
NameGen Digital Inc.
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustrySoftware
GICS Sub-IndustrySystems Software
Market Capitalization17.67 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJune 23, 1989
Security TypeCommon Stock

Price Performance

Cumulative Growth

GEN
GSPC
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Gen Digital (GEN) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Gen Digital (GEN) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Gen Digital (GEN) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Total Return (1Y)18.20%-3.00%
Total Return (3Y, Annualized)18.57%8.28%
Total Return (5Y, Annualized)5.70%-7.91%

Risk Profile

Drawdown History

GEN
GSPC
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Gen Digital (GEN) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Gen Digital (GEN) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Volatility (1Y, Annualized)43.30%61.69%
Beta (5Y)1.231.06
Max Drawdown (5Y)-48.41%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. GEN is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Sharpe Ratio (1Y)0.32-0.13
Sortino Ratio (1Y)0.50-0.19

Profitability

ROE (TTM)

Gen Digital (GEN) posts ROE of 46.40%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

GEN

Software & Services industry group

46.40%

Group distribution
Max
53.85%
GEN
46.40%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Largest peers
GEN
46.40%
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
PANW
1.74%
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Where Gen Digital (GEN) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Gen Digital (GEN) keeps 23.07% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

GEN

Software & Services industry group

23.07%

Group distribution
Max
41.17%
GEN
23.07%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
GEN
23.07%
SAP
20.41%
IBM
15.99%
PANW
2.67%
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Where Gen Digital (GEN) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Gen Digital (GEN) turns 37.40% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

GEN

Software & Services industry group

37.40%

Group distribution
Max
46.89%
GEN
37.40%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
GEN
37.40%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
PANW
5.40%
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Where Gen Digital (GEN) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
ROE (TTM)46.40%6.59%
ROA (TTM)8.94%2.45%
Net Margin (TTM)23.07%4.63%
Operating Margin (TTM)37.40%8.73%
Gross Margin (TTM)77.41%70.07%

Growth

Revenue Growth

Gen Digital (GEN) grew revenue 27.06%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Gen Digital (GEN): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

Gen Digital (GEN) grew earnings per share 52.43%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Gen Digital (GEN): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Revenue Growth (YoY)27.06%14.22%
Revenue Growth (3Y CAGR)14.66%13.52%
EPS Growth (YoY)52.43%7.85%
EPS Growth (3Y CAGR)-10.09%18.19%

Financial Strength

Current Ratio (MRQ)

Gen Digital (GEN) has current ratio of 0.37, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

GEN

Software & Services industry group

0.37

Group distribution
Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
GEN
0.37
Min
0.03
Largest peers
PLTR
7.10
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
GEN
0.37
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Where Gen Digital (GEN) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Gen Digital (GEN) has debt-to-equity ratio of 2.96, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

GEN

Software & Services industry group

2.96

Group distribution
GEN
2.96
Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
Largest peers
GEN
2.96
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
PANW
0.09
PLTR
0.02
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Where Gen Digital (GEN) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Current Ratio (MRQ)0.371.67
Debt / Equity (MRQ)2.960.40
Net Debt / EBITDA3.020.17

Dividends

Dividend Yield (TTM)

Gen Digital (GEN) has dividend yield of 1.63%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

GEN

Software & Services industry group

1.63%

Group distribution
GEN
1.63%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
GEN
1.63%
SAP
1.03%
MSFT
0.69%
PLTR
0.00%
PANW
0.00%
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Where Gen Digital (GEN) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Gen Digital (GEN) has payout ratio of 25.38%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

GEN

Software & Services industry group

25.38%

Group distribution
GEN
25.38%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
ORCL
31.35%
GEN
25.38%
MSFT
19.00%
PLTR
0.00%
PANW
0.00%
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Where Gen Digital (GEN) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
Dividend Yield (TTM)1.63%0.00%
Dividend Payout Ratio (TTM)25.38%0.00%

Valuation

P/E Ratio (TTM)

Gen Digital (GEN) trades at P/E ratio of 15.12, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

GEN

Software & Services industry group

15.12

Group distribution
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
GEN
15.12
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
GEN
15.12
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Where Gen Digital (GEN) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Gen Digital (GEN) trades at 3.38 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

GEN

Software & Services industry group

3.38

Group distribution
Max
17.91
Q3
8.78
Median
4.25
GEN
3.38
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
MSFT
11.37
SAP
6.84
ORCL
5.04
GEN
3.38
IBM
3.31
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Where Gen Digital (GEN) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Gen Digital (GEN) trades at 6.45 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

GEN

Software & Services industry group

6.45

Group distribution
Max
16.63
Q3
8.50
GEN
6.45
Median
4.30
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
PLTR
34.41
PANW
9.30
MSFT
8.38
IBM
6.52
GEN
6.45
ORCL
5.68
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Where Gen Digital (GEN) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Gen Digital (GEN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GENIndustry group median
P/E Ratio (TTM)15.1232.91
P/S Ratio (TTM)3.384.25
P/B Ratio (MRQ)6.454.30
Free Cash Flow Yield (TTM)10.25%3.98%