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Infosys (INFY) Stock Analysis

This is a peer-relative look at Infosys (INFY): 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

Infosys (INFY) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Infosys (INFY)
Profile ItemINFY
NameInfosys Ltd. ADR
Country/RegionIndia
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryIT Consulting & Other Services
Market Capitalization50.63 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 11, 1999
Security TypeADR

Price Performance

Cumulative Growth

INFY
GSPC
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Infosys (INFY) 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 Infosys (INFY) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Total Return (1Y)-23.13%-3.00%
Total Return (3Y, Annualized)-6.27%8.28%
Total Return (5Y, Annualized)-9.51%-7.91%

Risk Profile

Drawdown History

INFY
GSPC
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Infosys (INFY) 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 Infosys (INFY) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Volatility (1Y, Annualized)42.11%61.69%
Beta (5Y)0.871.06
Max Drawdown (5Y)-54.40%-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. INFY 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

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Sharpe Ratio (1Y)-0.65-0.13
Sortino Ratio (1Y)-0.91-0.19

Profitability

ROE (TTM)

Infosys (INFY) posts ROE of 29.95%, 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.

INFY

Software & Services industry group

29.95%

Group distribution
Max
53.85%
INFY
29.95%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Largest peers
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
INFY
29.95%
SAP
18.18%
PANW
1.74%
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Where Infosys (INFY) 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)

Infosys (INFY) keeps 16.22% 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.

INFY

Software & Services industry group

16.22%

Group distribution
Max
41.17%
INFY
16.22%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
SAP
20.41%
INFY
16.22%
IBM
15.99%
PANW
2.67%
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Where Infosys (INFY) 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)

Infosys (INFY) turns 20.97% 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.

INFY

Software & Services industry group

20.97%

Group distribution
Max
46.89%
INFY
20.97%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
INFY
20.97%
IBM
16.97%
PANW
5.40%
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Where Infosys (INFY) 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

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
ROE (TTM)29.95%6.59%
ROA (TTM)16.15%2.45%
Net Margin (TTM)16.22%4.63%
Operating Margin (TTM)20.97%8.73%
Gross Margin (TTM)29.75%70.07%

Growth

Revenue Growth

Infosys (INFY) grew revenue 4.57%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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

EPS Growth

Infosys (INFY) grew earnings per share 5.26%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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

Growth Metrics

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Revenue Growth (YoY)4.57%14.22%
Revenue Growth (3Y CAGR)3.44%13.52%
EPS Growth (YoY)5.26%7.85%
EPS Growth (3Y CAGR)4.06%18.19%

Financial Strength

Current Ratio (MRQ)

Infosys (INFY) has current ratio of 1.97, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

INFY

Software & Services industry group

1.97

Group distribution
Max
5.11
Q3
2.77
INFY
1.97
Median
1.67
Q1
1.01
Min
0.03
Largest peers
PLTR
7.10
INFY
1.97
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
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Where Infosys (INFY) 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)

Infosys (INFY) has debt-to-equity ratio of 0.09, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

INFY

Software & Services industry group

0.09

Group distribution
Max
2.52
Q3
1.13
Median
0.40
INFY
0.09
Q1
0.07
Min
0.00
Largest peers
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
PANW
0.09
INFY
0.09
PLTR
0.02
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Where Infosys (INFY) 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

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Current Ratio (MRQ)1.971.67
Debt / Equity (MRQ)0.090.40
Net Debt / EBITDA-0.630.17

Dividends

Dividend Yield (TTM)

Infosys (INFY) has dividend yield of 4.14%, 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.

INFY

Software & Services industry group

4.14%

Group distribution
INFY
4.14%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
INFY
4.14%
IBM
2.73%
ORCL
1.74%
SAP
1.03%
MSFT
0.69%
PLTR
0.00%
PANW
0.00%
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Where Infosys (INFY) 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)

Infosys (INFY) has payout ratio of 65.45%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

INFY

Software & Services industry group

65.45%

Group distribution
INFY
65.45%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
INFY
65.45%
IBM
57.51%
SAP
36.45%
ORCL
31.35%
MSFT
19.00%
PLTR
0.00%
PANW
0.00%
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Where Infosys (INFY) 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

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
Dividend Yield (TTM)4.14%0.00%
Dividend Payout Ratio (TTM)65.45%0.00%

Valuation

P/E Ratio (TTM)

Infosys (INFY) trades at P/E ratio of 15.43, 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.

INFY

Software & Services industry group

15.43

Group distribution
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
INFY
15.43
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
INFY
15.43
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Where Infosys (INFY) 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)

Infosys (INFY) trades at 2.49 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.

INFY

Software & Services industry group

2.49

Group distribution
Max
17.91
Q3
8.78
Median
4.25
INFY
2.49
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
MSFT
11.37
SAP
6.84
ORCL
5.04
IBM
3.31
INFY
2.49
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Where Infosys (INFY) 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)

Infosys (INFY) trades at 9.80 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

INFY

Software & Services industry group

9.80

Group distribution
Max
16.63
INFY
9.80
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
PLTR
34.41
INFY
9.80
PANW
9.30
MSFT
8.38
IBM
6.52
ORCL
5.68
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Where Infosys (INFY) 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

Infosys (INFY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: INFYIndustry group median
P/E Ratio (TTM)15.4332.91
P/S Ratio (TTM)2.494.25
P/B Ratio (MRQ)9.804.30
Free Cash Flow Yield (TTM)6.52%3.98%