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Gartner (IT) Stock Analysis

Here is a fundamental analysis of Gartner (IT), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

IT
GSPC
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Gartner (IT) 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 Gartner (IT) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
1-Year Return-64.17%-18.34%

Risk

Drawdown

IT
GSPC
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Gartner (IT) 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.

Risk at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
1-Year Volatility52.53%58.21%
Beta0.951.14

Company Profile

Company profile fields for Gartner (IT)
Profile ItemIT
NameGartner Inc.
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryIT Consulting & Other Services
Market Capitalization9.92 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 5, 1993
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Gartner (IT) trades at P/E ratio of 14.64, 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.

IT

Software & Services industry group

14.64

Group distribution
Max
106.12
Q3
56.70
Median
30.10
Q1
15.65
IT
14.64
Min
0.39
Largest peers
PANW
243.15
PLTR
143.81
ORCL
31.53
IBM
24.09
MSFT
23.29
SAP
22.83
IT
14.64
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Where Gartner (IT) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Gartner (IT) trades at 1.53 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

IT

Software & Services industry group

1.53

Group distribution
Max
18.75
Q3
8.80
Median
3.97
Q1
2.05
IT
1.53
Min
0.02
Largest peers
PLTR
58.73
PANW
21.49
MSFT
9.12
ORCL
7.86
SAP
5.18
IBM
3.71
IT
1.53
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Where Gartner (IT) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Gartner (IT) trades at 158.64 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

IT

Software & Services industry group

158.64

Group distribution
IT
158.64
Max
16.52
Q3
8.04
Median
3.96
Q1
1.96
Min
-6.70
Largest peers
IT
158.64
PLTR
36.31
ORCL
15.78
PANW
8.22
IBM
7.76
MSFT
7.01
SAP
3.66
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Where Gartner (IT) 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 at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
Price-to-Earnings Ratio (TTM)14.6430.10
Price-to-Sales Ratio (TTM)1.533.97
Price-to-Book Ratio (MRQ)158.643.96
Free Cash Flow Yield10.73%4.68%

Profitability

Return on Equity (TTM)

Gartner (IT) posts ROE of 94.88%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

IT

Software & Services industry group

94.88%

Group distribution
IT
94.88%
Max
53.38%
Q3
16.49%
Median
5.29%
Q1
-13.69%
Min
-58.43%
Largest peers
IT
94.88%
ORCL
53.38%
IBM
35.77%
MSFT
34.01%
PLTR
32.59%
SAP
16.35%
PANW
4.83%
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Where Gartner (IT) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Gartner (IT) keeps 11.44% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

IT

Software & Services industry group

11.44%

Group distribution
Max
44.20%
Q3
14.93%
IT
11.44%
Median
3.32%
Q1
-6.49%
Min
-34.99%
Largest peers
PLTR
43.67%
MSFT
39.34%
ORCL
25.37%
SAP
19.58%
IBM
15.61%
IT
11.44%
PANW
7.95%
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Where Gartner (IT) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Gartner (IT) turns 20.50% 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.

IT

Software & Services industry group

20.50%

Group distribution
Max
60.45%
IT
20.50%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%
Largest peers
MSFT
46.33%
PLTR
46.18%
ORCL
36.26%
SAP
30.03%
IT
20.50%
IBM
13.81%
PANW
-2.47%
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Where Gartner (IT) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
Return on Equity (TTM)94.88%5.29%
Return on Assets (TTM)9.38%1.62%
Net Profit Margin (TTM)11.44%3.32%
Operating Profit Margin (TTM)20.50%4.46%
Gross Profit Margin (TTM)68.99%68.69%

Financial Strength

Current Ratio (MRQ)

Gartner (IT) has current ratio of 0.94, 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.

IT

Software & Services industry group

0.94

Group distribution
Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
IT
0.94
Min
0.03
Largest peers
PLTR
6.91
MSFT
1.28
ORCL
1.12
SAP
1.07
IT
0.94
PANW
0.86
IBM
0.80
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Where Gartner (IT) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Gartner (IT) has debt-to-equity ratio of 52.93, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

IT

Software & Services industry group

52.93

Group distribution
IT
52.93
Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00
Largest peers
IT
52.93
ORCL
3.63
IBM
2.11
MSFT
0.30
SAP
0.17
PANW
0.08
PLTR
0.02
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Where Gartner (IT) 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 at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
Current Ratio (MRQ)0.941.73
Debt-to-Equity Ratio (MRQ)52.930.32
Net Debt / EBITDA1.26-0.09

Dividends

Dividend Yield (TTM)

Gartner (IT) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

IT

Software & Services industry group

0.00%

Group distribution
IT
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.48%
SAP
1.78%
ORCL
1.09%
MSFT
0.93%
IT
0.00%
PLTR
0.00%
PANW
0.00%
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Where Gartner (IT) 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)

Gartner (IT) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

IT

Software & Services industry group

0.00%

Group distribution
IT
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
59.47%
SAP
37.15%
ORCL
34.31%
MSFT
20.73%
IT
0.00%
PLTR
0.00%
PANW
0.00%
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Where Gartner (IT) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Gartner (IT) metric values compared with Software & Services industry-group medians
MetricCurrent stock: ITIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%