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
Trailing Returns
Performance at a Glance
| Metric | Current stock: IT | Industry group median |
|---|---|---|
| 1-Year Return | -64.17% | -18.34% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: IT | Industry group median |
|---|---|---|
| 1-Year Volatility | 52.53% | 58.21% |
| Beta | 0.95 | 1.14 |
Company Profile
| Profile Item | IT |
|---|---|
| Name | Gartner Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | IT Services |
| GICS Sub-Industry | IT Consulting & Other Services |
| Market Capitalization | 9.92 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | October 5, 1993 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: IT | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 14.64 | 30.10 |
| Price-to-Sales Ratio (TTM) | 1.53 | 3.97 |
| Price-to-Book Ratio (MRQ) | 158.64 | 3.96 |
| Free Cash Flow Yield | 10.73% | 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%
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%
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%
Profitability at a Glance
| Metric | Current stock: IT | Industry 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
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
Financial Strength at a Glance
| Metric | Current stock: IT | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.94 | 1.73 |
| Debt-to-Equity Ratio (MRQ) | 52.93 | 0.32 |
| Net Debt / EBITDA | 1.26 | -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%
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%
Dividends at a Glance
| Metric | Current stock: IT | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |