Stock analysis · Bull Rankings model

GEN analysis

Gen Digital Inc.Software - Infrastructure. Scored on the same transparent model behind the daily rankings.

GEN
Gen Digital Inc. · Software - Infrastructure
FCF$1.5bC+
Rev+20.2%A-
D/E3.08D
P/E16.9xA-
PEG1.39B
76.5Score
$28.93$17.3B
1Y Target$32.11Analyst consensus · 10 analysts
5Y Target$47.01Compound horizon
10Y Target$69.73Long-dated conviction
FCF$1.5bTTM
C+
FCF $1.5b — respectable but not differentiating
Rev+20.2%TTM YoY
A-
Revenue +20.2% — strong growth, well above S&P median (~7%)
D/E3.08
D
D/E 3.08 — most levered decile in Technology (≈95th pctile)
P/E16.9x
A-
P/E 16.9 — cheaper than most Technology peers (≈25th pctile)
PEG1.39
B
PEG 1.39 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 76.5
Quality80.1
Growth92.1
Value60.6
Why this score
  • Buying back stock
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
8% off the 12-month high
vs DCF fair value29% belowest. fair value ~$41
What the price assumes: free cash flow compounding at ~0% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability25% · Bgross profit ÷ total assets (Novy-Marx)
ROIC15.5% · A-return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Gen Digital’s subscription engine across Norton, Avast and LifeLock is fueling a 27.1% YoY revenue growth while delivering a 19.5% profit margin and generating $1.5 B of free cash flow this year; the combination of high‑margin recurring revenue and a 37.3% ROE makes the business a rare high‑quality growth engine, and the upside rests on compounding that subscription base over the next decade.
Moat
The company’s moat lies in its entrenched identity‑protection and security suite sold to individuals, families and small businesses, where switching costs are high because customers bundle Norton, Avast, LifeLock and CCleaner under a single account; this cross‑sell capability drives pricing power that underpins the 37.3% ROE, while the brand‑wide platform makes it hard for new entrants to replicate the integrated trust ecosystem.
Risk
Bears point to the heavy leverage – a debt‑to‑equity of 3.16 – and a market price that assumes a zero‑percent free‑cash‑flow growth for the next ten years, a stark mismatch to the 27.1% revenue expansion; a slowdown in subscription renewals or a rise in financing costs would force the P/E of 17.8 to look stretched and could trigger a sell‑off, especially if the implied growth remains unrealistic.
Horizon
1-3 yr $32.11 (10-analyst consensus) — fundamentals + valuation re-rating. 5 yr $47.01 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $69.73 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

GEN vs the Top Picks average

PillarGENBook avgDiff
Quality0.800.84-0.04
Growth0.920.84+0.08
Value0.610.78-0.18

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-0.4 over 45 daily scores
From 76.9 (Jun 22) → 76.5 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.4%
90-day change+0.4%
Forward EPS estimate$3.30

Over the last 90 days, what analysts expect GEN to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
69
Position size
$1,996
4.0% of portfolio
Stop price
$21.70
25% below $28.93
$ at risk if stopped
$499.04
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Gen Digital Inc. (GEN): score, valuation & FAQ

Gen Digital Inc. (GEN) is a Software - Infrastructure company that scores 76.5 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A-) and P/E (A-), while D/E (D) rate weaker. On valuation, GEN sits about 29% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade.

Is GEN a good stock to buy?

Bull Rankings scores GEN 76.5 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A-) and P/E (A-). A score is a quantitative screen of Gen Digital Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does GEN score 76.5 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). GEN earns its highest marks on Rev (A-) and P/E (A-), and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is GEN overvalued or undervalued?

Based on $28.93, GEN sits about 29% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade. It trades at a 16.9x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in GEN?

Bears point to the heavy leverage – a debt‑to‑equity of 3.16 – and a market price that assumes a zero‑percent free‑cash‑flow growth for the next ten years, a stark mismatch to the 27.1% revenue expansion; a slowdown in subscription renewals or a rise in financing costs would force the P/E of 17.8 to look stretched and could trigger a sell‑off, especially if the implied growth remains unrealistic.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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