Gen Digital Inc. (GEN) Stock

Gen Digital Inc. trades at a P/E ratio of 21.32, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 7.16 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.52 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.09, Gen Digital Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 5.37 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Gen Digital Inc. achieves a profit margin of 12.80%, meaning it retains $12.80 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 35.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 26.90% and ROA at 7.17%, the company generates strong returns on invested capital.

Gen Digital Inc.'s revenue grew by 25.80% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 20.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SOFTWARE - INFRASTRUCTURE industry averages for proper context.

Gen Digital Inc. offers a dividend yield of 2.38%, paying $0.50 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Feb 13, 2026.

The dividend sustainability can be assessed through the payout ratio - Gen Digital Inc. pays $0.50 per share in dividends against earnings of $0.97 per share, resulting in a payout ratio of 51.55%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Mar 11, 2026.

Gen Digital Inc. has a market capitalization of $12.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 605.66M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SOFTWARE - INFRASTRUCTURE industry, it competes with other firms in this sector.

Gen Digital Inc.'s book value per share is $3.85, while the current stock price is $20.56, resulting in a price-to-book (P/B) ratio of 5.34. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

11 analysts cover GEN with 45% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $31.19 implies 51.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:05 Buy, 6 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.