INFYInfosys Limited
Is the business good?
A genuinely good business: earnings fully cash-backed (1.5×) and elite returns on assets.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 28% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is INFY?
Infosys Limited earns 39% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 30 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Information Technology Services median 8.0% · fiscal year to FY2025
- Cash conversion
- 1.50×
Cash conversion · 1.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.18%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 25% |
| FY2022 | 23% |
| FY2023 | 21% |
| FY2024 | 21% |
| FY2025 | 21% |
Details›
- Gross marginfiscal year to FY2025
- 30%
- Operating marginfiscal year to FY2025
- 21%
- Net marginfiscal year to FY2025
- 16%
- R&D as % of revenue
- 0.79%
- Revenue, trailing twelve months
- $19.3B
- Net income, trailing twelve months
- $3.16B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 39%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
Ranks #3 of 31 by RyuScore