10Y annualized return is
excellent
at 17.6% per year
IT has met or exceeded earnings expectations in
all
recent quarters (10/10)
Strong Market Position
Healthy Price-to-Sales Ratio
Strong Profit Margins
Return on Equity
Adequate Interest Coverage
Liquidity Ratios
📈 Strong Financial Resilience
🛡️ Diverse Client Base and Market Position
🔍 Focus on Innovation
🚀 Positive Growth Outlook
🤝 Expansion Plans in Sales Headcount
High Valuation Metrics
Expensive Price-to-Cash Flow Ratio
Moderate Operating Profit Margin
High Debt Levels
Low Cash Ratio
⚠️ Cautious Approach to Public Sector
Overall, Gartner showcases a strong business model with diverse client support and a commitment to innovation. Future prospects appear bright, with plans for significant revenue growth, although caution in certain sectors may present short-term challenges.
Analysis Date: February 4, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Gartner, Inc. is a company that helps other businesses make better decisions about technology. They do this by providing research and expert advice through a subscription service, where clients can access valuable reports and data. Gartner also hosts conferences where business professionals can learn and connect with each other. Additionally, they offer consulting services to help companies improve their IT operations and make smarter technology choices.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$622.81
Current Market Price: $379.87
IV/P Ratio: 1.64x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
39.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for IT
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (23.69)
P/B ratio ≤ 1.5 (21.85)
Current ratio ≥ 2.0 (1.06x)
Long-term debt < Net current assets (12.31x)
Margin of safety (39.0%)
IT does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
132.36%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
66.92%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
20.00%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 66.92% indicates strong efficiency in producing goods, while the net profit margin of 20.00% showcases effective cost management and profitability.
A return on equity (ROE) of 132.36% demonstrates excellent performance in generating profits from shareholders' equity, indicating effective management.
An operating profit margin of 18.28% suggests there may be room for improvement in operational efficiency and cost management.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
2.13x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.06x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With an interest coverage ratio of 8.74, the company is in a strong position to meet its interest obligations, indicating a solid financial structure.
The current ratio of 1.06 and quick ratio of 1.06 indicate that the company has sufficient liquidity to cover its short-term liabilities.
The debt to equity ratio of 2.13 indicates a high level of leverage, which may pose risks in adverse economic conditions.
A cash ratio of 0.49 suggests that the company has limited cash reserves to cover its current liabilities, which could be a concern for liquidity.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Gartner demonstrated strong financial performance with fourth quarter revenue, EBITDA, EPS, and free cash flow exceeding expectations, indicating a resilient business model even in a complex environment.
Gartner supports a wide range of clients across various sectors, including government and private enterprises, strengthening its competitive advantage and market position.
Gartner's commitment to continuous improvement and innovation is evident, with a focus on leveraging AI to enhance service delivery and client outcomes.
The company expects to deliver sustained double-digit revenue growth, with specific targets indicating a robust path forward in 2025 and beyond.
Gartner plans to increase its quota-bearing headcount significantly, particularly in Global Business Sales, which suggests a focus on driving future growth through enhanced sales capabilities.
The company is taking a conservative stance on public sector hiring due to current uncertainties, which may temporarily limit growth potential in that segment.