Gen Digital Inc.
26.1% vs the weekly close · Price only, before dividends
Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
The assessment, supporting evidence and main risks.
The central value is above the share price. Loss periods, gaps or differences in the earnings basis make P/E less useful here. This assessment uses operating profit, capital spending and the balance sheet instead. Loss years remain in the margin history. The earnings method could not pass its required checks; the cash-flow method passed its own input checks.
Year-to-date profit has improved, but the profit margin narrowed.
Company observations use the financial and market dates shown in the evidence. They may be newer than the published assessment.
Across 1 completed quarters since 2026-04-03, net income was 215.0m versus 135.0m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.
The latest quarterly operating margin was 33.2%, -2.3 percentage points from a year earlier. Compare the sales and margin contributions below.
Across 1 completed quarters since 2026-04-03, net income was 215.0m versus 135.0m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.
Enterprise value / EBITDA is 9.9× for GEN, versus a peer median of 23.8×. Its operating margin is 41.7% versus 13.3%. Business mix and growth expectations can explain the difference.
Over one year, the stock changed +3.8% against -30.7% for Technology (XLK). The gap is +34.6 percentage points. These are price returns, before dividends.
Enterprise value / EBITDA is 9.9× for GEN, versus a peer median of 23.8×. Its operating margin is 41.7% versus 13.3%. Business mix and growth expectations can explain the difference.
Check the supporting chartCash after capital spending / profit: 1.5× for GEN, against 1.3× across 10 comparable peers.
Check the supporting chartNet debt / EBITDA: 2.9× for GEN, against 1.8× across 12 comparable peers.
Check the supporting chartThe trailing operating margin is 41.7%, versus a 36.4% median across 5 annual results. Check whether the latest improvement is repeatable before extending it into a valuation.
Check the supporting chartOver one year, the stock changed +3.8% against -30.7% for Technology (XLK). The gap is +34.6 percentage points. These are price returns, before dividends.
Check the supporting chartThe latest quarterly operating margin was 33.2%, -2.3 percentage points from a year earlier. Compare the sales and margin contributions below.
Check the supporting chartAcross 1 completed quarters since 2026-04-03, net income was 215.0m versus 135.0m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.
Check the supporting chartRevenue changed +6.3% from the same quarter last year, through 2026-06-30. The previous quarter’s year-on-year change was +27.0%.
Check the supporting chartNet income was 215.0m, compared with 135.0m in the same quarter last year. Amounts are in USD.
Check the supporting chartOver the latest four quarters, operating cash was 1.49 times net income. Review receivables, inventory and non-cash charges before judging the gap.
Check the supporting chartOver 1 year (2025-09-12 to 2026-09-11), price changed +3.8% and trailing EPS changed +15.2%. A wider gap changes the earnings multiple; it does not establish fair value.
Check the supporting chartReceivables changed +20.8%, against sales of +6.3%, from the same quarter last year. This can tie up cash. Acquisitions, payment timing and seasonality also need checking.
Check the supporting chartDividends and buybacks totalled 911.0m versus 1,548.0m of cash after capital spending over four quarters. Existing cash or borrowing can fund a difference.
Check the supporting chartThe estimate for the period ending 2027-03-31 changed +0.9% over 30 days. Coverage is 10 analysts.
Check the supporting chartThe central assumptions give $66.79 per share, +120.7% against the weekly close. This is a scenario to test, not an analyst price target.
Check the supporting chartOf the latest 4 comparable quarters, 4 beat the estimate and 0 missed it. Check how price responded; a beat alone is not a reason to buy.
Check the supporting chartWeighted diluted shares changed -0.8%. Compare this with buyback spending; splits and acquisitions can also change the count.
Check the supporting chartDebt less cash was 7,612.0m at 2026-06-30. Operating profit covered interest 3.9 times.
Check the supporting chartValuation comments use the starting assumptions. Related findings can reflect the same underlying change; they are not separate votes or a probability of success.
SM Virtual Analyst is an automated review of stored company results and market data. The views below describe the available evidence and identify what to check next.
Revenue, profit, cash generation and the operating measures behind them.
Follow the operating evidence, compare results with recorded forecasts, and check what funds growth.
Sales, profitability and cash after investment, compared with the financial history.
Gen Digital Inc. provides cybersecurity solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia Pacific, and Japan. The company is headquartered in Tempe, Arizona.
The same twelve-month reporting period. Cash after capital spending is before dividends, buybacks and debt repayments.
Latest reported margin 41.7% · Annual-history median 36.4%
Compare annual results with the latest trailing period. The periods may overlap. The median describes the available history; it is not an assumed future margin.
The latest reporting periods, earnings quality and the longer financial record.
Start with the latest quarters, then check whether the longer record supports the same view.
Compare completed quarters with the same periods a year earlier. Annual year-end: 2026-04-03.
Reported revenue in USD. Growth can include acquisitions, exchange-rate changes and price changes.
Operating profit shows the business before financing and tax. Net income can also reflect asset sales and other one-off items.
Latest quarter against the same quarter last year. The sales effect holds the old margin fixed; the remaining change comes from the margin. These two amounts add up to the change in operating profit.
Cash can move sharply between quarters. Check the four-quarter comparison and working-capital changes before drawing a conclusion.
Latest four consecutive quarters. Payouts above cash generation need another source of funding, such as existing cash or borrowing.
Same quarter one year earlier. Receivables and inventory are balances at the reporting date; sales cover the quarter. Faster growth can tie up cash, but acquisitions and payment timing can also explain a change.
Year-to-date comparisons require every completed quarter since the annual year-end and a matching prior-year period. Missing periods are not treated as zero. Figures may include subsequent restatements.
Annual revenue changed +27.1% between the latest two reported years.
See the figures ↓Operating profit was 42.4% of revenue, a change of +1.5 percentage points.
See the figures ↓Operating cash flow was 1.59 times net income. Working capital and non-cash charges can explain the difference.
See the figures ↓Weighted diluted shares changed -0.8%. Compare this with buyback spending; splits and acquisitions can also change the count.
See the figures ↓Reported financial years. Amounts in USD.
The proportion of sales left as operating profit and cash after capital spending.
Cash after capital spending still has to cover debt repayments and other commitments.
Cash spent, shown as positive amounts. Compare buybacks with changes in the diluted share count.
Weighted diluted shares from the annual statements. Share splits, acquisitions and employee awards can also change the total.
Inventory and receivables as a percentage of annual sales. Increasing amounts can tie up cash; business seasonality also matters.
Financial year ending 2026-04-03. Reported categories may overlap; they are not assumed to add up to total revenue.
| Category | Revenue (USD) |
|---|---|
| Subscription And Service Revenue ↗ | 4982000000 |
| Net Interest Income On Notes Receivable ↗ | 18000000 |
Financial year ending 2026-04-03. Reported categories may overlap; they are not assumed to add up to total revenue.
| Category | Revenue (USD) |
|---|---|
| Americas ↗ | 3533000000 |
| US ↗ | 3309000000 |
| EMEA ↗ | 1061000000 |
| Asia Pacific ↗ | 406000000 |
| Financial year | Revenue | Operating profit | Net income | Operating cash | Cash after capital spending | Diluted shares | Published |
|---|---|---|---|---|---|---|---|
| 2019-03-29 ↗ | 2456000000.0 | 158000000.0 | 31000000.0 | 1495000000.0 | 1288000000.0 | 632000000.0 | 2022-05-20 |
| 2020-04-03 ↗ | 2490000000.0 | 355000000.0 | 3887000000.0 | -861000000.0 | -950000000.0 | 643000000.0 | 2023-05-25 |
| 2021-04-02 ↗ | 2551000000.0 | 896000000.0 | 554000000.0 | 706000000.0 | 700000000.0 | 600000000.0 | 2024-05-16 |
| 2022-04-01 ↗ | 2796000000.0 | 1005000000.0 | 836000000.0 | 974000000.0 | 968000000.0 | 591000000.0 | 2025-05-15 |
| 2023-03-31 ↗ | 3317000000.0 | 1206000000.0 | 1334000000.0 | 757000000.0 | 751000000.0 | 624000000.0 | 2026-05-21 |
| 2024-03-29 ↗ | 3800000000.0 | 1110000000.0 | 607000000.0 | 2064000000.0 | 2044000000.0 | 642000000.0 | 2026-05-21 |
| 2025-03-28 ↗ | 3935000000.0 | 1610000000.0 | 643000000.0 | 1221000000.0 | 1206000000.0 | 624000000.0 | 2026-05-21 |
| 2026-04-03 ↗ | 5000000000.0 | 2120000000.0 | 973000000.0 | 1545000000.0 | 1523000000.0 | 619000000.0 | 2026-05-21 |
Amounts use each statement’s reported currency. Historical figures can include later restatements. Weighted diluted shares are an annual earnings measure, not the current share count used for valuation.
Separate the operating result, financing, tax and share count. Compare the same quarter a year apart.
Its contribution was $57.00m. The bridge reconciles the two quarters; it does not by itself establish whether the change will repeat.
See the figures ↓At the old share count, current profit would produce EPS of $0.34. The changed share count contributes $+0.01 per share. This does not attribute all changes in shares to buybacks.
See the figures ↓The latest quarter reported $215.00m net income and $434.00m operating cash. The difference includes non-cash expenses and working capital; one quarter can be seasonal.
See the figures ↓USD. Components add up to the total change. Non-operating items can include interest, investment income and other gains or charges.
Reported diluted EPS is checked against profit divided by weighted diluted shares. Split periods are excluded. The share-count effect is measured after the profit change.
USD. Cash timing can differ from profit recognition. Use several quarters to check whether a difference persists.
No reviewed schedule of unusual profit items is recorded. Reported profit is not assumed to be recurring profit.
Growth from pricing, volume, acquisitions and currency is identified only when the company provides a matching breakdown. A financial bridge explains the arithmetic, not the business cause. Gains are positive and charges negative in the unusual-item schedule.
Compare the cash generated by the business with investment, acquisitions, dividends and buybacks.
Cash after capital spending is before acquisitions, dividends and buybacks. A full remaining-cash figure is shown only when all those amounts are matched; missing payments are never zero. A shortfall may be met by cash balances, borrowing or asset sales. These figures do not establish the funding source or the return on new investment.
These cash measures show funding needs. They do not calculate the return on new investment. That requires comparable invested capital, after-tax operating profit and a supported required return. Acquisitions, disposals and accounting changes need separate treatment. Check the return-on-capital comparison in Peers & sector where those inputs are available.
A target is useful only when you can see the business assumptions behind it.
Recent median quarterly year-on-year growth; model starting growth. Published model assumptions; target date 2027-09-15.
Trailing result; model longer-run margin. Published model assumptions; target date 2027-09-15.
Company guidance and consensus are compared only when the fiscal period, measure, currency and earnings basis match. Target assumptions below use their own stated horizon; they are not relabelled as fiscal-year consensus.
No verified, like-for-like management and consensus comparison is available yet. It is omitted rather than combining different periods or earnings definitions.
Performance, earnings and valuation compared with the market and other companies.
Separate the company’s move from the wider market. Then examine the change in earnings and the price paid for them.
Both series start at 100 on the same date. Completed weekly prices; dividends are excluded. A sector fund represents its own holdings and weighting, which differ from the equally weighted sector statistics above.
At the old earnings multiple, the latest trailing EPS would imply $33.58. The actual close was $30.26.
2025-09-12 to 2026-09-11. The earnings contribution holds the starting P/E fixed; the remaining change comes from the P/E. This is an accounting comparison, not a fair-value estimate or proof of why investors traded.
-2.5% from the highest weekly close; 69.1% above the lowest.
Position in the range is useful context. It does not establish whether the business is cheap or expensive.
Test what the business could be worth ↓Compare reported earnings, the market’s response and changes in expectations.
Weekly prices are matched only after a recorded results date. A reporting-week move includes other news. EPS from earnings releases may differ from statutory diluted EPS. Historical revisions can change this comparison; it is not a trading backtest.
4 beats and 0 misses across the last 4 comparable quarters. Earnings-release figures may use an adjusted basis and differ from the financial statements.
From the weekly close before the announcement to the first weekly close after it, and to approximately four weeks later. These are weekly-window returns, not a one-day reaction. Other news also affects price.
P/E is available for 157 of 157 weekly observations. There are no missing earnings observations in this displayed period. Select Trailing EPS to inspect the earnings behind the ratio.
P/E at 2026-09-11: 11.8× · Median across positive-earnings weeks: 12.0×. Loss-making weeks are excluded from this median.
Uses earnings-release EPS, which can differ from the statement EPS used in peer factors. A low multiple can reflect weaker expected earnings.
Price return excludes dividends. Earnings growth and multiple changes require positive EPS at both ends of the comparison.
Weekly prices are matched only after a recorded results date. A reporting-week move includes other news. EPS from earnings releases may differ from statutory diluted EPS. Historical revisions can change this comparison; it is not a trading backtest.
Compare the price of the business with what it earns. Then check whether the wider sector is helping.
Enterprise value / EBITDA is 9.9× for GEN, versus a peer median of 23.8×. Its operating margin is 41.7% versus 13.3%. Business mix and growth expectations can explain the difference.
GEN is the larger teal dot. Each other dot is a named peer. Move right for greater profitability; move up for a higher valuation multiple.
GEN is shown in teal. The comparison uses 12 selected peers out of 132 other covered listings in Software - Infrastructure.
Active US common listings in the same industry; up to 12 peers nearest in market value. Identified preferred shares, warrants, rights and units are excluded. Matching company names and labelled share classes count once, using the listing with the largest stored market value; the target's other identified classes are excluded. This metadata screen is not a complete issuer-identity check. Medians require at least three companies per measure. All use the same published week and factor universe. Financial periods can differ and are shown below. This is a comparison of current constituents, not a backtest.
These figures cover other active US listings in the same sector and publication week. Sector membership is broader than the selected industry peers.
Percentage measures from the same published week. Profitability, growth and price performance describe different things; they are not added together.
Operating marginGEN 41.7% · Sector median 4.2%595 other listings with this measure
Adjusted-price change over one yearGEN 5.4% · Sector median -4.4%592 other listings with this measure
Comparisons use stored statement-based factors. Earnings-release EPS can use a different basis from these financial statements. Missing measures and unprofitable earnings multiples are omitted. Financial periods differ across issuers; matching publication weeks does not make their businesses identical.
Compare the trade-offs across closely sized businesses in the same industry. This list is not an investment ranking.
The trade-off is less favourable ev / ebitda, operating margin.
NTNX financial period 2026-07-31. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read NTNX's case ↗| Measure | GEN | NTNX |
|---|---|---|
| EV / EBITDA | 9.86× | 53.11× |
| Operating margin | 41.68% | 9.77% |
| Net debt / EBITDA | 2.92× | 2.12× |
The trade-off is less favourable ev / ebitda, operating margin.
TOST financial period 2026-06-30. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read TOST's case ↗| Measure | GEN | TOST |
|---|---|---|
| EV / EBITDA | 9.86× | 36.15× |
| Operating margin | 41.68% | 6.39% |
| Net debt / EBITDA | 2.92× | -2.05× |
The trade-off is less favourable ev / ebitda, operating margin, net debt / ebitda.
AKAM financial period 2026-06-30. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read AKAM's case ↗| Measure | GEN | AKAM |
|---|---|---|
| EV / EBITDA | 9.86× | 18.66× |
| Operating margin | 41.68% | 11.85% |
| Net debt / EBITDA | 2.92× | 6.32× |
The trade-off is less favourable ev / ebitda, operating margin.
IOT financial period 2026-07-31. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read IOT's case ↗| Measure | GEN | IOT |
|---|---|---|
| EV / EBITDA | 9.86× | 452.18× |
| Operating margin | 41.68% | 1.05% |
| Net debt / EBITDA | 2.92× | -4.51× |
The trade-off is less favourable ev / ebitda, operating margin.
DOCN financial period 2026-06-30. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read DOCN's case ↗| Measure | GEN | DOCN |
|---|---|---|
| EV / EBITDA | 9.86× | 47.20× |
| Operating margin | 41.68% | 14.80% |
| Net debt / EBITDA | 2.92× | 2.27× |
The trade-off is less favourable ev / ebitda, operating margin.
FFIV financial period 2026-06-30. Published prices 2026-09-11. Differences in product mix, geography and accounting can limit comparability.
Read FFIV's case ↗| Measure | GEN | FFIV |
|---|---|---|
| EV / EBITDA | 9.86× | 23.78× |
| Operating margin | 41.68% | 24.53% |
| Net debt / EBITDA | 2.92× | -1.47× |
The published target, its assumptions and alternative valuation methods.
Lower valuation, stronger profitability. Year-to-date profit has improved, but the profit margin narrowed.
Loss periods, gaps or differences in the earnings basis make P/E less useful here. This assessment uses operating profit, capital spending and the balance sheet instead. Loss years remain in the margin history. The earnings method could not pass its required checks; the cash-flow method passed its own input checks.
The weaker case combines slower sales, lower margins and a higher required return. The range uses business-specific sensitivity assumptions. Severe stress is shown separately. These are not probabilities or limits on possible losses.
Trailing operating margin to the longer-run assumption. Loss years are included; the model allows three years for the change.
See the evidence ↓Recorded capital spending to the assumed spending floor. This is not a verified maintenance amount. Spending also funds depreciation and the physical assets needed for sales growth.
See the evidence ↓Operating value per share less net debt and other ownership claims. Cash is valued at the target date; it is not today's DCF value relabelled as a future target.
See the evidence ↓10.0% starting sales growth · 34.8% operating margin · 8.8% required return
15.0% starting sales growth · 38.6% operating margin · 8.3% required return
20.0% starting sales growth · 42.5% operating margin · 7.8% required return
The central value uses a 38.6% operating margin and a 8.30% required return. 79% of the absolute discounted cash value comes from after year five. Small changes to these assumptions can move the target substantially.
Value the future operating cash at the target date, subtract net debt and other ownership claims, then divide by current shares.
Operating profit divided by revenue. The central margin is the median of 5 annual results plus the latest trailing result. It includes loss years and is reached over three years.
Annual model cash before financing payments. The first forecast year ends one year after 2026-06-30. Cash before the target date is excluded from operating value; it is assumed distributed, while a deficit increases debt.
| Scenario | Starting sales growth | Operating margin | Year-5 company cash / share | Required return | Price |
|---|---|---|---|---|---|
| Weaker | 10.0% | 34.8% | $2.70 | 8.8% | $25.37 |
| Central | 15.0% | 38.6% | $3.37 | 8.3% | $38.17 |
| Stronger | 20.0% | 42.5% | $4.13 | 7.8% | $54.87 |
Accounting equity less preferred stock. Not liquidation value or a floor under the share price.
Current trailing figures at the starting peer multiple. A separate present-value reference; business mix and cycle position can differ.
Current trailing figures at the starting peer multiple. A separate present-value reference; business mix and cycle position can differ.
These are separate current-value references, not additional 12-month targets. They are not averaged into the target. The peer comparisons use current trailing profits and sales; the cash-flow model allows profitability to change.
Compare valuation assumptions ↓Methods are considered by business suitability and completeness of evidence. The model does not select whichever produces the highest target.
| Method | Input checks | Outstanding requirements |
|---|---|---|
| Earnings and historical valuation | Incomplete | Release EPS is $2.57; statement-derived EPS is $1.76. The difference exceeds 5%; the earnings basis needs review before a rating is issued. |
| Cash flow across the cycle · Selected | Passed | Required inputs are available. Publication safeguards apply separately. |
This method keeps both weak and strong years in view. It values cash from the operations after tax, capital spending and working capital, then deducts net debt and other ownership claims.
The central operating margin is the median of up to five annual margins plus the latest four-quarter margin, including losses. It is reached over three years. Sales growth starts at the median of four quarterly year-on-year changes.
Starting sales growth is limited to −10% to +15% and moves towards 2% by year five. Depreciation must have a matching reported period and exclude impairment charges. An unrelated EBITDA-minus-EBIT difference is not used. The spending floor moves towards the median recorded capital-spending ratio, with a floor at depreciation. This historical total does not identify maintenance separately from expansion spending. Total capital spending must also cover depreciation plus the assets needed for extra sales. Working capital is funded in proportion to extra sales; falling sales do not automatically release cash.
The central rate is 8.30%, a model estimate of the after-tax cost of debt and equity funding. It is separate from the return needed for a Buy rating.
The USD Treasury reference is 4.96% on 2026-09-11. Price-return sensitivity to US stocks is 1.01 over 156 weeks; the model moves it one-third towards 1 to reduce reliance on a noisy historical estimate. A 5% equity risk premium is an explicit SM assumption. This gives an equity funding rate of 10.01%.
Debt uses 6.57% before tax: the higher of the observed annual interest-to-debt ratio and the Treasury rate plus an assumed 1.5 percentage points. That spread is a modelling assumption, not a quoted company bond yield. Debt represents 31.1% of the combined debt and quoted equity value. Debt book value approximates market value.
The ordinary weaker and stronger cases use a half-point discount-rate band and retain 2% continuing growth. Severe stress adds two percentage points and assumes no continuing growth. Price history, assumed risk premiums and accounting debt values have limits; regional risks can differ. Official Treasury observations ↗
Tax assumption: 31.4% from the latest four-quarter tax charge divided by positive pretax profit. No immediate tax refund is assumed on losses.
Cash after the target date is discounted to that date. Earlier positive cash is assumed distributed, so it is not added to the target. Any earlier deficit after debt interest increases net debt. The model holds the share count and other ownership claims constant. It does not assume future buybacks, asset sales or a refinancing.
This is a going-concern cash-flow model. It cannot establish asset sale proceeds or restructuring recoveries. A negative equity result is shown as zero, reflecting limited liability rather than a liquidation estimate.
Buy requires the disclosed return hurdle, at least equal upside to the weaker-case decline, sound cash and borrowing, and evidence of profitable growth, cash value or operating recovery. Hold + Add requires at least three quarters of the Buy hurdle (minimum 10%), upside of at least three quarters of the weaker-case decline, positive cash and acceptable borrowing, without declining growth evidence. Hold + Reduce means at least 10% central price downside without meeting Sell. Sell requires at least 25% downside, or at least 15% with declining growth or both losses and negative cash after investment; central downside must also cover any upside in the stronger ordinary scenario. Hold covers the remaining rated cases. The qualified Hold ratings express direction and do not specify a position size. Moderate borrowing up to 1.0 times above the business limit can support Hold + Add only with interest cover of at least 6 times and cash after investment of at least 10% of net debt. High valuation uncertainty adds five percentage points to the Buy hurdle. Severe stress is separate. Returns are price only; unverified dividends are not added.
Publication safeguards. Model estimates below one quarter or above four times the current price require a separate valuation review. Cash-flow estimates also require review when more than 90% of their absolute present value comes from after year five. These are SM review thresholds; they do not cap the calculated value or move it towards the market price.
This is an automated research assessment. The policy has not yet been validated against subsequent stock returns. It does not account for your portfolio, tax position or investment needs.
New data refreshes the evidence. A formal review determines whether the published assessment changes. Editing the valuation controls below changes your scenario only. Saving your case preserves this dated assessment alongside your assumptions.
| Check | Status | Evidence |
|---|---|---|
| Recent price | Passed | Weekly close dated 2026-09-11. |
| Current financials | Passed | Statements through 2026-06-30; factor prices dated 2026-09-11. |
| Price risk | Passed | Risk uses the latest 52 weekly price changes. |
| Operating history | Passed | 5 annual results, retaining operating losses and unusually strong years. |
| Quarterly operating results | Passed | Four quarters through 2026-06-30. |
| Cash-flow and ownership inputs | Passed | Capital spending, depreciation estimate, operating capital, debt, cash and other ownership claims are recorded. |
| Depreciation basis | Passed | Four matching quarters of operating income and reported depreciation are required. An unrelated EBITDA-minus-EBIT difference is not treated as depreciation. |
| Matching currency | Passed | USD statements and share price. |
| Operating totals | Passed | Quarterly sales and operating profit agree with the trailing snapshot within 5%. |
| Operating discount rate | Passed | The operating cash-flow discount rate needs a current USD Treasury rate, at least two years of matching market returns, and dated debt and share inputs. An equity return hurdle is not used as the company's funding cost. |
| Continuing growth and funding cost | Passed | The funding cost must exceed continuing growth in every valuation scenario. |
| Scenario consistency | Passed | The weaker, central and stronger assumptions must give an ordered range. When growth costs more capital than it earns, a tailored operating review is required before publishing a target. |
| Target publication review | Passed | The model estimate is within SM's automatic publication range of one quarter to four times the current price. This is a review threshold, not evidence that the market price is correct. |
| Cash-flow value dependence | Passed | Cash flows beyond year five account for 79.2% of the absolute present value. This is within SM's 90% automatic publication limit. |
| Investment assets and operating capital | Passed | No material unvalued investment balance was identified in the available capital inventory. This does not establish that every asset has been independently appraised. |
Financial period: 2026-06-30. Margin history includes 5 annual results and the latest four quarters. Model version: sm-assessment-14-operating-capital. Published price: $30.26 on 2026-09-11. The upside above uses the latest close. Review policy and original record ↓
The central value is above the share price. Hold · Cash flow across the cycle
Classification sensitivity. The classification changes under the tested assumptions. View the comparisons ↓
Weekly close $30.26. The figures below make the model's value at 2027-09-15 equal this price.
| Assumption | Our model | To match price |
|---|---|---|
| Starting sales growth | 15.00% | 7.46% |
| Operating margin | 38.64% | 32.52% |
These are alternative ways for the target-date value to equal the latest weekly close, before dividends. They imply zero price appreciation to that date, not an investor's required total return. Each changes one assumption while holding the others fixed. Many combinations could fit the price; this does not establish market consensus or the likelihood of an outcome.
Starting growth is tested from −20% to 100%, and operating margin from 0% to 100%. Growth still fades, and investment is still funded. These are search bounds, not plausible forecast ranges. Matches are approximate; a scan can miss additional solutions. A value is shown only where the cash-flow calculation is valid.
Interest, funding costs, ownership claims, shares, continuing growth and the target date retain their recorded basis. A price change does not re-estimate the cost of capital in this comparison.
Target $38.17 for 2027-09-15. Assessment 2026-09-16; financial period through 2026-06-30.
| Measure | Evidence | Assumption |
|---|---|---|
| Sales growth | 25.51% | 15.00% |
| Operating margin | 41.68% | 38.64% |
| Capital spending / sales | 0.43% | 9.71% |
| Required return | Model assumption | 8.30% |
These inputs use the reporting period, profit adjustments and share basis recorded at assessment. Historical averages do not establish sustainable growth or margins.
Sales growth. Median of 4 recorded year-on-year comparisons. Starting growth fades to 2.00% by forecast year 5.
Operating margin. Historical reference: 38.64%. Reached in forecast year 3.
Capital spending / sales. Assumed spending floor. Actual model spending also funds depreciation and growth capital, using the larger requirement.
Required return. Annual operating funding cost; continuing growth 2.00%. Lower required returns raise value when future cash flows are positive.
Company evidence recorded with the assessment on 2026-09-16. The detailed financial tables may contain newer results.
Growth assumption. The model uses 15.0%, compared with a measured median of 25.5%. Using that measured rate, with the same fade and investment requirements, gives $50.83 at the target date. This extrapolation shows the effect of the growth limit; it does not establish a sustainable forecast.
Year-to-date profit has improved. Across 1 completed quarters since 2026-04-03, net income was 215.0m versus 135.0m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.
The profit margin narrowed. The latest quarterly operating margin was 33.2%, -2.3 percentage points from a year earlier. Compare the sales and margin contributions below.
Strength in the business and an attractive share price are separate judgments. These findings do not independently verify the target.
Model uncertainty: high. The cash-flow adjustment exceeds reported capital spending. Physical replacement and acquired-asset renewal have not been separately established.
The two assumptions with the largest effect in the sensitivity tests, measured relative to our target. The table shows both ends of each range. Other assumptions stay fixed; these are conditional values, not forecasts or probabilities.
| Measure | Changed assumption | Target-date value |
|---|---|---|
| Required return | Required return: 7.30%One percentage point below and above the central funding cost; other assumptions fixed. | $47.71 |
| Required return | Required return: 9.30%One percentage point below and above the central funding cost; other assumptions fixed. | $31.25 |
| Starting sales growth | Sales growth: 10.00%Use the ordinary scenario growth assumptions while holding the other central assumptions fixed. | $32.82 |
| Starting sales growth | Sales growth: 20.00%Use the ordinary scenario growth assumptions while holding the other central assumptions fixed. | $43.95 |
Rating basis recorded 2026-09-16. Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
| Measure | At publication | Latest | Improvement threshold | Deterioration threshold | Status |
|---|---|---|---|---|---|
| Quarterly sales growth | 6.28% | 6.28% | ≥ 11.28% | ≤ 1.28% | Within starting range |
| Quarterly operating margin | 33.16% | 33.16% | ≥ 35.16% | ≤ 31.16% | Within starting range |
| Operating cash / profit | 1.49× | 1.49× | ≥ 1.69× | ≤ 1.29× | Within starting range |
| Net debt / EBITDA | 2.92× | 2.92× | ≤ 2.42× | ≥ 3.42× | Within starting range |
These observations use the stated periods and reporting bases. Reported margins and the valuation's adjusted margin history can differ; reconcile the basis before comparing a new result with the model.
New results, restatements, material disclosures and unresolved share changes require review. A sustained price change can change the rating comparison without changing the target. Company evidence, risk and uncertainty must still support the classification. Dividends are assessed separately where verified.
Growth, cash generation, borrowing and uncertainty behind the rating.
Value operating cash flow or comparable earnings; deduct debt and other ownership claims where appropriate.
Annual earnings growth 28.4% per diluted share over two years. Cash after investment changed -12.0% per diluted share per year.
The cash-flow adjustment exceeds reported capital spending. Physical replacement and acquired-asset renewal have not been separately established. A stated assumption test or the difference between checked valuation methods exceeds 25% of the central target.
The published recommendation is Hold. The checks below compare its recorded company assumptions with the latest weekly close. A formal review is required before the recommendation changes.
Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
Valuation uncertainty is high. The scenario balance does not measure the probability of reaching either value. A Sell can reflect a high price for a sound company; Hold can reflect insufficient support for a positive view despite a higher target.
| Classification | Current comparison | Meaning and requirements |
|---|---|---|
| Buy | Does not apply | Positive value with sufficient business and financial support. At least 23.5% central upside, covering the 16.2% weaker-case decline; cash, borrowing and a supported business route must pass. |
| Hold + Add | Does not apply | Qualified positive value; full Buy requirements are not met. At least 17.6% upside and three quarters of the weaker-case decline, positive cash, acceptable borrowing and no declining growth evidence. |
| Hold | Applies | No directional classification meets its requirements. This can reflect a price near the target, an insufficient return margin or financial evidence that does not support a positive view. It is not a substitute for missing valuation data. |
| Hold + Reduce | Does not apply | Qualified negative value; full Sell requirements are not met. At least 10% central downside, without both the 25% Sell threshold and its stronger-case balance. |
| Sell | Does not apply | Substantial negative value, with the stronger scenario checked. At least 25% central downside and at least as much downside as the 81.3% stronger-case upside. Declining evidence: not established. |
| Assessment | Buy requirement | Evidence |
|---|---|---|
| Price and return | Met | 26.1% price upside against a 23.5% Buy requirement. |
| Downside balance | Met | The weaker operating case is 16.2% below the price. Severe stress is shown separately. |
| Cash generation | Met | Positive cash after capital spending and at least 80% cash conversion of positive reported profit are required. |
| Borrowing | Not met | Needs attention. The operating company policy uses net debt / EBITDA up to 3.0 and interest cover of at least 4.0, unless cash covers debt. |
| Business evidence | Met | Profitable growth. Growth evidence: supported. |
| Earnings support | Met | The earnings-growth or cash-value requirement is met. Any assumed P/E change remains explicit in the target bridge. |
Price return relative to the requirement: 1.11×. A value of 1 meets the return hurdle; it does not establish a Buy on its own. The comparison excludes dividends, fees and taxes. Hold + Add means a measured positive research view with less support than Buy. Hold + Reduce means a qualified negative view where the full Sell requirements are not met. These labels do not specify a holding size or assume you already own the stock.
EPS divided by price is earnings yield: $5 of earnings at a $100 price is 5%. Earnings are not a promised distribution. Cash after capital spending is before debt principal repayments. Neither yield is added to earnings growth to calculate a return.
| Measure | Yield | Period |
|---|---|---|
| Reported earnings yieldReported annual earnings / listed share price | 5.8% | 2026-06-30 |
| Cash after capital spending / priceOperating cash less capital spending; before debt principal payments and distributions | 8.5% | 2026-06-30 |
A recurring-earnings yield needs a reviewed adjustment schedule. Consensus is included only with verified currency, annual period, earnings definition and listed-share basis. Unknown inputs remain excluded.
After-tax operating return on current capital: 14.2%. Model funding cost: 8.3%.
Reported operating profit after the measured tax rate / current equity, debt and minority interests less cash. Current capital is used, not average capital. Accounting values and acquisitions affect the comparison. This is not the return on new investment.
Sales growth uses comparable reported periods. Earnings and cash growth use two years per diluted share, where complete; a comparison spanning a split is excluded until a common basis is verified. Periods with conflicting earnings and share units are excluded from both per-share comparisons. These observations do not establish organic growth or returns on new investment. Projected EPS change covers the financial-period end to the target date.
Growth must be funded. The cash-flow model charges for investment and working capital; an earnings target holds shares constant and is checked against cash generation. Organic growth, acquisition effects and the return on new investment are not inferred from sales growth alone. Missing evidence does not receive a positive score.
| Year end | Diluted EPS | Cash after capital spending / diluted share |
|---|---|---|
| 2022-04-01 | 1.41 | 1.64 |
| 2023-03-31 | 2.14 | 1.20 |
| 2024-03-29 | 0.95 | 3.18 |
| 2025-03-28 | 1.03 | 1.93 |
| 2026-04-03 | 1.57 | 2.46 |
Cash coverage: 1.49× (reported net profit). Net debt / EBITDA: 3.10×. Interest cover: 3.65×. Cash covering debt outright also meets the borrowing requirement. Otherwise the business policy uses a leverage limit of 3.0× and interest cover of 4.0×. Borrowing up to 1.0× above the limit may support Hold + Add only when interest cover is at least 6× and annual cash after capital spending covers at least 10% of net debt.
The reported debt amount is retained. Lease obligations are not silently removed.
The ordinary scenarios widen with observed growth and margin dispersion. The minimum sales-growth band is 5 percentage points for this business. The minimum margin band is 10% of the central margin. Earnings cases also use at least a 10% P/E band. Cash-flow cases use a half-point discount-rate band, keeping 2% continuing growth and spending-floor assumptions consistent. These are disclosed sensitivity assumptions, not statistical confidence intervals.
Growing businesses can qualify through persistent reported growth and improving per-share earnings or cash. Established businesses can qualify through cash value. A cash-flow recovery needs supportive operations without additional forecast borrowing. A growth Buy requires at least 5% annual model EPS growth. The target bridge shows the separate effect of any change in P/E.
This combines a sales contraction, weaker profit margins and a two-point increase in the funding rate with no terminal growth. The original severe downside assumptions remain available for assessing vulnerability.
Model value: $2.39 · -92.1% relative to the weekly close.
Sales growth -10.0% · margin 33.3% · discount rate 10.30%. This scenario has no assigned probability and is not a limit on possible losses.
The target and classification use price returns. This separate comparison adds only reviewed regular cash dividends with an eligible ex-date and payment by the target date.
Dividend evidence incomplete. No dividend-inclusive figure is shown. Missing or ineligible payments are not treated as zero income, and a historical dividend yield is not used as a forecast.
Sensitive to assumptions. These tests use the assessment recorded on 2026-09-16.
Each test changes only the stated assumptions. These are conditional values, not a confidence interval or the probability of reaching a target. A change above 25% of the central target is flagged for review. The five-year central policy is retained; longer growth is not inferred from recent returns.
The classification changes under the tested assumptions.
| Assumption | Central value | Rating |
|---|---|---|
| Operating margin · higher input | $43.17 | Buy |
| Observed growth without the policy limitIllustration; further evidence needed | $50.83 | Illustration |
| Growth fades by year 10 | $53.04 | Hold |
Each alternative includes its own weaker and stronger cases. These are conditional comparisons, not probabilities or new recommendations.
The vertical marker is the central target of $38.17. Each range changes one input or the stated pair of capital ratios. All other assumptions stay fixed.
| Method | Value / share |
|---|---|
| Earnings and historical valuation | Not comparable |
| Cash flow across the cycleSelected method | $38.17 |
A second method has not passed all the requirements. Agreement between valuation methods has not been established.
Same target date, separate methods. Earnings history uses a historical P/E; operating cash flow models investment and financing. They share company data and are not independent appraisals. No average is used and no method is selected because it gives a higher value.
Earnings and historical valuation · Not comparable
Release EPS is $2.57; statement-derived EPS is $1.76. The difference exceeds 5%; the earnings basis needs review before a rating is issued.
Cash flow across the cycle · Checks passed
Review price: $30.26. These comparisons do not replace the published target or rating.
| Test | Assumption | Value | Change vs target |
|---|---|---|---|
| Starting sales growth · lower input | Use the ordinary scenario growth assumptions while holding the other central assumptions fixed.Sales growth: 10.00% | $32.82 | -14.0% |
| Starting sales growth · higher input | Use the ordinary scenario growth assumptions while holding the other central assumptions fixed.Sales growth: 20.00% | $43.95 | 15.1% |
| Operating margin · lower input | Use the ordinary scenario margin assumptions with other central assumptions fixed.Profit margin: 34.77% | $33.17 | -13.1% |
| Operating margin · higher input | Use the ordinary scenario margin assumptions with other central assumptions fixed.Profit margin: 42.50% | $43.17 | 13.1% |
| Observed growth without the policy limit | Use the median measured sales growth without the model's starting-growth limit. It still fades to continuing growth by year five and pays for investment. This is an extrapolation test, not evidence that this pace is sustainable or organic. It shows the effect of the policy limit without changing the central target.Sales growth: 25.51% | $50.83 | 33.2% |
| Required return · lower input | One percentage point below and above the central funding cost; other assumptions fixed.Required return: 7.30% | $47.71 | 25.0% |
| Required return · higher input | One percentage point below and above the central funding cost; other assumptions fixed.Required return: 9.30% | $31.25 | -18.1% |
| Capital needed for extra sales · lower input | Change both physical-capital and working-capital requirements by 25%. The spending floor still applies. This tests a proxy; it does not establish the cost of future projects.Capital requirements: 0.75× | $38.19 | 0.1% |
| Capital needed for extra sales · higher input | Change both physical-capital and working-capital requirements by 25%. The spending floor still applies. This tests a proxy; it does not establish the cost of future projects.Capital requirements: 1.25× | $38.15 | -0.1% |
| Spending floor · lower input | Change the assumed spending floor by 20%; depreciation and growth investment remain funded.Spending floor / sales: 7.77% | $38.17 | 0.0% |
| Spending floor · higher input | Change the assumed spending floor by 20%; depreciation and growth investment remain funded.Spending floor / sales: 11.65% | $34.71 | -9.1% |
| Operating tax rate · lower input | Five percentage points either side of the central tax rate; no loss refunds are assumed.Tax rate: 26.36% | $41.89 | 9.7% |
| Operating tax rate · higher input | Five percentage points either side of the central tax rate; no loss refunds are assumed.Tax rate: 36.36% | $34.46 | -9.7% |
| Growth fades by year 3 | The starting growth rate reaches continuing growth in the stated year. Longer transitions extend the explicit cash forecast and fund each year's investment. This is a duration test, not evidence of lasting competitive advantage.Growth reaches continuing rate: 3.00 years · Explicit forecast: 5.00 years | $32.63 | -14.5% |
| Growth fades by year 7 | The starting growth rate reaches continuing growth in the stated year. Longer transitions extend the explicit cash forecast and fund each year's investment. This is a duration test, not evidence of lasting competitive advantage.Growth reaches continuing rate: 7.00 years · Explicit forecast: 7.00 years | $43.94 | 15.1% |
| Growth fades by year 10 | The starting growth rate reaches continuing growth in the stated year. Longer transitions extend the explicit cash forecast and fund each year's investment. This is a duration test, not evidence of lasting competitive advantage.Growth reaches continuing rate: 10.00 years · Explicit forecast: 10.00 years | $53.04 | 39.0% |
| Latest margin persists | Retain the latest operating margin instead of converging to the historical reference.Profit margin: 41.68% | $42.11 | 10.3% |
| Latest spending ratio persists | Hold the recorded current spending floor rather than moving it to the historical ratio. Growth still requires capital.Spending floor / sales: 0.43% | $38.17 | 0.0% |
| Spending floor at depreciation | Illustrative lower floor only. Still fund physical growth investment and working capital. This does not establish maintenance spending or replacement cost.Spending floor / sales: 9.71% | $38.17 | 0.0% |
Each cell recalculates the growth path, reinvestment and continuing value together. Rates are annual percentages. An invalid rate combination is left unvalued.
| Required return | 0% growth | 1% growth | 2% growth | 3% growth |
|---|---|---|---|---|
| 7.30% | $31.56 | $38.35 | $47.71 | $61.42 |
| 8.30% | $26.26 | $31.40 | $38.17 | $47.50 |
| 9.30% | $22.10 | $26.12 | $31.25 | $38.00 |
Recorded amounts, model assumptions and unresolved economic questions are shown separately. This inventory does not certify recurring earnings or a competitive advantage.
4 of 4 measured sales comparisons are positive. The median is 25.5%.
Model treatment. Starting sales growth is 15.0%. It fades to 2% by year five; five years is a policy assumption.
Reported growth can include acquisitions, price changes and currency effects. It does not establish organic growth or the duration of a competitive advantage.
Latest margin 41.7%; historical reference 38.6%.
Model treatment. The central operating margin is 38.6%.
Historical results retain losses and unusually strong years. A median does not establish recurring profit; acquisitions and changes in business mix can make earlier years less comparable.
Latest capital spending is 0.4% of sales; depreciation is 9.7%.
Model treatment. The spending floor moves to 9.7% of sales. The model also funds depreciation and the physical assets needed for extra sales, using the larger requirement.
The historical spending floor includes any expansion spending within the reported total. A separate maintenance amount has not been established. The depreciation-floor test is an illustration, not a recovered disclosure.
Net physical assets / sales is 0.01×; positive net working capital / sales is 0.00×.
Model treatment. Extra sales require capital at these recorded ratios. Falling sales do not automatically release cash.
Book assets are a proxy for future investment needs. Acquisition prices, research assets, leases and unused capacity can change that relationship. Negative working capital is not treated as free funding.
No separate investment value is included in this model.
Model treatment. Recorded cash is already included in net debt. Any separate investment value must avoid counting that cash twice.
No separate value does not mean the company has no investments. Marketable securities, equity stakes, restricted balances and carrying values need a dated ownership and valuation review.
The valuation retains the recorded debt and ownership-claim basis.
Model treatment. No lease liability is removed and no corresponding expense is added back by this review.
Any lease adjustment must change profit, assets and debt consistently. Acquired intangibles, minority interests and convertible securities can need company-specific treatment.
Current ownership and earnings share bases are reconciled by the publication checks.
Model treatment. The forecast holds the share count constant. It does not assume future buybacks or issue proceeds.
Unvested awards and future capital raising can change value per share. A share-compensation expense and a separate dilution charge must not count the same cost twice.
Continuing growth: 2.0%. Net reinvestment: 0.1% of after-tax operating profit. Implied return on new capital: 1962.8%, against a 8.30% model funding cost.
Continuing growth divided by the model's net reinvestment share of after-tax operating profit. This is the return on incremental capital implied by the assumptions, not an observed project return. It is unavailable when profit or net reinvestment is non-positive.
| Item | Annual amount · USD | % of sales | Treatment and limitations |
|---|---|---|---|
| Share compensation | $237,000,000 | 4.7% | The operating-profit model does not add back share compensation separately. Reported operating cash can include an add-back. A fixed future share count is an assumption; awards and repurchases need separate review. |
| Acquisitions | $1,032,000,000 | 20.6% | Acquisitions are shown separately from capital spending. Reported sales growth is not assumed organic. The central forecast does not establish funding for future acquisitions. |
| Research spending | $409,000,000 | 8.2% | Reported research expense is retained in profit. It is not capitalised or added back without an explicit asset life and amortisation schedule. |
| Research excluding acquired projects | Not established | — | This excludes acquired research. It is shown separately and is not substituted for total research spending. |
| Acquired research expense | Not established | — | This is the reported expense for acquired research, not necessarily the cash paid in this period. It is not added back to profit. |
An annual amount is not a trailing-quarter total. Missing amounts are not treated as zero, and no adjustment to reported profit is made by this table.
The effect of changing growth, margins and valuation assumptions.
Change the margin alone until the model value at 2027-09-15 equals the latest close of $30.26. Financial period 2026-06-30. All other published assumptions remain fixed. This is a conditional test, not a claim about what the market expects.
USD per share at the published target date. Each test changes one assumption, holding the others fixed. Dots mark the published target; the dashed line marks the latest close. Ranges are not probabilities.
Required return ±1 point creates the largest change in this one-assumption test. 0 of 4 tests cross the latest share price. These ranges are sensitivity checks, not probabilities.
A large range means the conclusion depends heavily on the selected inputs. More methods agreeing does not prove those shared inputs are correct.
Inspect the target assumptions ↓Discounts cash after tax and investment. Growth, capital needs and the required return all matter.
Uses current positive statement earnings and peer P/E. Different earnings definitions or growth prospects can explain the gap.
Values operating earnings before depreciation. High maintenance spending can make this look more generous than cash-flow value. Keeping the same peer multiple but using the target model's longer-run operating margin changes this reference from $90.99 to $84.85. Capital spending, the required return and the valuation date still differ from the target model.
Applies the peer price of sales. It does not require this company to earn the same margin as its peers.
Uses a longer-run operating margin with no sales growth. Maintenance investment is assumed to match depreciation.
Uses recent cash after capital spending. Temporary working-capital releases can make one period unusually strong.
Uses recorded common equity. Book value can differ considerably from realisable asset value.
Current-value references using the starting inputs. The published target has a future date and its own assumptions. These references are not averaged into it. User edits in the valuation section remain separate.
Use different methods to test the price. Compare their assumptions and results before drawing a conclusion.
Compare several scenarios before drawing a conclusion.
Green values are above the current share price; red values are below it. Colours describe this model comparison, not the chance of a return.
These are modelled amounts, not company guidance or analyst forecasts. “Later value” covers the period after year five.
| Method | Starting value | Basis |
|---|---|---|
| Discounted cash flow | $66.79 | Five-year forecasts and a continuing value; uses your growth, profitability and discount assumptions. |
| Peer price / earnings | $55.61 | Trailing statement EPS of $1.7591 × the selected P/E. The starting multiple is the median of 10 same-industry peers. |
| Peer enterprise value / EBITDA | $90.99 | Apply the median of 11 industry peers to trailing EBITDA, then deduct net debt and other ownership claims to reach a value per common share. |
| Peer enterprise value / sales | $44.69 | Apply the median of 12 industry peers to trailing revenue, then deduct net debt and other ownership claims to reach a value per common share. |
| Steady operating profit | $10.42 | Hold sales flat, start with the median operating margin from 5 annual results, tax the profit and value it as a continuing annual amount. |
| Cash-yield reference | $36.94 | Cash after capital spending per current share divided by the required yield. The starting 7% yield is an editable illustration, not a market estimate. |
| Peer price / common book | $45.82 | Reported equity less preferred stock, per current share, multiplied by the median common-book multiple of 7 peers. |
Dots mark the selected values; bars show the lower and higher illustrations. The dashed line marks the latest close. These ranges are not confidence intervals. Several methods use the same financial inputs and peers; agreement is not independent confirmation. All are shown per common share in USD.
Funding needs, adverse conditions and the effect of a holding on your portfolio.
Review borrowing and company disclosures alongside interest rates and commodity markets.
Balance-sheet figures from 2026-09-11. Cash may be needed to run the business.
Illustration: interest rates rise by 1 percentage point on the stated portion of debt. Existing fixed rates and hedges may delay or reduce the effect. This is not a debt-maturity schedule.
Each dot is one shared week. Bond and commodity funds are price proxies; their returns also reflect fund construction and expenses.
Correlation ranges from −1 to +1. A relationship can change and may reflect broader market movements. It does not prove a customer, currency or commodity exposure.
In fiscal 2026, 2025 and 2024, no individual end-user customer accounted for 10% or more of our net revenues. See Note 1 for e-commerce partners that accounted for over 10% of our total accounts receivable.Read in the filing ↗
We may not be able to identify appropriate business opportunities that benefit our business strategy or otherwise satisfy our criteria to undertake such opportunities. Even if we do identify potential strategic transactions, we may not be successful in negotiating favorable terms in a timely manner or at all or in consummating the transaction, and even if we do consummate such a transaction, it may not generate sufficient revenue to offset the associated costs, may not otherwise result in the intended benefits or may result in unexpected difficulties and risks. Macroeconomic factors, such as f…Read in the filing ↗
As of April 3, 2026, we had an aggregate of $8,275 million of outstanding indebtedness that will mature in calendar years 2027 through 2033, and $1,495 million, net of our letters of credit, available for borrowing under our revolving credit facility. See Note 10 of the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K for further information on our outstanding debt. Our ability to meet expenses, comply with the covenants and the springing maturity provisions under our debt instruments, pay interest and repay principal for our substantial level of indeb…Read in the filing ↗
Compare your current mix with a proposed holding in GEN. Holdings entered here are used for this calculation and are not saved.
Shows contributions to variance using shared weekly observations. A negative contribution means a holding offset some movements over this period.
Results against forecasts, your saved research, review decisions and data checks.
No material change requires a new assessment.
Understand the business. Review sales, profit and cash generation. Open the evidence link beneath each conclusion.
Test the assumptions. A valuation is a scenario. Change growth, margins and the discount rate to see how much the result depends on them.
Keep track. Save your own reasons and conditions. Revisit them after results. Figures show their observation dates. Data notes explain unavailable information.
Follow the forecasts behind the current assessment. Earlier versions remain in the full record. Price movements alone do not settle the business case.
| Measure / period | Forecast | Reported | Difference | Status / recorded |
|---|---|---|---|---|
| Sales2027-06-30 | $5,840,850,000 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live · Reporting period had begun |
| Operating profit2027-06-30 | $2,375,266,880 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live · Reporting period had begun |
| Cash after capital spending2027-06-30 | $1,251,361,163 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live · Reporting period had begun |
| Sales2028-06-30 | $6,527,149,875 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live |
| Operating profit2028-06-30 | $2,588,111,851 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live |
| Cash after capital spending2028-06-30 | $1,398,507,860 | Awaiting full-year result | — | Waiting for resultsRecorded 2026-09-16 · Live |
Forecasts are frozen when recorded. Actuals use the matching full financial year or four reported quarters, on the forecast's stated profit basis. Dated results are retained; restatements are recorded separately. Forecasts made after the period began are identified. Revisions, overlapping periods and preview records are not independent evidence of forecasting skill.
Set measurable conditions for your investment case, then compare them with new company data.
Margin and cash conditions use the latest trailing statements where available. Revenue growth compares reported annual years. Factor figures through 2026-09-11.
Through 2026-06-30. Compare the next quarter with the same period a year earlier. Check whether growth speeds up or slows down.
Through 2026-06-30. Check whether the next results retain the latest margin. Separate recurring improvements from one-off gains.
Through 2026-06-30. Check the cumulative result as each new quarter is added. Compare the same number of quarters last year.
Compare growth with the previous year and the current forecast.
Check whether operating profit keeps pace with sales.
Check whether profit is turning into operating cash.
Check whether debt is falling relative to earnings.
Check whether analysts raised or lowered the same fiscal-period estimate.
Keep a dated copy of your reasoning, valuation assumptions and conditions. New saves preserve earlier versions.
Conditions are checked against the latest available figures when you open this report. This does not place trades or send email alerts.
Sign in to keep your research and review changes over time.
Stored financial statements changed; the revised figures need checking. The model version changed. The published model version has been replaced. Record the new calculation basis even if the rating is unchanged. Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
| Measure | At publication | Latest | Change |
|---|---|---|---|
| Quarterly sales growth | 6.28% | 6.28% | Within starting range |
| Quarterly operating margin | 33.16% | 33.16% | Within starting range |
| Operating cash / profit | 1.49× | 1.49× | Within starting range |
| Net debt / EBITDA | 2.92× | 2.92× | Within starting range |
Recheck the business, assumptions and valuation. The target keeps its original end date until that horizon expires. A routine data refresh does not issue a new rating.
New results, revised financial statements, a material company disclosure, a change in the valuation method or failing cash and debt checks trigger a review. Same-period guidance revisions require at least 5% for EPS or 10% for other measures. Consensus EPS revisions require 10% and at least three analysts.
A price-only signal must persist for 14 days across separate completed weeks. Rating changes normally wait at least 30 days and must clear five-percentage-point entry and exit bands. A direct Buy-to-Sell or Sell-to-Buy change requires material company evidence.
Missing essential data, an unresolved material event or a share-basis change can suspend a call immediately. An expired target or data check more than three days overdue is not shown as an active rating. Original assessments remain in the record.
A reviewed target normally changes only by 5% or more; a rating change or an expired horizon can also require a new assessment. These are explicit research-policy thresholds, not statistically proven trading rules. Policy sm-review-2-research.
| Published | Rating | Target | Target date | Reason |
|---|---|---|---|---|
| 2026-09-16 · 3 ↗ | Hold | $38.17 | 2027-09-15 | Stored financial statements changed; the revised figures need checking. The model version changed. The published model version has been replaced. Record the new calculation basis even if the rating is unchanged. Neither a positive nor a negative classification meets the stated requirements. Review borrowing. |
| 2026-09-16 · 2 ↗ | Hold | $38.17 | 2027-09-15 | The model version changed. The published model version has been replaced. Record the new calculation basis even if the rating is unchanged. Neither a positive nor a negative classification meets the stated requirements. Review borrowing. |
| 2026-09-15 · 1 ↗ | Hold | $38.17 | 2027-09-15 | First recorded assessment. |
Stored financial statements changed; the revised figures need checking.
Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
Stored financial statements changed; the revised figures need checking.
The model version changed.
The published model version has been replaced. Record the new calculation basis even if the rating is unchanged.
Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
The model version changed.
The published model version has been replaced. Record the new calculation basis even if the rating is unchanged.
Neither a positive nor a negative classification meets the stated requirements. Review borrowing.
First recorded assessment.
Forecast errors in sales, operating profit and cash are recorded separately from share-price outcomes. Preview records never enter live accuracy figures.
There are no completed live operating forecasts to assess yet. A useful record takes time; historical fits and preview scenarios are not substituted for it.
| Recorded / model | Period ending | Measure | Forecast (USD) | Actual (USD) | Status |
|---|---|---|---|---|---|
| 2026-09-15business-forecasts-2-period-basis · live | 2027-06-30 | Sales | 5,840,850,000 | — | Waiting for results |
| 2026-09-15business-forecasts-2-period-basis · live | 2027-06-30 | Operating profit | 2,375,266,880 | — | Waiting for results |
| 2026-09-15business-forecasts-2-period-basis · live | 2027-06-30 | Cash after capital spending | 1,251,361,163 | — | Waiting for results |
| 2026-09-15business-forecasts-2-period-basis · live | 2028-06-30 | Sales | 6,527,149,875 | — | Waiting for results |
| 2026-09-15business-forecasts-2-period-basis · live | 2028-06-30 | Operating profit | 2,588,111,851 | — | Waiting for results |
| 2026-09-15business-forecasts-2-period-basis · live | 2028-06-30 | Cash after capital spending | 1,398,507,860 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Sales | 5,840,850,000 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Operating profit | 2,375,266,880 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Cash after capital spending | 1,251,361,163 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Sales | 6,527,149,875 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Operating profit | 2,588,111,851 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Cash after capital spending | 1,398,507,860 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Sales | 5,840,850,000 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Operating profit | 2,375,266,880 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2027-06-30 | Cash after capital spending | 1,251,361,163 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Sales | 6,527,149,875 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Operating profit | 2,588,111,851 | — | Waiting for results |
| 2026-09-16business-forecasts-2-period-basis · live | 2028-06-30 | Cash after capital spending | 1,398,507,860 | — | Waiting for results |
Forecasts are frozen when recorded. Actuals use the matching full financial year or four reported quarters, on the forecast's stated profit basis. Dated results are retained; restatements are recorded separately. Forecasts made after the period began are identified. Revisions, overlapping periods and preview records are not independent evidence of forecasting skill. Read the share-price assessment record ↗
Automated checks cover dates, units and accounting relationships. A matched filing fact confirms that reported amount and basis; it does not establish recurring earnings or validate a forecast.
Value operating cash flow or comparable earnings; deduct debt and other ownership claims where appropriate.
17 of 18 checks passed. 117 financial cells have a matched filing basis; 1 other recorded cells have not been matched to a standard filing fact here. Missing company-specific measures and forecast coverage are explained in their sections.
| Check | Status | What it checks |
|---|---|---|
| Price observations | Passed | Prices must be positive, finite, in date order and have no duplicate weeks. |
| Historical price basis | Passed | No material split or distribution discontinuity was found between the two price histories. |
| Price date | Passed | The latest completed close must be no more than 14 days old. |
| Business model | Passed | Value operating cash flow or comparable earnings; deduct debt and other ownership claims where appropriate. |
| Earnings and share units | Passed | Earnings, profit and weighted shares are reconciled before per-share growth is used. No conflicting per-share comparisons were found. |
| Balance-sheet totals | Passed | Assets must reconcile to liabilities and equity, allowing separately reported minority interests and 1% rounding tolerance. No conflicting complete balance sheets were found. |
| Consolidated depreciation | Passed | Depreciation from a cash-flow reconciliation is distinguished from expense components. Conflicting amounts are excluded until the statement establishes their scope. No unresolved component-versus-total conflict was found. |
| Statement currency | Passed | Valuation cash flows and the share price must use the same currency; amounts are not silently converted. |
| Publication dates | Passed | Future financial periods and future filing dates cannot enter the assessment. |
| Known reporting dates | Passed | 0 of the latest four quarters have no stored publication date. These cannot support a point-in-time claim. |
| Cash-flow identities | Passed | Operating cash plus negative capital spending must equal cash after capital spending. All comparable stored periods reconcile within 1%. |
| Operating-profit basis | Passed | 4 of the latest four quarters have an explicit reported operating-income basis. EBIT may include non-operating items; it is not automatically treated as operating income. |
| Filed and stored totals | Review needed | 3 trailing input totals differ from the stored snapshot. The matched filed totals are used in this report; original figures remain in the reconciliation table. |
| Ownership source reconciliation | Passed | No unresolved ownership source conflicts were found. |
| Financial period | Passed | The valuation needs a financial period no more than 150 days old. |
| Corporate-action basis | Passed | A split after the financial period needs a reviewed reconciliation of shares, earnings per share and the quoted price. |
| Share count | Passed | Per-share enterprise and book values require a positive current share count. |
| Ownership and debt amounts | Passed | Debt, cash, preferred stock and minority interests cannot be negative. |
| Input | Stored snapshot | Matched filed quarters |
|---|---|---|
| Operating income | 2138000000 | 2117000000 |
| Preferred stock | 0 | |
| Minority interest | 0 |
SM Virtual Analyst is an automated research report for general information. Its model ratings and price targets are not personal investment advice, an offer to trade, or a guarantee of value or return. The report does not consider your financial circumstances, objectives, tax position or capacity for loss.
Reported figures can be delayed, incomplete, corrected or restated. Source checks confirm specific reported amounts and accounting relationships; they do not audit a company, establish recurring earnings or prove that a forecast is accurate. Missing information is not assumed to be zero unless a particular illustration expressly says so.
Valuations depend on the stated business model, assumptions and available data. Scenario ranges are illustrations, not probabilities, confidence intervals or limits on loss. Ratings use the disclosed review policy; they are not an independently validated prediction of future returns. Past performance and historical comparisons do not predict future results. An investment can lose its entire value.
Prices, financial periods, publication dates, model versions and review dates are shown in the report. The dated published assessment is separate from editable valuation illustrations. Unless expressly stated otherwise, price comparisons exclude dividends, fees and taxes. Check the latest company filings and subsequent events before making a decision, and seek qualified advice when needed.
Search by ticker symbol or company name and select a result to open its chart.
Start typing to find a stock or ETF.
Choose one or more countries for market search, or include every covered market.
Currently searching United States