Gen Digital (GEN) AI Stock Analysis

• Market Cap: $16.30B
• Dividend Yield: 1.89%
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.94
• Revenue Growth: 10.34%
• EPS Growth: 0.68%
• Country: US
• Employees: 3,400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.64
• Shares Outstanding: 615,869,140
• 10 Day Avg. Volume: 3,080,425
• 30 Day Avg. Volume: 3,314,868
• PEG Ratio: 2.68
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 13.52
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 6.40
• Enterprise Value/Gross Profit: 8.02
• Enterprise Value/Ebitda: 13.07
• 1Y Price Target: $35.71
• Price Target Upside: 34.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $31.00 ▲(16.89% Upside)

Gen Digital's overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth and strategic advancements. However, technical analysis suggests bearish momentum, and valuation metrics indicate potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Gen Digital's products, enhancing its market position and supporting long-term expansion.

Product Innovation

Continued product innovation strengthens Gen Digital's competitive edge, ensuring relevance in the rapidly evolving cybersecurity landscape.

Customer Loyalty

High customer satisfaction and loyalty, as indicated by a strong Net Promoter Score, suggest sustained revenue through customer retention.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.

Net Profit Margin Decline

Declining net profit margins could pressure profitability, requiring efficiency improvements to sustain long-term financial health.

Operational Risks

Operational risks and uncertainties can impact business performance, necessitating strategic planning to mitigate potential adverse effects.

Gen Digital Business Overview & Revenue Model

Company Description

Gen Digital Inc. provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Norton 360, an integrated platform provides extensive cyber safety coverage and a subscription service providing protection for PCs, Macs, and mobile devices against malware, viruses, adware, ransomware, and other online threats on various platforms; and Norton and LifeLock identity theft protection solution that offers monitoring, alerts, and restoration services to its customers. The company also provides Norton Secure VPN solution, which enhances security and online privacy by providing an encrypted data tunnel; Privacy Monitor Assistant, an on-demand, white glove service where agents help members delete personal information from data brokers online; Home Title Protect product that detects fraud and notifies members; and Avira Security, a consumer-focused portfolio of cybersecurity and privacy solutions. It offers Dark Web Monitoring product, which looks for personal information of its Norton 360 members on the Dark Web; and Social Media Monitoring solution that helps to keep customers' social media accounts safer by monitoring them for account takeovers, risky activity, and inappropriate content. The company also provides AntiTrack product, which helps to keep personal information and browsing activity private by blocking trackers and disguising digital fingerprints online; and Online Reputation Management solution that manages online search results, personal branding, and digital privacy. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is based in Tempe, Arizona.

How the Company Makes Money

Gen Digital generates revenue primarily through the sale of subscription-based cybersecurity products and services. Its key revenue streams include individual and enterprise subscriptions for antivirus software, identity theft protection, and secure VPN services. The company also earns income from partnerships with other technology firms, which may involve bundled offerings or co-marketing initiatives. Additionally, Gen Digital may leverage data analytics to enhance its product offerings and improve customer retention, further contributing to its overall earnings.

Gen Digital Financial Statement Overview

Summary

Gen Digital demonstrates robust revenue growth and profitability, with strong cash flow generation. However, high leverage and declining net profit margins are areas of concern. The company should focus on improving net profitability and managing its debt levels to ensure long-term financial stability.

Income Statement

Gen Digital shows strong revenue growth with a 7.42% increase in TTM, supported by healthy gross and EBIT margins of 79.82% and 38.66% respectively. However, the net profit margin has decreased to 14.12% from previous periods, indicating some pressure on net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 3.75, suggesting significant leverage, which could pose risks if not managed properly. Return on equity is solid at 26.88%, reflecting efficient use of equity, but the equity ratio is relatively low at 14.45%, indicating a reliance on debt financing.

Cash Flow

Operating cash flow and free cash flow have shown growth, with a free cash flow growth rate of 11.86% in TTM. The free cash flow to net income ratio is strong at 98.76%, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is moderate at 47.80%, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2019	Dec 2018
Income Statement
Total Revenue	4.23B	3.94B	3.80B	3.32B	4.73B	4.85B
Gross Profit	3.37B	3.16B	3.07B	2.73B	3.68B	3.81B
EBITDA	2.07B	2.03B	1.60B	1.56B	350.00M	1.33B
Net Income	597.00M	643.00M	607.00M	1.35B	31.00M	1.16B
Balance Sheet
Total Assets	16.36B	15.49B	15.79B	15.95B	15.94B	15.76B
Cash, Cash Equivalents and Short-Term Investments	828.00M	1.01B	846.00M	750.00M	2.04B	2.16B
Total Debt	8.86B	8.31B	8.65B	9.82B	4.45B	5.03B
Total Liabilities	13.99B	13.23B	13.65B	13.75B	10.20B	10.71B
Stockholders Equity	2.37B	2.27B	2.14B	2.20B	5.74B	5.06B
Cash Flow
Free Cash Flow	1.35B	1.21B	2.04B	751.00M	1.29B	808.00M
Operating Cash Flow	1.37B	1.22B	2.06B	757.00M	1.50B	950.00M
Investing Cash Flow	-971.00M	-100.00M	2.00M	-6.55B	-241.00M	-21.00M
Financing Cash Flow	-214.00M	-970.00M	-1.96B	4.68B	-1.21B	-3.48B

Gen Digital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEN, the sentiment is Negative. The current price of 26.52 is below the 20-day moving average (MA) of 27.74, below the 50-day MA of 29.24, and below the 200-day MA of 28.01, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 28.92 is Positive, neither overbought nor oversold. The STOCH value of 18.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEN.

Gen Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	72 Outperform	$63.94B	33.30	165.17%	―	14.46%	48.06%
NET	70 Neutral	$73.18B	―	-11.04%	―	27.32%	-11.94%
CYBR	67 Neutral	$24.78B	1,777.39	-10.35%	―	39.45%	-982.51%
ZS	67 Neutral	$47.53B	―	-2.70%	―	23.31%	31.04%
CRWD	66 Neutral	$121.63B	721.64	-8.99%	―	23.46%	-270.07%
GEN	64 Neutral	$16.30B	27.63	27.54%	1.89%	10.34%	0.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%