Infosys Limited American Depositary Shares (INFY)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for businesses that earn high returns on capital, convert profits into cash, and sell at a sensible price. Infosys fits parts of that picture. In the latest reported quarter labeled 2026-Q2, revenue was $5.1B and net income was $819.0M, a 16.12% net margin. The balance sheet is conservative, with debt-to-equity of 0.10 and an Altman Z-Score of 6.70. FairStock calculations at the 2026-10-13 close show a P/E of 14.07, EV/EBITDA of 9.88, and P/B of 9.58. It also calculates ROE of 32.0%, ROCE of 15.3%, trailing free cash flow of $3.8B, and an FCF yield of 7.3%. That cash generation supports a 4.84% dividend yield. The stock trades at $11.40, giving a market cap of $52.0B. On earnings, it is not expensive; on book value, it is not cheap. FairStock's Graham Number is $6.59, implying a margin of safety of -72.99%, so a conservative asset-and-earnings test says the price is well above intrinsic value. Growth is the weak spot: the provided figures show low single-digit revenue and profit growth, and the PEG ratio is 11.35. The Piotroski F-Score is 6/9, decent but not superior. FairStock's Lynch category is 'none' because only 0 years of filed results are available and it needs 3. Infosys has scale—328,062 employees—and exposure to AI, cloud, and digital services, but competition and slow client spending are real. At this price, the market is pricing modest expectations. I would want to see faster growth and a wider margin of safety before calling it a classic bargain.

In plain English: Infosys provides consulting, technology, outsourcing, and digital services worldwide. The business looks financially strong: it earns a healthy profit margin, carries little debt, and produces plenty of cash. At the recent price, the shares look inexpensive compared with current profits, but growth has been slow and a conservative value estimate is well below the market price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer