One-glance verdict
Undervalued
$62.17 our estimate vs market $30.01
Wall Street consensus: $32.27 (-48.1% lower than our fair-value estimate)
52% below our estimate, below the bear case
Fundamentals snapshot
Gen Digital Inc.
GEN · NMS · Technology · Software - Infrastructure
Current price
$30.01
52-week range
$17.78 - $31.65
Market cap
$17.80B
Balance sheet
Distressed
3.79x Stretched
Net debt $7.53B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 46.4% on equity, ahead of 66% of its peers.
- Risk Insider ownership is only 9.8% (peer median: 17.3%).
- Risk Operating margin compressed from 38.4% to 37.4% over 3 years.
What this company does
Gen Digital Inc.
Gen Digital sells cybersecurity software and services like Norton and Avast, primarily to individuals and small businesses to keep them safe online. Their money mainly comes from people subscribing to these services, which is good because it means they get predictable income each month or year (this predictable income is often called recurring revenue). This focus on subscriptions helps them maintain stable profitability, meaning they keep a good portion of their sales after covering business expenses (their margins).
How the company got here
Gen Digital's story is one of consolidation, bringing together several well-known cybersecurity brands under one umbrella. Its roots trace back to Symantec, founded in 1982, which eventually spun off its enterprise security business. The remaining consumer-focused company became NortonLifeLock. A significant turning point was the acquisition of Avast in 2022, which merged two major players in the consumer cybersecurity space. This merger led to the company rebranding as Gen Digital Inc. in late 2022, reflecting its expanded portfolio and broader strategy in cyber safety.
What it actually does
Gen Digital provides a suite of digital safety solutions designed to protect individuals, families, and small businesses. These solutions cover a range of needs, including protecting devices from malware and viruses, safeguarding personal information from identity theft, and ensuring online privacy. The company's offerings are delivered through a variety of well-known brands, aiming to provide comprehensive protection in an increasingly digital world.
Norton
The Norton brand is a cornerstone of Gen Digital's offerings, providing a range of security and performance tools for computers and mobile devices. This includes antivirus software to protect against threats like malware and viruses, as well as identity theft protection services that monitor credit reports and other personal information. Norton also offers features like VPNs (Virtual Private Networks) to secure online activity and protect sensitive data.
Avast
Avast is another major brand under the Gen Digital umbrella, known for its antivirus software and other digital security tools. Similar to Norton, Avast offers protection for PCs, Macs, and mobile devices against a variety of online threats. Its product line also includes services like secure browsers, VPNs, and cleanup tools designed to enhance both security and device performance.
LifeLock
LifeLock is primarily focused on identity theft protection, a critical service in today's digital landscape. It works by monitoring various sources, such as credit reports and the dark web, for any signs of fraudulent activity related to a customer's personal information. If suspicious activity is detected, LifeLock aims to alert the customer and provide support for restoring their identity.
Other Brands (AVG, Avira, CCleaner, MoneyLion)
Gen Digital also operates other brands that contribute to its cyber safety and financial wellness offerings. AVG and Avira are additional antivirus and security software brands, similar in function to Norton and Avast. CCleaner provides utility software for optimizing computer performance. MoneyLion offers financial wellness solutions, expanding Gen Digital's reach beyond pure cybersecurity into broader digital life management.
What management is betting on now
Gen Digital's strategy centers on evolving from basic antivirus protection to a comprehensive 'cyber safety' platform. They aim to bundle various services—including security, privacy, identity protection, and scam prevention—into a more integrated offering. The goal is to increase customer retention and the average revenue generated per user by providing a broader suite of essential digital life management tools.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$318.00M
FY2025 Q4
$470.00M
FY2026 Q1
$405.00M
FY2026 Q2
$107.00M
FY2026 Q3
$535.00M
FY2026 Q4
$476.00M
FY2027 Q1
$430.00M
FY2027 Q2
$323.00M
Revenue
$1.37B
Net income
$287.00M
Diluted EPS
0.48
Operating cash flow
$326.00M
Free cash flow
$323.00M
Fetching…
Sources
Revenue
$1.34B
Net income
$215.00M
Diluted EPS
0.36
Operating cash flow
$434.00M
Free cash flow
$430.00M
Fetching…
Sources
Revenue
$1.28B
Net income
$512.00M
Diluted EPS
0.83
Operating cash flow
$479.00M
Free cash flow
$476.00M
Fetching…
Sources
Revenue
$1.24B
Net income
$192.00M
Diluted EPS
0.31
Operating cash flow
$541.00M
Free cash flow
$535.00M
Fetching…
Sources
Revenue
$1.22B
Net income
$134.00M
Diluted EPS
0.21
Operating cash flow
$116.00M
Free cash flow
$107.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$135.00M
Diluted EPS
0.22
Operating cash flow
$409.00M
Free cash flow
$405.00M
Fetching…
Sources
Revenue
$1.01B
Net income
$142.00M
Diluted EPS
0.22
Operating cash flow
$473.00M
Free cash flow
$470.00M
Fetching…
Sources
Revenue
$986.00M
Net income
$159.00M
Diluted EPS
0.26
Operating cash flow
$326.00M
Free cash flow
$318.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $62.17 vs current price $30.01
Wall Street consensus is the average analyst price target: $32.27 (-48.1% lower than our fair-value estimate).
Our most-likely fair value is $62.17 a share — about 107.2% above today's price of $30.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $7.5B. Interest coverage 3.8x.
Net debt
$7.53B
Interest coverage
3.79x
Gen Digital Inc.'s profit covers its interest bill about 3.8 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
GEN
BASELINE
Gen Digital Inc.
Total debt $8.12B Interest coverage 3.79x This is the baseline the peer rows are being compared against.
Total debt $1.98B Interest coverage 415.55x +10,872% vs GEN Carries about 109.7x more debt cushion than GEN.
Total debt $9.45B Interest coverage 20.42x +439% vs GEN Carries about 5.4x more debt cushion than GEN.
Total debt $560.50M Interest coverage 103.72x +2,638% vs GEN Carries about 27.4x more debt cushion than GEN.
Total debt $1.87B Interest coverage -33.39x -100% vs GEN This peer has almost no interest-payment cushion compared with GEN.
Total debt $53.00M Interest coverage 38.25x +910% vs GEN Carries about 10.1x more debt cushion than GEN.
What you should know
The case for and against GEN
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 46.4% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 9.8% (peer median: 17.3%).
-
Operating margin compressed from 38.4% to 37.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.23x
Forward P/E
8.99x
P/B
6.49x
P/S
3.41x
EV/EBITDA
10.15x
PEG ratio
1.77x
Profitability
How much profit each dollar creates
Gross margin
77.4%
Operating margin
37.4%
Net margin
23.1%
ROE
46.4%
ROA
8.9%
Health
Liquidity and balance-sheet strength
Debt / equity
2.96x
Current ratio
0.37x
Quick ratio
0.24x
Total debt
$8.12B
Total cash
$583.00M
Growth
How the business has been compounding
Revenue TTM
$5.23B
Revenue 5Y CAGR
15.6%
EPS TTM
1.97
EPS 5Y CAGR
-10.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.78B
Free CF TTM
$1.52B
FCF margin
29.1%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
25.4%
Last ex-div date
2026-11-16