Gen Digital Inc. (GEN) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Infrastructure
Is Gen Digital Inc. a safe investment right now?
Gen Digital Inc.'s Altman Z-Score of 1.07 places it in the distress zone. Our fair value estimate is $20.12 (Watch Zone). Moat rating: 3.1/5 stars.
Could Gen Digital Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.07 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives GEN's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0908 | 1.2 | -0.11 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0152 | 1.4 | 0.02 |
| C · EBIT / Total Assets | EBIT / TA | 0.1037 | 3.3 | 0.34 |
| D · Market Cap / Total Liabilities | MCap / TL | 0.9321 | 0.6 | 0.56 |
| E · Revenue / Total Assets | Rev / TA | 0.254 | 1.0 | 0.25 |
How has GEN's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.48 | Distress |
| 2023 | 0.82 | Distress |
| 2024 | 0.9 | Distress |
| 2025 | 1.07 | Distress |
Source: Calculated from GEN's latest 10-K filing on SEC EDGAR.
What is Gen Digital Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $1.15 | Proprietary blend of reported actuals (3Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $1.03 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.55 | 11 analysts consensus |
| Trailing P/E | 20.6x | Current market pricing |
| Fair P/E (β discount) | 17.5x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $30.01 (11 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Gen Digital Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up GEN's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is GEN's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 32.1% | — |
| 2023 | 9.9% | Declining |
| 2024 | 10.4% | Stable |
| 2025 | 15.3% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Gen Digital Inc.'s dividend safe?
Can Gen Digital Inc. afford its dividend?
Payout ratio is 51.5%. FCF covers the dividend 3.2x. 14 consecutive years of payments.
Gen Digital Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.9B | $3.8B | $2.8B | Rising |
| Net Income | $0.6B | $0.6B | $0.8B | Declining |
| Free Cash Flow | $1.2B | $2.0B | $1.0B | Rising |
| Gross Margin | 80.3% | 80.8% | 85.4% | Declining |
Recent events that affect our GEN analysis
GEN earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.65. Revenue estimate: $1.24B. Our current Fair Value: $20.12 — a significant beat or miss could shift this estimate.
GEN analyst consensus: 58% bullish (7 of 12 analysts)
1 Strong Buy, 6 Buy, 5 Hold, 0 Sell, 0 Strong Sell. Consensus target: $30.01 (50.1% upside). Compare with our independent Fair Value: $20.12.
GEN paid $0.1250/share dividend
Dividend Safety Grade: A. Payout ratio: 51.5%.
GEN beat EPS estimates by 1.4%
Reported EPS: $0.64 vs estimate $0.63. Earnings strength supports our Fair Value of $20.12 (0.7% above current price).
GEN paid $0.1250/share dividend
Dividend Safety Grade: A. Payout ratio: 51.5%.
GEN beat EPS estimates by 1.6%
Reported EPS: $0.62 vs estimate $0.61. Earnings strength supports our Fair Value of $20.12 (0.7% above current price).
GEN paid $0.1250/share dividend
Dividend Safety Grade: A. Payout ratio: 51.5%.
GEN beat EPS estimates by 6.7%
Reported EPS: $0.64 vs estimate $0.60. Earnings strength supports our Fair Value of $20.12 (0.7% above current price).
GEN paid $0.1250/share dividend
Dividend Safety Grade: A. Payout ratio: 51.5%.
GEN beat EPS estimates by 1.3%
Reported EPS: $0.59 vs estimate $0.58. Earnings strength supports our Fair Value of $20.12 (0.7% above current price).
GEN paid $0.1250/share dividend
Dividend Safety Grade: A. Payout ratio: 51.5%.
GEN beat EPS estimates by 1.6%
Reported EPS: $0.56 vs estimate $0.55. Earnings strength supports our Fair Value of $20.12 (0.7% above current price).
Common questions about Gen Digital Inc.
What is Gen Digital Inc. stock price today?
Gen Digital Inc. (GEN) stock price is $19.99 as of the latest market close, traded on the NASDAQ exchange.
What does Gen Digital Inc. do?
Gen Digital Inc. engages in the provision of cyber safety solutions for individuals, families, and small businesses. It offers security and performance management, identity protection, and online privacy, as well as technology platform.
What is Gen Digital Inc. market cap?
Gen Digital Inc. has a market capitalization of $12.33B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is GEN in?
Gen Digital Inc. operates in the Technology sector, specifically within the Software - Infrastructure industry. It trades on the NASDAQ under the ticker symbol GEN.
Is GEN stock overvalued or undervalued?
Based on our valuation model, Gen Digital Inc. trades 0.7% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $20.12
- Current Price: $19.99
- Valuation Zone: Watch Zone
What is GEN stock forecast and analyst target price?
Based on 11 Wall Street analysts, the consensus price target for Gen Digital Inc. is $30.01, implying upside of 50.1% from the current price.
- Analyst High Target: $46.00
- Analyst Low Target: $22.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Gen Digital Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Gen Digital Inc.:
- Revenue growth (current year est.): 26.1%
- EPS growth (current year est.): 14.7%
- Revenue growth (next year est.): 5.4%
- EPS growth (next year est.): 12.6%
What are Gen Digital Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $3.9B | Rising |
| Net Income | $0.6B | Declining |
| Free Cash Flow | $1.2B | Rising |
| Gross Margin | 80.3% | Declining |
What is GEN's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.6x
- Forward P/E (next 12 months est.): 7.0x
- FairValueLabs Fair P/E: 17.5x
How volatile is GEN stock?
Gen Digital Inc. has a beta of 1.15, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Gen Digital Inc. have?
Gen Digital Inc.'s balance sheet shows:
- Total Cash: $616.0M
- Total Debt: $8.47B
- Net Cash Position: $-7.86B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Gen Digital Inc.'s free cash flow?
Gen Digital Inc. generated $1.32B in trailing twelve-month free cash flow (from $1.54B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Gen Digital Inc. pay a dividend, and is it safe?
Yes, Gen Digital Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.5%
- Payout Ratio: 51.5%
- Consecutive Years Paid: 14
- 5-Year Dividend Growth: -24.2%
- FairValueLabs Safety Grade: A
Is Gen Digital Inc. at risk of going bankrupt?
Gen Digital Inc.'s Altman Z-Score is 1.07, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Gen Digital Inc. have a durable competitive advantage?
Gen Digital Inc. scores 3.1/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is GEN's return on equity (ROE)?
Gen Digital Inc.'s return on equity is 26.9%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy GEN stock?
GEN shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol GEN
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is GEN a value stock or speculative?
FairValueLabs classifies Gen Digital Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Gen Digital Inc.?
The current CEO of Gen Digital Inc. is Mr. Vincent Pilette.
What is GEN's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $0.97
- Forward EPS (next 12 months est.): $2.87
- Analyst consensus EPS (this year): $2.55
- Analyst consensus EPS (next year): $2.87
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
GEN analysis methodology: How we calculate fair value, Z-Scores, and moat ratings