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Gen Digital

GEN
64
Software - Infrastructure · Technology
Price
$26.74
-0.27 (-1.00%)
Market Cap
$16.11B
Exchange
NASDAQ
Winston Score
64
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+4.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 591.0M (2022) → 619.0M (2026)

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 offer

Winston Score History

Politician Trades

12 trades / 12mo

6 Congressional buys and 6 sells on GEN in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+27.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+269.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$409M/ year

Rising (+24% vs prior year)

8.2% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

9.9%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$411M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Gen Digital grew revenue 27% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
82.8%
Premium pricing power — 82.8% gross margin
Operating Margin
61.7%
Excellent — 61.7% operating margin
ROCE
7.3%
Weak — 7.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+13.6%
Fast-growing sales (13.6% YoY)
EPS YoY
+69.5%
Earnings growing fast (69.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
164%
Turns 164% of profit into real cash
FCF Margin
33.4%
Converts sales into free cash efficiently (33.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
3.14
Heavy debt load (3.14)
Interest Cover
7.26x
Adequate interest coverage (7.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
16.6x
Fair value — P/E 16.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+7.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (16.6 → 8.9)

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Dividends

Dividend Yield
1.93%
Small dividend — 1.93% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+0.0%
Dividend flat

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