Fundamental analysis · SEC EDGAR · as of 03/04/2026

Fundamental analysis of Gen Digital Inc.

GEN · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

78

out of 100

Gen Digital Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 37.3%) with wide margins (net margin 19.5%) and a business that keeps growing (14.4% a year). On fundamental quality it scores 78 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +14.4%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Gen Digital is the home of Norton, Avast and LifeLock: consumer cybersecurity, from the classic antivirus to identity and financial-theft protection. A massive, mature and highly profitable subscription business.

What will shape its future

  • Subscriber retention: its thesis lives on tens of millions renewing every year.
  • Sizable debt inherited from its mergers, the cash flow's priority.
  • The silent threat: free protection built into Windows and browsers.

Breakdown by area

I.Growth
69

EPS growth: 11.9% · Revenue growth: 14.4%

II.Profitability
90

Net margin: 19.5% · ROE: 37.3% · ROIC: 13.3%

III.Financial health
74

Net debt/EBITDA: 2.98x · FCF: 30.5%

Source: SEC EDGAR · as of 03/04/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 59%
ROEbeats 80%
Growthbeats 51%
Cash generationbeats 80%
Less debtbeats 17%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Gen Digital Inc. strengths

  • High gross margin (78.5%), pointing to pricing power.
  • Excellent free-cash-flow generation (FCF margin of 30.5%): profit turns into real cash.
  • Reasonable return on capital: its ROE (37.3%) is inflated by buybacks, but ROIC —which strips that out— is 13.3%.
  • High net margin (19.5%): the business is clearly profitable.

Gen Digital Inc. risks and weaknesses

  • Its net debt has grown over the period.

Gen Digital Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20212,5515547002,668
20222,7968369681,849
20233,3171,3347519,012
20243,8006072,0447,758
20253,9356431,2067,253
20265,0009731,5237,785

Between 2021 and 2026, revenue went from $2,551M to $5,000M (+96%) and net income went from $554M to $973M (+76%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Dividend

$0.5

per share, yearly

32.1% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Gen Digital Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Gen Digital Inc. a good company to invest in?

In terms of business quality, Gen Digital Inc. scores 78 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Gen Digital Inc. a profitable company?

Yes. Gen Digital Inc. shows a net margin of 19.5% and an ROE of 37.3%, a sign of a profitable business.

Does Gen Digital Inc. have a lot of debt?

A moderate level: its net debt is 2.98 times its EBITDA.

Is Gen Digital Inc. growing?

Its revenue has grown 14.4% annualized in recent years and its earnings per share 11.9%, and without interruption since 2021.

Does Gen Digital Inc. generate cash?

Yes. It converts about 30.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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