Gartner Inc (IT)'s Winning Formula: Financial Metrics and Competitive Strengths

Exploring the Robust Financial Health and Growth Prospects of Gartner Inc

Gartner Inc (IT, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $498.32 per share, Gartner Inc has experienced a daily increase of 1.11% and a significant three-month growth of 13.78%. A detailed analysis, supported by the GF Score, indicates that Gartner Inc is poised for substantial future growth.

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What Is the GF Score?

The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Gartner Inc boasts a GF Score of 94, reflecting its high potential for market outperformance.

Understanding Gartner Inc's Business

Based in Stamford, Connecticut, Gartner Inc provides independent research and analysis on information technology and related industries. The company delivers its research through reports, briefings, and updates primarily to CIOs and business executives involved in IT budget planning. Gartner Inc also offers consulting services and operates through three business segments: Research, Conferences, and Consulting, with the majority of its revenue derived from the Research segment. Gartner's market cap stands impressively at $38.4 billion, with annual sales reaching $6.06 billion and an operating margin of 18.9%.

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Financial Strength Breakdown

Gartner Inc's financial robustness is evident through its Interest Coverage ratio of 9.54, significantly above the benchmark of 5 set by investment guru Benjamin Graham. The company's Altman Z-Score of 5.62 further underscores its low risk of financial distress. Additionally, a Debt-to-Revenue ratio of 0.48 showcases Gartner's prudent debt management.

Profitability and Growth Metrics

Gartner Inc's profitability is highlighted by its impressive Operating Margin, which has consistently increased over the past five years, reaching 18.81% in 2023. The company's Gross Margin also reflects a steady increase, demonstrating its efficiency in converting revenue into profit. With a Predictability Rank of 3.0 stars, Gartner Inc offers reliability and confidence to investors.

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Conclusion

Considering Gartner Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.