GEN
Gen Digital Inc.$22.57
Buy
Target $33.99
Report: Mar 07, 2026Technology • Software - Infrastructure • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$22.57+50.6%
Rec: BuyConviction: High
Entry Target
$22.57
(0% above current)
Fair Value
$33.99
(51% above current)
Stop Loss
$15.45
(32% below current)
Position Size
Full
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$32.22
52 Week Low$18.20
Avg. 3 Month Volume6.59M
Efficiency
LTM Gross Margin78.8%
LTM EBITDA Margin46.5%
LTM EBIT Margin36.0%
LTM Operating Margin36.7%
LTM ROA3.8%
LTM ROE25.6%
LTM ROIC21.4%
LTM ROCE13.2%
Capital Structure
Market Cap (MM)$11.4B
Enterprise Value (MM)$19.2B
Shares Outstanding611.00M
Total Debt (MM)$8.41B
Cash & Equivalents (MM)$619.00M
LTM Net Debt (MM)$7.79B
LTM Net Debt/EBITDA3.5x
Growth
TTM Rev. Growth21.5%
Last 3-Yr Rev. CAGR15.0%
Last 3-Yr EBITDA CAGR20.5%
Last 3-Yr EPS CAGR1.4%
Valuation
Street Target Price$31.50
LTM EV/Revenue4.1x
LTM EV/Gross Profit5.1x
LTM EV/EBIT11.3x
LTM EV/EBITDA8.7x
LTM P/E18.9x
LTM EV/FCF12.5x
LTM P/FCF7.4x
LTM P/TB4.1x
LTM P/B4.9x
Dividend Yield2.7%
Payout Ratio51.0%
Executive SummarySituation: Current price is $22.57 versus fair value $33.99 (50.6% expected return), and valuation confidence is stable. Debate: Bull case depends on Deleveraging to <3x Net Debt/EBITDA. Conclusion: Recommendation is Buy with Full sizing and Long-Term horizon.
Bull Case
Dominant market position with 78% retention and 32% FCF margins provides a massive valuation floor; AI-driven cost cuts have structurally reset operating margins above 40%; MoneyLion integration opens a new $1B+ growth vertical in financial wellness.
Bear Case
High net debt of $7.8B (3.5x EBITDA) creates interest rate sensitivity; organic revenue growth has slowed to 3.2% as the North American market reaches saturation; Microsoft Defender provides a 'good enough' free alternative that could pressure long-term pricing.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Deleveraging to <3x Net Debt/EBITDA. Management has committed to reaching this threshold by FY2027, which we expect will trigger a significa...
Near-Term (0-6 months)Impact: Critical
Full Integration of MoneyLion 'Engine' Marketplace. Launching integrated financial wellness features within the LifeLock app will validate t...
Long-Term (18+ months)Impact: Moderate
Gen Digital is highly relevant now because it is trading at a cyclical trough multiple (8.9x P/FCF) just as it begins to report the first cl...
Primary Risks
Concern: Medium
Moat Erosion from OS-Integrated Security. Microsoft Defender and Apple's increasing focus on privacy could commoditize basic antivirus and V...
Concern: Low
Interest Rate Sensitivity on Variable Debt. Approximately $5.9 billion of debt is in variable-rate term loans tied to SOFR, making interest...
Concern: Medium
The governance structure is optimized for a 'Strategic Pivot' phase. The Governance Outcome Tree suggests: 1. Status Quo: Pilette executes t...
Recent Activity
2026-02-06SEC Filing (8-K)
+8.11%Gen Digital Inc. reports strong Q3 FY26 results with 26% revenue growth and raises FY26 guidance
2025-08-08SEC Filing (8-K)
+7.71%Gen Digital Inc. reported strong Q1 FY26 results with 30% revenue growth and raised full-year guidance.
2025-05-07SEC Filing (8-K)
+8.24%Gen Digital reports record Q4 and full year fiscal 2025 results with accelerated revenue growth and raises FY26 guidance.
2024-10-31SEC Filing (8-K)
+8.18%Gen Digital reports Q2 FY25 results with 3% revenue growth and raises annual guidance.
2024-05-10SEC Filing (8-K)
+15.34%Gen Digital delivers fifth consecutive year of organic growth with record profitability in fiscal 2024.
Valuation Table
9.8/10Decision Grade
Scenario Range
$25
Bear
$39
Base
$56
Bull
$23