Infosys Stock Buy Hold or Sell Recommendation

INFY
 Stock
  

USD 18.49  1.09  5.57%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Infosys Ltd ADR is 'Strong Buy'. Macroaxis provides Infosys buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Infosys positions. The advice algorithm takes into account all of Infosys' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Infosys' buy-and-hold perspective. Please see Infosys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Infosys and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Infosys Ltd ADR.

Execute Infosys Buy or Sell Advice

The Infosys recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Infosys Ltd ADR. Macroaxis does not own or have any residual interests in Infosys Ltd ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Infosys' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell InfosysBuy Infosys
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Infosys Ltd ADR has a Risk Adjusted Performance of 0.1052, Jensen Alpha of 0.0615, Total Risk Alpha of 0.0462, Sortino Ratio of 0.0345 and Treynor Ratio of 0.1229
Our advice tool can cross-verify current analyst consensus on Infosys and to analyze the company potential to grow in the current economic cycle. To make sure Infosys Ltd ADR is not overpriced, please check out all Infosys fundamentals, including its book value per share, current asset, and the relationship between the net income and number of employees . Given that Infosys Ltd ADR has a price to book of 8.64 X, we strongly advise you to confirm Infosys Ltd ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Infosys Trading Alerts and Improvement Suggestions

On 14th of November 2022 Infosys paid $ 0.2013 per share dividend to its current shareholders

Infosys Returns Distribution Density

The distribution of Infosys' historical returns is an attempt to chart the uncertainty of Infosys' future price movements. The chart of the probability distribution of Infosys stock daily returns describes the distribution of returns around its average expected value. We use Infosys Ltd ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Infosys returns is essential to provide solid investment advice for Infosys.
Mean Return0.12Value At Risk-2.42
Potential Upside3.25Standard Deviation1.78
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Infosys historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Infosys Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Infosys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Infosys Ltd ADR backward and forwards among themselves. Infosys' institutional investor refers to the entity that pools money to purchase Infosys' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zurcher Kantonalbank Zurich CantonalbankCommon Shares147.7 K2.5 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares151.7 K2.8 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares182.4 K4.5 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares196.8 KM
Zurcher Kantonalbank Zurich CantonalbankCommon Shares264.2 K5.9 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares287.4 K6.1 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares433.3 K8.1 M
Note, although Infosys' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Infosys Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(310 M)(349 M)(465 M)(285 M)(290 M)(312.89 M)
Depreciation Amortization and Accretion289 M287 M407 M441 M466 M412.05 M
Net Cash Flow or Change in Cash and Cash Equivalents(458 M)(36 M)(144 M)812 M(985 M)(1.01 B)
Net Cash Flow Business Acquisitions and Disposals(9 M)(147 M)(253 M)(186 M)(64 M)(69.05 M)
Payment of Dividends and Other Cash Distributions(1.16 B)(1.96 B)(1.36 B)(1.23 B)(1.7 B)(1.84 B)
Net Cash Flow from Financing(3.2 B)(2.07 B)(2.51 B)(1.32 B)(3.33 B)(3.41 B)
Net Cash Flow from Investing482 M(225 M)(242 M)(1.13 B)(1 B)(1.08 B)
Net Cash Flow Investment Acquisitions and Disposals801 M258 M471 M(669 M)(657 M)(674.29 M)
Net Cash Flow from Operations3.32 B3.24 B3.25 B4.12 B4.37 B4.1 B
Effect of Exchange Rate Changes on Cash18 M(184 M)(220 M)103 M(90 M)(97.11 M)
Share Based Compensation13 M29 M34 M45 M56 M45.6 M

Infosys Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Infosys or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Infosys' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Infosys stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.06
β
Beta against NYSE Composite0.93
σ
Overall volatility
1.77
Ir
Information ratio 0.0322

Infosys Volatility Alert

Infosys Ltd ADR has relatively low volatility with skewness of 0.52 and kurtosis of 0.46. However, we advise all investors to independently investigate Infosys Ltd ADR to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Infosys' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Infosys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Infosys Fundamentals Vs Peers

Comparing Infosys' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Infosys' direct or indirect competition across all of the common fundamentals between Infosys and the related equities. This way, we can detect undervalued stocks with similar characteristics as Infosys or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Infosys' fundamental indicators could also be used in its relative valuation, which is a method of valuing Infosys by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Infosys to competition
FundamentalsInfosysPeer Average
Return On Equity0.31 %(0.31) %
Return On Asset0.16 %(0.14) %
Profit Margin0.17 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation82.33 B16.62 B
Shares Outstanding4.21 B571.82 M
Shares Owned by Institutions14.10 %39.21 %
Number of Shares Shorted37.02 M4.71 M
Price to Earning28.16 X28.72 X
Price to Book8.64 X9.51 X
Price to Sales4.72 X11.42 X
Revenue16.31 B9.43 B
Gross Profit5.21 B27.38 B
EBITDA4.52 B3.9 B
Net Income2.96 B570.98 M
Cash and Equivalents3.28 B2.7 B
Cash per Share0.78 X5.01 X
Total Debt802 M5.32 B
Debt to Equity0.08 %48.70 %
Current Ratio2.01 X2.16 X
Book Value Per Share2.34 X1.93 K
Cash Flow from Operations3.35 B971.22 M
Short Ratio4.78 X4.00 X
Earnings Per Share0.70 X3.12 X
Price to Earnings To Growth1.75 X4.89 X
Target Price20.59
Number of Employees345.22 K18.84 K
Beta0.66-0.15
Market Capitalization82.79 B19.03 B
Total Asset15.55 B29.47 B
Retained Earnings11.07 B9.33 B
Working Capital5.8 B1.48 B
Current Asset7.8 B9.34 B

Infosys Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Infosys . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Infosys Buy or Sell Advice

When is the right time to buy or sell Infosys Ltd ADR? Buying financial instruments such as Infosys Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets7.21 B8.31 B8.87 B9.03 B
Total Assets12.26 B14.82 B15.55 B14.9 B

Use Investing Ideas to Build Portfolios

In addition to having Infosys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Apparel Thematic Idea Now

Apparel
Apparel Theme
Companies manufacturing textile accessories and apparel products. The Apparel theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Apparel Theme or any other thematic opportunities.
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Please see Infosys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Infosys Ltd ADR information on this page should be used as a complementary analysis to other Infosys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Infosys Ltd ADR price analysis, check to measure Infosys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Infosys is operating at the current time. Most of Infosys' value examination focuses on studying past and present price action to predict the probability of Infosys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Infosys' price. Additionally, you may evaluate how the addition of Infosys to your portfolios can decrease your overall portfolio volatility.
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Is Infosys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Infosys. If investors know Infosys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Infosys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Infosys Ltd ADR is measured differently than its book value, which is the value of Infosys that is recorded on the company's balance sheet. Investors also form their own opinion of Infosys' value that differs from its market value or its book value, called intrinsic value, which is Infosys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Infosys' market value can be influenced by many factors that don't directly affect Infosys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Infosys' value and its price as these two are different measures arrived at by different means. Investors typically determine Infosys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Infosys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.