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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 2.07
IT's Cash to Debt is ranked higher than
53% of the 1618 Companies
in the Global Information Technology Services industry.

( Industry Median: 25.64 vs. IT: 2.07 )
IT' s 10-Year Cash to Debt Range
Min: 0.12   Max: No Debt
Current: 2.07

Equity to Asset 0.20
IT's Equity to Asset is ranked lower than
62% of the 1589 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. IT: 0.20 )
IT' s 10-Year Equity to Asset Range
Min: -0.04   Max: 0.5
Current: 0.2

-0.04
0.5
Interest Coverage 26.52
IT's Interest Coverage is ranked higher than
51% of the 1077 Companies
in the Global Information Technology Services industry.

( Industry Median: 403.68 vs. IT: 26.52 )
IT' s 10-Year Interest Coverage Range
Min: 1.9   Max: 9999.99
Current: 26.52

1.9
9999.99
F-Score: 6
Z-Score: 4.85
M-Score: -2.83
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 15.44
IT's Operating margin (%) is ranked higher than
88% of the 1604 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.48 vs. IT: 15.44 )
IT' s 10-Year Operating margin (%) Range
Min: 2.56   Max: 23.5
Current: 15.44

2.56
23.5
Net-margin (%) 10.25
IT's Net-margin (%) is ranked higher than
84% of the 1602 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.67 vs. IT: 10.25 )
IT' s 10-Year Net-margin (%) Range
Min: -6.88   Max: 14.3
Current: 10.25

-6.88
14.3
ROE (%) 50.59
IT's ROE (%) is ranked higher than
99% of the 1564 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.77 vs. IT: 50.59 )
IT' s 10-Year ROE (%) Range
Min: -1.66   Max: 420.35
Current: 50.59

-1.66
420.35
ROA (%) 10.25
IT's ROA (%) is ranked higher than
91% of the 1616 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.63 vs. IT: 10.25 )
IT' s 10-Year ROA (%) Range
Min: -7.89   Max: 11.33
Current: 10.25

-7.89
11.33
ROC (Joel Greenblatt) (%) 300.23
IT's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 1600 Companies
in the Global Information Technology Services industry.

( Industry Median: 30.96 vs. IT: 300.23 )
IT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 40.93   Max: 314.19
Current: 300.23

40.93
314.19
Revenue Growth (%) 13.40
IT's Revenue Growth (%) is ranked higher than
83% of the 1208 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.30 vs. IT: 13.40 )
IT' s 10-Year Revenue Growth (%) Range
Min: -14.2   Max: 37.7
Current: 13.4

-14.2
37.7
EBITDA Growth (%) 20.60
IT's EBITDA Growth (%) is ranked higher than
83% of the 951 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.70 vs. IT: 20.60 )
IT' s 10-Year EBITDA Growth (%) Range
Min: -23.2   Max: 57.9
Current: 20.6

-23.2
57.9
EPS Growth (%) 26.20
IT's EPS Growth (%) is ranked higher than
84% of the 892 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.80 vs. IT: 26.20 )
IT' s 10-Year EPS Growth (%) Range
Min: -23.9   Max: 71
Current: 26.2

-23.9
71
» IT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

IT Guru Trades in Q1 2013

Jim Simons 1,074,300 sh (+11.96%)
Ron Baron 8,524,386 sh (+0.11%)
RS Investment Management Sold Out
Pioneer Investments 255,900 sh (-1.84%)
Steven Cohen 10,873 sh (-26.67%)
Chuck Royce 1,980,820 sh (-42.47%)
» More
Q2 2013

IT Guru Trades in Q2 2013

Steven Cohen 11,766 sh (+8.21%)
Ron Baron 8,421,884 sh (-1.2%)
Jim Simons 1,013,500 sh (-5.66%)
Chuck Royce 1,731,800 sh (-12.57%)
Pioneer Investments 153,600 sh (-39.98%)
» More
Q3 2013

IT Guru Trades in Q3 2013

Jim Simons 1,033,200 sh (+1.94%)
Ron Baron 8,497,572 sh (+0.9%)
Chuck Royce 1,300,700 sh (-24.89%)
Pioneer Investments 88,262 sh (-42.54%)
Steven Cohen 3,591 sh (-69.48%)
» More
Q4 2013

IT Guru Trades in Q4 2013

Steven Cohen 87,397 sh (+2333.78%)
Jim Simons 1,171,400 sh (+13.38%)
Ron Baron 9,175,270 sh (+7.98%)
Steven Cohen 200,000 sh (unchged)
Pioneer Investments 84,364 sh (-4.42%)
Chuck Royce 1,000,700 sh (-23.06%)
» More
» Details

Insider Trades

Latest Guru Trades with IT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 Add 7.98%0.2%$57.68 - $71.22 $ 67.577%9175270
George Soros 2011-06-30 Sold Out $36.12 - $43.01 $ 67.5772%0
George Soros 2011-03-31 New Buy0.01%$33.2 - $41.14 $ 67.5783%12300
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Gartner, Inc.

Baron Funds Comments on Gartner Inc. - Feb 20, 2014

Shares of Gartner, Inc. (IT), the leading independent provider of research and analysis on the Information Technology industry, rose on reported strength in its core research segment, where contract value grew 12% in the most recent quarter. We expect to see improving sales momentum through 2014 as Gartner expands its sales force, modestly raises prices, benefits from pent-up demand in the U.S. and U.K. federal sectors, and expands its research coverage to serve a new constituency - chief marketing officers. We anticipate the company will continue to return capital via share repurchases, and we believe there is a chance for an accelerated capital return if Gartner adds moderate leverage to its balance sheet.





From Baron Funds' fourth quarter letter 2013 to shareholders.



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Baron Funds Comments on Gartner Inc. - Apr 25, 2013

Gartner, Inc. (IT) is the leading independent provider of research and analysis on the information technology (IT) industry, generating most of its revenues from annual subscriptions to its analysts' research commentary. Its shares performed well, as Gartner delivered solid financial results among uneven global end markets. The company generated record new bookings in its research business, with the contract value of its subscription revenues increasing 14%. We expect the company to maintain its sales momentum through 2013 and beyond as it grows its sales force, raises prices, and expands its efforts to services for Chief Marketing Officers, who are rapidly becoming an important constituent in setting and executing corporate IT strategy.

From Baron Funds' first quarter 2013 letter.


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Baron Funds Comments on Gartner Inc. - Dec 06, 2012

Gartner, Inc. (IT) is the leading independent provider of research and analysis on the Information Technology (IT) sector. Its shares gained, boosted by solid financial results despite concerns about slowing growth in the IT spending environment. In particular, Gartner continued to generate record bookings in its core research business, and the company's research contract value (an important measure of its future research revenue) grew 14%.

From Baron Funds’ third quarter commentary.


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Baron Insight on Gartner Inc. (IT) - Jun 05, 2012

Neal Rosenberg, vice president and research analyst at Baron Funds, discusses Gartner Inc. (IT) in his first-quarter 2012 Baron Insight:

One company that we believe epitomizes what we look for in an information services investment is Gartner. Gartner is the leading independent provider of research and analysis on the information technology industry. IT is becoming increasingly strategic to businesses, as companies of all sizes look to deal with the challenges and opportunities presented by growth of social technology, mobile handsets, cloud computing, and a tidal wave of "big data".

Gartner's research business employs a team of 810 analysts who track, evaluate and quantify technological developments. Analysts come to Gartner after a minimum of 10 years of experience in their field, so they have deep industry expertise, real world experience, and a wide range of industry contacts.

We believe Gartner has a vast untapped market opportunity. With 2011 research revenue of $1 billion, the company is serving just over 2% of its addressable market. The company has just 1,200 salespeople, and currently covers just 31% of the 108,000 companies that it will ultimately be able to target. Of the potential clients that Gartner's sales force actively covers, less than 25% are currently clients. The Gartner brand is highly valued in the IT community, and quickly becomes a critical part of a user's daily workflow. Every year, Gartner's clients view 5.5 million research documents, conduct 290,000 calls or meetings with analysts, tap into a terabyte of continuously updated market data, and have 2,300 contracts reviewed. This leads to close to 100% of clients renewing their contracts with Gartner each and every year. Given its high value and low churn, Gartner is also able to raise prices, generally at a 3 to 6% annual rate.

Gartner also demonstrates the operating leverage inherent in information services models. Margins are currently running around 19%, up from 12% just 7 years ago, and we still see a long runway for expansion. Finally, Gartner has generated a tremendous amount of cash. In 2011 alone, the company generated over $200 million of free cash flow, which it primarily uses to repurchase stock.

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Top Ranked Articles about Gartner, Inc.

Baron Funds Comments on Gartner Inc.
Shares of Gartner, Inc. (IT), the leading independent provider of research and analysis on the Information Technology industry, rose on reported strength in its core research segment, where contract value grew 12% in the most recent quarter. We expect to see improving sales momentum through 2014 as Gartner expands its sales force, modestly raises prices, benefits from pent-up demand in the U.S. and U.K. federal sectors, and expands its research coverage to serve a new constituency - chief marketing officers. We anticipate the company will continue to return capital via share repurchases, and we believe there is a chance for an accelerated capital return if Gartner adds moderate leverage to its balance sheet. Read more...
Baron Funds Comments on Gartner Inc.
Gartner, Inc. (IT) is the leading independent provider of research and analysis on the information technology (IT) industry, generating most of its revenues from annual subscriptions to its analysts' research commentary. Its shares performed well, as Gartner delivered solid financial results among uneven global end markets. The company generated record new bookings in its research business, with the contract value of its subscription revenues increasing 14%. We expect the company to maintain its sales momentum through 2013 and beyond as it grows its sales force, raises prices, and expands its efforts to services for Chief Marketing Officers, who are rapidly becoming an important constituent in setting and executing corporate IT strategy. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 35.30
IT's P/E(ttm) is ranked lower than
51% of the 1119 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.20 vs. IT: 35.30 )
IT' s 10-Year P/E(ttm) Range
Min: 8.54   Max: 99999999.99
Current: 35.3

8.54
99999999.99
P/B 17.20
IT's P/B is ranked lower than
79% of the 1504 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.45 vs. IT: 17.20 )
IT' s 10-Year P/B Range
Min: 2.93   Max: 307
Current: 17.2

2.93
307
P/S 3.60
IT's P/S is ranked lower than
65% of the 1650 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. IT: 3.60 )
IT' s 10-Year P/S Range
Min: 0.69   Max: 3.87
Current: 3.6

0.69
3.87
PFCF 22.90
IT's PFCF is ranked higher than
55% of the 874 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.50 vs. IT: 22.90 )
IT' s 10-Year PFCF Range
Min: 5.35   Max: 288.4
Current: 22.9

5.35
288.4
EV-to-EBIT 21.30
IT's EV-to-EBIT is ranked higher than
52% of the 1278 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.39 vs. IT: 21.30 )
IT' s 10-Year EV-to-EBIT Range
Min: 6.5   Max: 159.7
Current: 21.3

6.5
159.7
PEG 1.70
IT's PEG is ranked higher than
64% of the 601 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. IT: 1.70 )
IT' s 10-Year PEG Range
Min: 0.18   Max: 15.62
Current: 1.7

0.18
15.62
Shiller P/E 49.20
IT's Shiller P/E is ranked lower than
53% of the 616 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.33 vs. IT: 49.20 )
IT' s 10-Year Shiller P/E Range
Min: 17.19   Max: 743.33
Current: 49.2

17.19
743.33

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 2.00
IT's Price/DCF (Projected) is ranked higher than
53% of the 753 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.50 vs. IT: 2.00 )
IT' s 10-Year Price/DCF (Projected) Range
Min: 1.13   Max: 3.54
Current: 2

1.13
3.54
Price/Median PS Value 1.90
IT's Price/Median PS Value is ranked lower than
71% of the 1516 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. IT: 1.90 )
IT' s 10-Year Price/Median PS Value Range
Min: 0.42   Max: 4.22
Current: 1.9

0.42
4.22
Price/Peter Lynch Fair Value 2.30
IT's Price/Peter Lynch Fair Value is ranked lower than
52% of the 365 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.50 vs. IT: 2.30 )
IT' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.73   Max: 4.77
Current: 2.3

0.73
4.77
Earnings Yield (Greenblatt) 4.70
IT's Earnings Yield (Greenblatt) is ranked higher than
56% of the 1324 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.40 vs. IT: 4.70 )
IT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 15.3
Current: 4.7

0.6
15.3
Forward Rate of Return (Yacktman) 18.03
IT's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 1007 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.32 vs. IT: 18.03 )
IT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -19.5   Max: 56.6
Current: 18.03

-19.5
56.6

Business Description

Industry: Application Software » Information Technology Services
Compare:ACN, INFY, CTSH, CIOXY, AMADY » details
Traded in other countries:GGRA.Germany
Gartner, Inc. was founded in 1979. It is an information technology research and advisory company. It delivers the technology-related insight necessary for its clients to make the right decisions. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals and technology investors, the Company is the valuable partner to clients in over 13,300 distinct organizations. It works with every client to research, analyze and interpret the business of IT within the context of their individual role. The foundation for all Gartner products and services is its independent research on IT and supply chain issues. The findings from this research are delivered through the Company's three business segments: Research, Consulting and Events. Research provides objective insight on critical and timely technology and supply chain initiatives for CIOs, other IT professionals, supply chain leaders, technology companies and the investment community through reports, briefings, proprietary tools, access to the Company's analysts, peer networking services, and membership programs that enable its clients to make better decisions about their IT and supply chain investments. Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency, and quality. Events provide IT, supply chain, and business professionals the opportunity to attend various symposia, conferences and exhibitions to learn, contribute and network with their peers. The Company's diversified business model provides multiple entry points and synergies that facilitate increased client spending on its research, consulting services and events. A critical part of the Company's long-term strategy is to increase business volume with its valuable clients, identifying relationships with the greatest sales potential and expanding those relationships by offering strategically relevant research and advice. The Company leases 29 domestic and 49 international offices and it has a significant presence in Stamford, Connecticut, Ft. Myers, Florida and Egham, the United Kingdom. The Company does not currently own any properties. The Company faces competition from a number of independent providers of information products and services. It competes indirectly against consulting firms and other information providers, including electronic and print media companies.

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