Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Gen Digital: Rising Demand for Identity Protection Drives Growth – Will Product Innovation Keep the Momentum?
We maintain a Hold rating on Gen Digital (GEN) as the company balances strong operational execution with competitive pressures and macroeconomic challenges. In Q2 FY25, Gen reported 3% YoY revenue growth to $974 million, supported by a 5% rise in Cyber Safety bookings in constant currency—a post-Avast acquisition high. Gen added 400,000 direct paying customers, reaching a record 39.7 million, with stable ARPU at $7.26 and a retention rate of 78%, reflecting successful customer acquisition and upselling into high-value products like Norton 360 with LifeLock. The company’s focus on AI-driven innovations, including the Genie anti-scam feature, positions it for enhanced engagement and ARPU growth. Profitability remains strong, with a 58.2% operating margin and 16% YoY EPS growth to $0.54. Management reaffirmed FY25 guidance, projecting 3-4% Cyber Safety revenue growth and EPS of $2.18-$2.23. Tailwinds include rising demand for identity protection, scalable partnerships, and disciplined cost management. However, competition, rising customer acquisition costs, and macro pressures could weigh on growth and margins. While Gen's valuation appears balanced, future performance hinges on its ability to execute its product roadmap and international growth strategy. Can Gen’s product innovation sustain momentum amid intensifying market competition?
