Gen Digital Inc. (GEN)
Quantitative Summary
DeterministicAt 16.4x earnings — a 75% discount to the sector average of 65.0x — GEN is in the lower valuation range. Strong operational fundamentals (Piotroski 8/9) with Altman Z of 1.0. DCF fair value of $77 implies 308% upside from current prices based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedGen Digital Inc. presents a fundamental profile characterized by high profitability margins offset by low asset efficiency and elevated leverage, resulting in an ROE of 28.3% driven primarily by a significant equity multiplier of 6.83x rather than operational turnover or margin expansion. While the Piotroski F-Score of 8/9 signals strong fundamental stability and the Beneish M-Score of -2.80 suggests low earnings manipulation risk, the Altman Z-Score of 1.1 indicates elevated financial distress probabilities that warrant caution regarding solvency. The company generates a modest ROIC-WACC spread of +1.3%, reflecting capital returns that narrowly exceed its cost of equity despite robust gross margins exceeding 80%.
Valuation metrics reveal a pronounced discount relative to the technology sector average P/E of 58.2x, with Gen Digital trading at 18.4x; however, this compression contrasts sharply with a DCF fair value estimate implying substantial upside potential based on current assumptions. The market appears pricing in extremely conservative long-term free cash flow growth expectations, as evidenced by the implied ten-year FCF growth rate of just 0.9%. This divergence between historical profitability and forward-looking valuation models creates a complex risk-reward dynamic where low multiple exposure coexists with aggressive downside protection metrics that may not fully capture operational headwinds.
Risk factors are highlighted by negative momentum signals, including an annualized Fama-French alpha of -40.37% which underperforms the style benchmark, and recent insider activity showing $18,754 in net selling over the last 90 days. Furthermore, while the stock exhibits a value tilt with a positive HML factor loading of 0.132, it simultaneously displays weak profitability characteristics relative to its peers according to the RMW factor score of -0.166. These data points collectively suggest that despite attractive valuation multiples and low manipulation risk, the combination of financial distress indicators, negative alpha performance, and insider outflows creates a challenging environment for capital preservation.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 4% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 6.6% | 8.6% | 10.6% |
|---|---|---|---|
| 2% | $102 | $65 | $46 |
| 3% | $130 | $77 | $52 |
| 4% | $181 | $94 | $60 |
Center = base case. Green = >10% upside, Red = >10% downside vs $27.53.
Pre-computed DCF: WACC=8.6%, terminal growth 3%. Fair value $77 (+308.1%). Not investment advice.
Valuation Context
Currently trading 12% below its 5-year average P/E of 21.0x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedGen Digital Inc. is currently trading at $25.00 within the technology sector, presenting a snapshot of its market positioning without explicit directional guidance regarding future price movements. To assess momentum and trend strength for this asset, analysts typically examine whether the current price sits above or below key moving averages to determine if upward or downward pressure dominates recent activity. Additionally, the Relative Strength Index serves as a critical tool for evaluating short-term velocity; readings near overbought levels might indicate potential exhaustion in an uptrend, while values approaching oversold territory could signal a temporary lack of selling momentum. Without specific numerical data on moving average crossovers or precise RSI percentages, any definitive conclusion about the immediate trajectory remains speculative based solely on the stated price point. The interplay between the current valuation and historical averages will ultimately reveal whether the stock is in an accumulation phase characterized by sustained higher lows or a distribution pattern marked by declining support levels. Traders often look for confirmation that momentum aligns with the broader trend before interpreting such signals as actionable, yet this alignment cannot be confirmed without additional technical metrics beyond the single price figure provided. Consequently, while the $25.00 level establishes a baseline reference point, determining whether short-term forces are bullish or bearish requires further analysis of volume profiles and moving average relationships that are not currently visible in this limited dataset.
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-05-18 | $0.1250 | 0.0% |
| 2026-02-13 | $0.1250 | 0.0% |
| 2025-11-17 | $0.1250 | 0.0% |
| 2025-08-18 | $0.1250 | 0.0% |
| 2025-05-19 | $0.1250 | 0.0% |
| 2025-02-14 | $0.1250 | 0.0% |
| 2024-11-18 | $0.1250 | 0.0% |
| 2024-08-19 | $0.1250 | 0.0% |
| 2024-05-17 | $0.1250 | 0.0% |
| 2024-02-15 | $0.1250 | 0.0% |
| 2023-11-17 | $0.1250 | 0.0% |
| 2023-08-18 | $0.1250 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like HACK or XSW, the fund manager is mechanically forced to buy or sell GEN shares regardless of Gen Digital Inc.'s individual fundamentals. We estimate $1.6B of passive capital is structurally linked to GEN through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Gen Digital Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Gen Digital Inc. (GEN) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Broadcom Inc (AVGO) as the most exposed collateral stock, sharing 2 ETFs with GEN. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 29 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
GEN Ownership Dynamics
Passive funds hold 1 in every 7 GEN shares, reducing daily market volatility.
Gen Digital Inc. (GEN) exerts measurable gravity on the passive index market, currently representing 4.4% of the Amplify Cybersecurity ETF (HACK) and 0.8% of the XSW (XSW). Across 33 tracked ETFs, approximately 87M shares (14.4% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest GEN Exposure
Float lock-up computed from 33 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
GEN Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Gen Digital Inc. over the past year sits near $26.52 (8% of 252-day volume). The current price of $27.53 trades 3.8% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
GEN Capital Efficiency
How efficiently does Gen Digital Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Gen Digital Inc. converts 60% of its EBITDA into free cash flow, a healthy conversion rate indicating efficient capital management — the business generates substantial cash after reinvestment. The positive ROIC-WACC spread of 1.5% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-07 | 23,054 | $19.56 | $450,936.24 |
| 2026-05-06 | 91,990 | $19.71 | $1.8M |
| 2026-05-04 | 2 | $19.37 | $38.74 |
| 2026-05-01 | 6 | $19.29 | $115.74 |
| 2026-04-28 | 27,876 | $19.02 | $530,201.52 |
| 2026-04-27 | 15,381 | $19.04 | $292,854.24 |
| 2026-04-23 | 586,670 | $19.99 | $11.7M |
| 2026-04-22 | 579,522 | $19.91 | $11.5M |
| 2026-04-16 | 138 | $19.67 | $2,714.46 |
| 2026-04-15 | 6 | $18.91 | $113.46 |
| 2026-04-06 | 6 | $18.89 | $113.34 |
| 2026-04-01 | 2,535 | $18.83 | $47,734.05 |
| 2026-03-27 | 285,268 | $18.97 | $5.4M |
| 2026-03-26 | 360,514 | $19.47 | $7.0M |
| 2026-03-25 | 17,303 | $19.77 | $342,080.31 |
| 2026-03-24 | 40 | $21.02 | $840.8 |
| 2026-03-17 | 745 | $20.61 | $15,354.45 |
| 2026-03-10 | 6,850 | $22.55 | $154,467.5 |
| 2026-03-06 | 981 | $22.61 | $22,180.41 |
| 2026-03-05 | 266,318 | $22.29 | $5.9M |
| 2026-03-02 | 295 | $22.57 | $6,658.15 |
| 2026-02-12 | 249,341 | $24.67 | $6.2M |
| 2026-01-23 | 34,106 | $25.22 | $860,153.32 |
| 2026-01-21 | 307 | $25.14 | $7,717.98 |
| 2026-01-12 | 764 | $26.96 | $20,597.44 |
| 2026-01-08 | 11 | $26.11 | $287.21 |
| 2025-12-29 | 617 | $27.77 | $17,134.09 |
| 2025-12-26 | 5,484 | $27.64 | $151,577.76 |
| 2025-12-22 | 314,647 | $27.61 | $8.7M |
| 2025-12-10 | 9,469 | $27.14 | $256,988.66 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| TENB | 0.574 | 0.673 | Moderate |
| ADBE | 0.557 | 0.627 | Moderate |
| TRMB | 0.554 | 0.507 | Moderate |
| CRM | 0.550 | 0.609 | Moderate |
| ACN | 0.550 | 0.636 | Moderate |
| DIS | 0.534 | 0.470 | Moderate |
| WDAY | 0.534 | 0.625 | Moderate |
| PAYX | 0.525 | 0.643 | Moderate |
| PAYC | 0.520 | 0.581 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare GEN to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.