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Gen Digital

GEN
74
Software - Infrastructure · Technology
Price
$28.93
+0.76 (+2.68%)
Market Cap
$17.32B
Exchange
NASDAQ
Winston Score
74
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jul 3, 2026
How the score breaks down
Quality
Exceptional
Growth
Exceptional
Cash Flow
Exceptional
Stability
Mixed
Valuation
Strong
Dividends
Weak

Share count rising — dilution

+4.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 591.0M (2022) → 619.0M (2026)

Winston Score History

The full picture

Gen Digital is a cybersecurity company that protects everyday people — not businesses — from online threats like viruses, hackers, and identity theft. Its most well-known brands include Norton, Avast, AVG, LifeLock, and CCleaner, which are used by hundreds of millions of consumers around the world. It is one of the largest consumer cybersecurity companies on the planet.

The company makes most of its money through subscriptions, where customers pay a recurring fee for antivirus software, VPN services, and identity theft protection. Gen Digital operates globally, with a large user base across North America, Europe, and Asia, and generates roughly $3.8 billion in annual revenue. Its main competitive advantage is its portfolio of trusted brand names and a massive installed user base, though the key risk is that free security tools built into operating systems — like those from Microsoft — could reduce the perceived need for paid consumer security products.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+27.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+269.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$409M/ year

Rising (+24% vs prior year)

8.2% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

9.8%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$418M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Gen Digital grew revenue 27% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
77.0%
Premium pricing power — 77.0% gross margin
Profit after running costs
Operating Margin
33.2%
Excellent — 33.2% operating margin
Return on the money invested
ROCE
19.8%
Strong — 19.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+20.2%
Fast-growing sales (+20.2% YoY)
Profit growth
EPS YoY
+79.4%
Earnings growing fast (+79.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
149%
Turns 149% of profit into real cash
Spare cash per sale
FCF Margin
30.5%
Converts sales into free cash efficiently (30.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
3.07
Heavy debt load (3.07)
Covers its interest
Interest Cover
7.40x
Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
16.6x
Fair value — P/E 16.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+6.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (16.6 → 10.0)

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Dividends

Dividend
Dividend Yield
1.72%
Small dividend — 1.72% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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