Gen Digital Inc. (GEN)
UndervaluedFundamental
81
Price
$22.02
Market Cap
$13.81B
Part 1 · What the company is worth
Overview
Gen Digital sells consumer-facing cybersecurity and identity-protection software under well-known brands — Norton, Avast, LifeLock, AVG, Avira and CCleaner — plus, since 2025, financial-wellness and lending products through its MoneyLion acquisition. Its core products protect a device or an identity: antivirus, VPN, dark-web monitoring and identity-theft insurance, sold mainly as subscriptions that renew automatically each year.
How it makes money
Most revenue is the Cyber Safety Platform: subscription fees for security, privacy and identity-protection software, billed annually or monthly and renewed automatically unless a customer cancels. Trust-Based Solutions, built mainly around the 2025 MoneyLion acquisition, adds lending, credit and financial-wellness products aimed at the same subscriber base. Because software costs little to serve an additional customer, high subscriber retention converts almost directly into profit.
Revenue by segment
Subscription antivirus, VPN, identity-theft protection and related security software sold under the Norton, Avast, LifeLock, AVG and Avira brands.
Lending, credit and financial-wellness products, built mainly through the 2025 acquisition of MoneyLion and sold to the same consumer base.
Competitive moat
Brand · NarrowNorton and Avast are among the most recognised names in consumer security, built over decades, and that recognition plus auto-renewing subscriptions gives Gen a retention edge that a newer competitor has to fight for. But operating systems increasingly bundle native security features for free, and switching to a competing or free tool costs a consumer little, so the advantage is narrow.
What drives demand
Moderately cyclicalDemand is driven less by economic cycles than by the growing volume of online fraud, identity theft and AI-enabled scams, which keeps consumers renewing protection subscriptions. Growth still slows when discretionary consumer spending tightens, since a security subscription is one of the easier line items for a household to cancel, but auto-renewal defaults make revenue comparatively sticky.
Key risks
- Native operating-system security — Major operating system vendors increasingly bundle security features for free, eroding the case for a paid third-party subscription among price-sensitive consumers.
- Cybersecurity and AI-threat evolution — The company must continuously counter cybersecurity threats and AI-enabled attacks; a service disruption or failure to keep pace with new threats would damage the trust the business depends on.
- Subscriber renewal dependence — Revenue and results depend heavily on retaining existing subscribers and expanding what they buy; a rise in cancellations or weaker renewal rates directly reduces recurring revenue.
- Integration of the fintech expansion — Extending into lending and financial-wellness products through the MoneyLion acquisition takes the company into new regulatory and credit-risk territory outside its historical security business.
Customer concentration
Gen Digital sells to tens of millions of individual consumer subscribers, with over 40 million direct customers cited in its filings, and has no material reliance on any single customer.
The case for
Buyers argue that Gen's trusted, decades-old brands and large subscriber base give it a retention advantage in security, and that pairing that base with MoneyLion's financial-wellness products opens a second growth avenue beyond a maturing core antivirus market.
The case against
Sellers worry that free, built-in security from operating systems keeps eroding the case for a paid subscription, and that expanding into consumer lending through MoneyLion adds credit and regulatory risks the company has little history managing.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
McAfee sells the same consumer antivirus, VPN and identity-protection subscriptions as Norton and Avast, to the same households and through the same PC-maker pre-install deals.
Bitdefender competes for the same retail and online buyers of multi-device security suites, and is named by Gen Digital among its principal competitors in Security.
Aura sells an all-in-one identity theft, credit monitoring and online privacy subscription aimed directly at the US consumer that LifeLock serves.
Trend Micro's consumer line, Trend Micro Maximum Security, competes with Norton for home device protection, especially in Japan and the rest of Asia-Pacific.
ESET sells consumer antivirus and privacy subscriptions through the same retail and reseller channels, with a particularly strong position in European households.
Kaspersky offers directly comparable consumer security and VPN plans and competes with Norton and Avast across Europe, Latin America and emerging markets, though it no longer sells in the United States.
Balance Sheet & Liquidity
Revenue
$5.08B
Trailing 12 months (through 7/3/2026)
Net Income
$1.05B
Trailing 12 months (through 7/3/2026)
Free Cash Flow
$1.52B
Total Equity
$2.61B
Total Liabilities
$12.98B
Current Ratio
0.47
Interest Coverage
-
Debt/EBITDA
3.13
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$35.61
Current Price
$22.02
Margin of Safety
+38.2%
Fair Value Range
$23.15 - $48.07
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
12.88
ROE
37.3%
P/B Ratio
4.96
P/FCF
8.51
Gross Margin
78.0%
ROIC
12.9%
Profitability Radar
Value Creation (Economic Moat)
ROIC
12.9%
WACC
7.4%
ROIC − WACC
+5.5 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 7.06%
- ROIC 12.9%
- Gross Margin 78.0%
- P/FCF 8.51
- Operating Margin 41.7%
- Positive Free Cash Flow
- CapEx intensity
- Debt/EBITDA
- Return on Tangible Assets
- DCF valuation (Undervalued)
- ROE 41.9%
- Revenue Growth 5Y 14.4%
- Analyst Consensus 56% Buy
- PEG Ratio 1.20
- Earnings Quality (OCF/NI) 1.49
- Share Dilution -0.7%
- Net Margin Trend 20.7% vs 14.1%
- Piotroski F-Score 7/9
Failed (7)
- Price CAGR 0.94%
- P/B Ratio 4.96
- Debt/Equity ratio
- Current Ratio
- Low reliance on intangibles
- Price below Graham Number
- Earnings Surprise avg 1.2%
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Vincent Pilette | CEO, President & Chairman | 53 |
| Ms. Natalie Marie Derse | Chief Financial Officer | 47 |
| Mr. Bryan Seuk Ko J.D. | COO, Chief Legal Officer & Corporate Secretary | 54 |
| Mr. Benjamin Lu C.F.A. | Head of Investor relations | 48 |
| Spring Harris | Head of Global Corporate Communications & PR | - |
| Ms. Kara Jordan | Chief Human Resources Officer | - |
| Mr. Travis Witteveen | Head of Products & Portfolios | 55 |
Audit Risk
8
Board Risk
8
Compensation Risk
10
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-05-21
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-07
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-28
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for GEN, sourced from Markets Gazette.