GENGen Digital Inc.
Services-Prepackaged Software
- Revenue
- $5.0B
- 27% YoY
- Operating margin
- 42.4%
- 3.6% YoY
- EBITDA
- $2.6B
- 29% YoY
- Market cap
- $17.3B
- Employees
- 3,900
- $1M revenue each
- Net debt / EBITDA
- 2.7×
- $7.1B net debt
- AI in 10-K
- 16.8
- mentions per 10K words
Takeover score 5 of 13
Fixable underperformance 4 of 7
- TSR below peersYes4 of 5 years3+ of last 5 years
- High CEO pay despite TSRYes$23M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo159% of net incomeCash flow under 80% of net income
- Dilutive SBCNo5% of revenueOver 10% of revenue
- Payouts exceed cash flowNo61% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyYes70% of assetsOver 40% of assets
- Shareholder dissentYes41% lowest supportAny vote under 80% support
Buyer economics 0 of 4
- Low revenue per employeeNo$1M · 83rd pctBottom quartile of its SIC industry
- Quiet on AINo16.8 per 10K words · 97th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo2.7× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedNo$17.3B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$22M netNet sales over $10M in 12 months
Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $2.8B | $3.3B | $3.8B | $3.9B | $5.0B | 27% |
| Operating income | $1.0B | $1.2B | $1.1B | $1.6B | $2.1B | 32% |
| Net income | $836M | $1.3B | $607M | $643M | $973M | 51% |
| Operating cash flow | $974M | $757M | $2.1B | $1.2B | $1.5B | 27% |
| Capex | $6M | $6M | $20M | $15M | $22M | 47% |
| Stock-based comp | $70M | $134M | $138M | $133M | $237M | 78% |
| Buybacks | $0 | $904M | $441M | $272M | $634M | 133% |
| Dividends | $303M | $314M | $323M | $313M | $312M | 0.3% |
Deal filings
| Filed | Form | Acquirer | Price | Premium |
|---|---|---|---|---|
| Oct 4, 2021 | DEFM14A | Nitro Bidco Limited | $7.61 | 10% |
| Sep 17, 2021 | PREM14A | NortonLifeLock Inc. | $7.61 | 10% |
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Jul 28, 2023 | Baudis Pavel | SC 13D | 7.8% | Passive |
| Aug 5, 2020 | Starboard Value LP | SC 13D/A | — | Passive |
| Jun 9, 2020 | Starboard Value LP | SC 13D/A | 5.6% | Passive |
| Aug 15, 2019 | Starboard Value LP | SC 13D/A | 7.1% | Passive |
| Feb 7, 2019 | Starboard Value LP | SC 13D/A | 5.6% | Passive |
Insider trading
- Open-market buys, 12 mo
- $217K · 2
- Open-market sells, 12 mo
- $22M · 10
- Net
- −$22M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2026 | $84M | $34M | 98 | 230 |
| FY2025 | $23M | $34M | 134 | 175 |
| FY2024 | $15M | $29M | 112 | 165 |
| FY2023 | $25M | $6M | 83 | 113 |
| FY2022 | $14M | $21M | 128 | 118 |