NYSE:G is probably undervalued for the fundamentals it is displaying.

Last update: Nov 21, 2023

Our stock screener has spotted GENPACT LTD (NYSE:G) as an undervalued stock with solid fundamentals. NYSE:G shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Analysis for NYSE:G

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:G scores a 7 out of 10:

G is valuated reasonably with a Price/Earnings ratio of 11.95.
G's Price/Earnings ratio is rather cheap when compared to the industry. G is cheaper than 82.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.44, G is valued rather cheaply.
The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of G.
Compared to the rest of the industry, the Price/Forward Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 87.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.53, G is valued a bit cheaper.
72.41% of the companies in the same industry are more expensive than G, based on the Enterprise Value to EBITDA ratio.
G's Price/Free Cash Flow ratio is rather cheap when compared to the industry. G is cheaper than 86.21% of the companies in the same industry.
The decent profitability rating of G may justify a higher PE ratio.

Profitability Assessment of NYSE:G

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:G was assigned a score of 6 for profitability:

G has a Return On Assets of 9.34%. This is in the better half of the industry: G outperforms 79.31% of its industry peers.
Looking at the Return On Equity, with a value of 21.38%, G belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.51%, G belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
The 3 year average ROIC (10.44%) for G is below the current ROIC(12.51%), indicating increased profibility in the last year.
G has a better Profit Margin (9.69%) than 73.56% of its industry peers.
With a decent Operating Margin value of 13.60%, G is doing good in the industry, outperforming 73.56% of the companies in the same industry.

Health Insights: NYSE:G

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:G scores a 6 out of 10:

An Altman-Z score of 3.34 indicates that G is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.34, G is in the better half of the industry, outperforming 63.22% of the companies in the same industry.
The Debt to FCF ratio of G is 2.82, which is a good value as it means it would take G, 2.82 years of fcf income to pay off all of its debts.
G has a Debt to FCF ratio of 2.82. This is in the better half of the industry: G outperforms 70.11% of its industry peers.

Assessing Growth for NYSE:G

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:G boasts a 6 out of 10:

The Earnings Per Share has grown by an nice 10.42% over the past year.
The Earnings Per Share has been growing by 11.03% on average over the past years. This is quite good.
The Revenue has been growing by 9.82% on average over the past years. This is quite good.
G is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.07% yearly.
Based on estimates for the next years, G will show a quite strong growth in Revenue. The Revenue will grow by 8.17% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of G

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.