NYSE:G is an undervalued gem with solid fundamentals.

Last update: Jan 2, 2024

Take a closer look at GENPACT LTD (NYSE:G), a remarkable value stock uncovered by our stock screener. NYSE:G excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

What does the Valuation looks like for NYSE:G

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:G was assigned a score of 7 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.08. G is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.95, the valuation of G can be described as very reasonable.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.99. G is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than 73.81% of the companies in the same industry.
G's Price/Free Cash Flow ratio is rather cheap when compared to the industry. G is cheaper than 84.52% of the companies in the same industry.
G has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for 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:

Looking at the Return On Assets, with a value of 9.34%, G is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
G has a Return On Equity of 21.38%. This is amongst the best in the industry. G outperforms 90.48% of its industry peers.
G's Return On Invested Capital of 12.50% is amongst the best of the industry. G outperforms 82.14% of its industry peers.
The 3 year average ROIC (10.49%) for G is below the current ROIC(12.50%), indicating increased profibility in the last year.
The Profit Margin of G (9.69%) is better than 75.00% of its industry peers.
With a decent Operating Margin value of 13.60%, G is doing good in the industry, outperforming 75.00% of the companies in the same industry.

Health Analysis for NYSE:G

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:G, the assigned 7 reflects its health status:

G has an Altman-Z score of 3.36. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, G is in the better half of the industry, outperforming 63.10% 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.
Looking at the Debt to FCF ratio, with a value of 2.82, G is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
Looking at the Current ratio, with a value of 1.91, G is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
With a decent Quick ratio value of 1.91, G is doing good in the industry, outperforming 60.71% of the companies in the same industry.

How We Gauge Growth for NYSE:G

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:G, the assigned 5 reflects its growth potential:

The Earnings Per Share has grown by an nice 10.42% over the past year.
G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.03% yearly.
Measured over the past years, G shows a quite strong growth in Revenue. The Revenue has been growing by 9.82% on average per year.
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.39% 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

Disclaimer

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.