NYSE:G is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Mar 1, 2024

GENPACT LTD (NYSE:G) was identified as a decent value stock by our stock screener. NYSE:G scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Examination for NYSE:G

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:G boasts a 7 out of 10:

A Price/Earnings ratio of 11.41 indicates a reasonable valuation of G.
Based on the Price/Earnings ratio, G is valued cheaper than 86.90% of the companies in the same industry.
G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.09.
G is valuated reasonably with a Price/Forward Earnings ratio of 10.79.
88.10% of the companies in the same industry are more expensive than G, based on the Price/Forward Earnings ratio.
G is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.73, which is the current average of the S&P500 Index.
G's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. G is cheaper than 78.57% of the companies in the same industry.
83.33% of the companies in the same industry are more expensive than G, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of G may justify a higher PE ratio.

Exploring NYSE:G's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:G has achieved a 8:

G has a Return On Assets of 13.14%. This is amongst the best in the industry. G outperforms 90.48% of its industry peers.
G has a Return On Equity of 28.08%. This is amongst the best in the industry. G outperforms 91.67% of its industry peers.
G has a better Return On Invested Capital (13.61%) than 84.52% of its industry peers.
The 3 year average ROIC (11.97%) for G is below the current ROIC(13.61%), indicating increased profibility in the last year.
G has a better Profit Margin (14.10%) than 90.48% of its industry peers.
G's Profit Margin has improved in the last couple of years.
G's Operating Margin of 14.00% is fine compared to the rest of the industry. G outperforms 76.19% of its industry peers.
G's Operating Margin has improved in the last couple of years.

How We Gauge Health for NYSE:G

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:G has earned a 6 out of 10:

G has an Altman-Z score of 3.27. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
G has a debt to FCF ratio of 2.93. This is a good value and a sign of high solvency as G would need 2.93 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.93, G is doing good in the industry, outperforming 65.48% of the companies in the same industry.
G has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.

Unpacking NYSE:G's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:G has received a 4 out of 10:

The Earnings Per Share has grown by an nice 8.36% over the past year.
The Earnings Per Share has been growing by 10.61% on average over the past years. This is quite good.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of G contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.