NYSE:G: good value for what you're paying.

Last update: May 17, 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.

Valuation Examination for NYSE:G

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:G has earned a 7 for valuation:

With a Price/Earnings ratio of 11.36, the valuation of G can be described as very reasonable.
G's Price/Earnings ratio is rather cheap when compared to the industry. G is cheaper than 90.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.83. G is valued rather cheaply when compared to this.
G is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 89.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.47. G is valued slightly cheaper when compared to this.
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.
Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 84.52% of the companies are valued more expensively.
G has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing 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 8 for profitability:

G's Return On Assets of 13.55% is amongst the best of the industry. G outperforms 91.67% of its industry peers.
G has a Return On Equity of 27.94%. This is amongst the best in the industry. G outperforms 91.67% of its industry peers.
G has a better Return On Invested Capital (13.50%) than 84.52% of its industry peers.
The 3 year average ROIC (11.94%) for G is below the current ROIC(13.50%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 14.21%, G belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
G's Profit Margin has improved in the last couple of years.
G has a better Operating Margin (14.18%) than 77.38% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.

Health Examination for NYSE:G

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:G has achieved a 6 out of 10:

An Altman-Z score of 3.43 indicates that G is not in any danger for bankruptcy at the moment.
G's Altman-Z score of 3.43 is fine compared to the rest of the industry. G outperforms 63.10% of its industry peers.
The Debt to FCF ratio of G is 3.05, which is a good value as it means it would take G, 3.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.05, G is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
G has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.

What does the Growth looks like for NYSE:G

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:G has earned a 4 for growth:

Measured over the past years, G shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.61% on average per year.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.