Despite its impressive fundamentals, NYSE:G remains undervalued.

Our stock screening tool has pinpointed GENPACT LTD (NYSE:G) as an undervalued stock option. NYSE:G retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

A Closer Look at Valuation 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:

• The Price/Earnings ratio is 10.50, which indicates a very decent valuation of G.
• Compared to the rest of the industry, the Price/Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 91.46% of the companies listed in the same industry.
• G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
• A Price/Forward Earnings ratio of 9.43 indicates a reasonable 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 89.02% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (20.13), we can say G is valued rather cheaply.
• 79.27% of the companies in the same industry are more expensive than G, based on the Enterprise Value to EBITDA ratio.
• 84.15% 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.

Understanding NYSE:G's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:G has earned a 8 out of 10:

• With an excellent Return On Assets value of 13.55%, G belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
• G's Return On Equity of 27.94% is amongst the best of the industry. G outperforms 92.68% of its industry peers.
• The Return On Invested Capital of G (13.50%) is better than 85.37% 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.
• The Profit Margin of G (14.21%) is better than 92.68% of its industry peers.
• G's Profit Margin has improved in the last couple of years.
• The Operating Margin of G (14.18%) is better than 80.49% of its industry peers.
• In the last couple of years the Operating Margin of G has grown nicely.

Evaluating Health: NYSE:G

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:G has earned a 6 out of 10:

• An Altman-Z score of 3.31 indicates that G is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.31, G is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
• 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.
• A Debt/Equity ratio of 0.38 indicates that G is not too dependend on debt financing.

Growth Assessment of NYSE:G

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:G was assigned a score of 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.
• Measured over the past years, G shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.

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

Check the latest full fundamental report of G for a complete fundamental analysis.

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.