Investors should take notice of NYSE:G—it offers a great deal for the fundamentals it presents.

Last update: Oct 24, 2024

Discover GENPACT LTD (NYSE:G), an undervalued stock highlighted by our stock screener. NYSE:G showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Unpacking NYSE:G's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:G has achieved a 7 out of 10:

Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 83.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of G to the average of the S&P500 Index (30.80), we can say G is valued rather cheaply.
The Price/Forward Earnings ratio is 11.12, which indicates a very decent valuation of G.
G's Price/Forward Earnings ratio is rather cheap when compared to the industry. G is cheaper than 87.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (22.48), we can say G is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 80.25% of the companies are valued more expensively.
G has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:G?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:G, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 12.51%, G belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.71%, G belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.57%, G belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
The last Return On Invested Capital (12.57%) for G is above the 3 year average (11.94%), which is a sign of increasing profitability.
G has a Profit Margin of 14.12%. This is amongst the best in the industry. G outperforms 91.36% of its industry peers.
G's Profit Margin has improved in the last couple of years.
The Operating Margin of G (14.35%) is better than 81.48% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.

What does the Health looks like 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 6 reflects its health status:

An Altman-Z score of 3.32 indicates that G is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.32, G is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
G has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as G would need 3.60 years to pay back of all of its debts.
G has a Current ratio of 1.89. This is in the better half of the industry: G outperforms 64.20% of its industry peers.
G has a Quick ratio of 1.89. This is in the better half of the industry: G outperforms 64.20% of its industry peers.

Evaluating Growth: NYSE:G

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:G scores a 4 out of 10:

G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.61% yearly.
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.
G is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.42% yearly.

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

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

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.