NYSE:G, an undervalued stock with good fundamentals.

Last update: Dec 27, 2024

Our stock screening tool has identified GENPACT LTD (NYSE:G) as an undervalued gem with strong fundamentals. NYSE:G boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Looking at the Valuation

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:

Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 86.42% of the companies are valued more expensively.
G's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.55.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 86.42% of the companies are valued more expensively.
G is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than 79.01% of the companies in the same industry.
83.95% of the companies in the same industry are more expensive than G, based on the Price/Free Cash Flow ratio.
G has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing 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 9 is noteworthy for profitability:

G's Return On Assets of 12.45% is amongst the best of the industry. G outperforms 91.36% of its industry peers.
Looking at the Return On Equity, with a value of 27.69%, G belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
G has a Return On Invested Capital of 12.71%. This is amongst the best in the industry. G outperforms 82.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for G is above the industry average of 9.35%.
The 3 year average ROIC (11.94%) for G is below the current ROIC(12.71%), indicating increased profibility in the last year.
The Profit Margin of G (14.21%) is better than 92.59% of its industry peers.
G's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.46%, G belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of G has grown nicely.

A Closer Look at 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 5 out of 10:

An Altman-Z score of 3.42 indicates that G is not in any danger for bankruptcy at the moment.
G has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as G would need 3.16 years to pay back of all of its debts.

Growth Analysis for NYSE:G

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 5 out of 10:

The Earnings Per Share has grown by an nice 9.09% over the past year.
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.
G shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.33% yearly.
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.84% on average per year.

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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.