NYSE:G is probably undervalued for the fundamentals it is displaying.

GENPACT LTD (NYSE:G) has caught the attention of our stock screener as a great value stock. NYSE:G excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Assessing Valuation 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:

• Based on the Price/Earnings ratio, G is valued cheaper than 86.08% of the companies in the same industry.
• G's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.58.
• Based on the Price/Forward Earnings ratio, G is valued cheaper than 86.08% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 24.47. G is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, G is valued cheaply inside the industry as 81.01% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of G indicates a rather cheap valuation: G is cheaper than 86.08% of the companies listed in the same industry.
• The excellent profitability rating of G may justify a higher PE ratio.

What does the Profitability looks like for NYSE:G

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 9:

• G has a better Return On Assets (12.45%) than 91.14% of its industry peers.
• G has a better Return On Equity (27.69%) than 91.14% of its industry peers.
• The Return On Invested Capital of G (12.71%) is better than 83.54% of its industry peers.
• G had an Average Return On Invested Capital over the past 3 years of 11.94%. This is above the industry average of 9.86%.
• The 3 year average ROIC (11.94%) for G is below the current ROIC(12.71%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 14.21%, G belongs to the top of the industry, outperforming 92.41% of the companies in the same industry.
• G's Profit Margin has improved in the last couple of years.
• G's Operating Margin of 14.46% is amongst the best of the industry. G outperforms 81.01% of its industry peers.
• G's Operating Margin has improved in the last couple of years.

Health Assessment of 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:

• G has an Altman-Z score of 3.53. This indicates that G is financially healthy and has little risk of 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 Assessment of 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 5 for growth:

• G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.09%, which is quite good.
• The Earnings Per Share has been growing by 10.61% on average over the past years. This is quite good.
• 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.

Every day, new Decent Value stocks can be found on ChartMill 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.