GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - New York Stock Exchange, Inc. - BMG3922B1072 - Common Stock - Currency: USD
Overall G gets a fundamental rating of 7 out of 10. We evaluated G against 82 industry peers in the IT Services industry. G scores excellent points on both the profitability and health parts. This is a solid base for a good stock. G is not valued too expensively and it also shows a decent growth rate. These ratings would make G suitable for quality investing!
1. Profitability
1.1 Basic Checks
G had positive earnings in the past year.
In the past year G had a positive cash flow from operations.
G had positive earnings in each of the past 5 years.
Each year in the past 5 years G had a positive operating cash flow.
1.2 Ratios
The Return On Assets of G (10.30%) is better than 85.90% of its industry peers.
G's Return On Equity of 21.50% is amongst the best of the industry. G outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.24%, G belongs to the top of the industry, outperforming 85.90% of the companies in the same industry.
G had an Average Return On Invested Capital over the past 3 years of 12.82%. This is above the industry average of 10.27%.
The last Return On Invested Capital (13.24%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.5% | ||
| ROIC | 13.24% |
ROA(3y)10.38%
ROA(5y)8.98%
ROE(3y)22.97%
ROE(5y)21.04%
ROIC(3y)12.82%
ROIC(5y)11.64%
1.3 Margins
G has a better Profit Margin (10.78%) than 78.21% of its industry peers.
G's Profit Margin has improved in the last couple of years.
G's Operating Margin of 14.73% is amongst the best of the industry. G outperforms 82.05% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.
Looking at the Gross Margin, with a value of 35.45%, G is in line with its industry, outperforming 52.56% of the companies in the same industry.
G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.73% | ||
| PM (TTM) | 10.78% | ||
| GM | 35.45% |
OM growth 3Y5.04%
OM growth 5Y3.32%
PM growth 3Y5.47%
PM growth 5Y4.47%
GM growth 3Y-0.14%
GM growth 5Y0.36%
2. Health
2.1 Basic Checks
G has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, G has less shares outstanding
Compared to 5 years ago, G has less shares outstanding
G has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.17 indicates that G is not in any danger for bankruptcy at the moment.
The Altman-Z score of G (4.17) is better than 69.23% of its industry peers.
G has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as G would need 2.30 years to pay back of all of its debts.
The Debt to FCF ratio of G (2.30) is better than 66.67% of its industry peers.
G has a Debt/Equity ratio of 0.50. This is a neutral value indicating G is somewhat dependend on debt financing.
G has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: G outperforms 46.15% of its industry peers.
Even though the debt/equity ratio score it not favorable for G, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.23
WACC10.77%
2.3 Liquidity
A Current Ratio of 2.16 indicates that G has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.16, G is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that G has no problem at all paying its short term obligations.
G's Quick ratio of 2.16 is fine compared to the rest of the industry. G outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.38% yearly.
G shows a small growth in Revenue. In the last year, the Revenue has grown by 6.48%.
The Revenue has been growing slightly by 6.25% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%10.98%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%8.94%
3.2 Future
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.11% on average per year.
The Revenue is expected to grow by 7.92% on average over the next years.
EPS Next Y12.78%
EPS Next 2Y11.45%
EPS Next 3Y11.11%
EPS Next 5YN/A
Revenue Next Year7.23%
Revenue Next 2Y7.35%
Revenue Next 3Y7.92%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
G is valuated correctly with a Price/Earnings ratio of 16.44.
78.21% of the companies in the same industry are more expensive than G, based on the Price/Earnings ratio.
G is valuated rather cheaply when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.57, which indicates a correct valuation of G.
G's Price/Forward Earnings ratio is rather cheap when compared to the industry. G is cheaper than 80.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (22.65), we can say G is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than 74.36% of the companies in the same industry.
78.21% of the companies in the same industry are more expensive than G, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
G's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of G may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.75
EPS Next 2Y11.45%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.94, G pays a better dividend. On top of this G pays more dividend than 82.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, G's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of G is nicely growing with an annual growth rate of 12.42%!
G has been paying a dividend for at least 10 years, so it has a reliable track record.
As G did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)12.42%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
21.12% of the earnings are spent on dividend by G. This is a low number and sustainable payout ratio.
The dividend of G is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.12%
EPS Next 2Y11.45%
EPS Next 3Y11.11%
NYSE:G (2/27/2025, 3:32:59 PM)
52.76
-0.12 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-1.95%
Ins Owners0.98%
Ins Owner Change-13.09%
Market Cap9.22B
Analysts76.47
Price Target60.18 (14.06%)
Short Float %3.38%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP21.12%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.48%
Min EPS beat(2)3.27%
Max EPS beat(2)3.69%
EPS beat(4)3
Avg EPS beat(4)2.48%
Min EPS beat(4)-2.08%
Max EPS beat(4)5.04%
EPS beat(8)7
Avg EPS beat(8)3.22%
EPS beat(12)11
Avg EPS beat(12)4.4%
EPS beat(16)15
Avg EPS beat(16)6.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)24.47%
PT rev (3m)46.4%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)8.19%
EPS NY rev (1m)2.88%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.57 | ||
| P/S | 1.93 | ||
| P/FCF | 17.38 | ||
| P/OCF | 14.97 | ||
| P/B | 3.86 | ||
| P/tB | 13.3 | ||
| EV/EBITDA | 12.23 |
EPS(TTM)3.21
EY6.08%
EPS(NY)3.62
Fwd EY6.86%
FCF(TTM)3.04
FCFY5.75%
OCF(TTM)3.52
OCFY6.68%
SpS27.29
BVpS13.68
TBVpS3.97
PEG (NY)1.29
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.5% | ||
| ROCE | 17.45% | ||
| ROIC | 13.24% | ||
| ROICexc | 15.9% | ||
| ROICexgc | 32.19% | ||
| OM | 14.73% | ||
| PM (TTM) | 10.78% | ||
| GM | 35.45% | ||
| FCFM | 11.12% |
ROA(3y)10.38%
ROA(5y)8.98%
ROE(3y)22.97%
ROE(5y)21.04%
ROIC(3y)12.82%
ROIC(5y)11.64%
ROICexc(3y)15.47%
ROICexc(5y)14.31%
ROICexgc(3y)35.88%
ROICexgc(5y)36.06%
ROCE(3y)17.13%
ROCE(5y)15.64%
ROICexcg growth 3Y-10.61%
ROICexcg growth 5Y5.24%
ROICexc growth 3Y4.21%
ROICexc growth 5Y8.39%
OM growth 3Y5.04%
OM growth 5Y3.32%
PM growth 3Y5.47%
PM growth 5Y4.47%
GM growth 3Y-0.14%
GM growth 5Y0.36%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 88.55% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 77.09% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 4.17 |
F-Score7
WACC10.77%
ROIC/WACC1.23
Cap/Depr(3y)62.36%
Cap/Depr(5y)54.31%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.59%
Profit Quality(3y)93.94%
Profit Quality(5y)123.55%
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%10.98%
EPS Next Y12.78%
EPS Next 2Y11.45%
EPS Next 3Y11.11%
EPS Next 5YN/A
Revenue 1Y (TTM)6.48%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%8.94%
Revenue Next Year7.23%
Revenue Next 2Y7.35%
Revenue Next 3Y7.92%
Revenue Next 5YN/A
EBIT growth 1Y12.02%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year16.38%
EBIT Next 3Y15.23%
EBIT Next 5YN/A
FCF growth 1Y22.72%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y25.39%
OCF growth 3Y-3.94%
OCF growth 5Y7.54%