GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - New York Stock Exchange, Inc. - BMG3922B1072 - Common Stock - Currency: USD
G gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making G a very profitable company, without any liquidiy or solvency issues. G scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make G a good candidate for value and 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.
Each year in the past 5 years G has been profitable.
G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
G has a Return On Assets of 10.78%. This is amongst the best in the industry. G outperforms 86.59% of its industry peers.
The Return On Equity of G (21.51%) is better than 86.59% of its industry peers.
The Return On Invested Capital of G (13.42%) is better than 82.93% of its industry peers.
G had an Average Return On Invested Capital over the past 3 years of 12.82%. This is significantly below the industry average of 21.64%.
The 3 year average ROIC (12.82%) for G is below the current ROIC(13.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 21.51% | ||
| ROIC | 13.42% |
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
With a decent Profit Margin value of 10.88%, G is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Profit Margin of G has grown nicely.
G has a Operating Margin of 14.96%. This is amongst the best in the industry. G outperforms 81.71% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.
G has a Gross Margin (35.51%) which is in line with its industry peers.
In the last couple of years the Gross Margin of G has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 10.88% | ||
| GM | 35.51% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so G is still creating some value.
G has less shares outstanding than it did 1 year ago.
G has less shares outstanding than it did 5 years ago.
G has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.07 indicates that G is not in any danger for bankruptcy at the moment.
The Altman-Z score of G (4.07) is better than 63.41% of its industry peers.
The Debt to FCF ratio of G is 2.07, which is a good value as it means it would take G, 2.07 years of fcf income to pay off all of its debts.
G's Debt to FCF ratio of 2.07 is fine compared to the rest of the industry. G outperforms 70.73% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that G is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, G perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.43
WACC9.36%
2.3 Liquidity
G has a Current Ratio of 2.45. This indicates that G is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.45, G is doing good in the industry, outperforming 75.61% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that G has no problem at all paying its short term obligations.
G has a better Quick ratio (2.45) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.35% in the past year.
Measured over the past years, G shows a small growth in Revenue. The Revenue has been growing by 6.25% on average per year.
EPS 1Y (TTM)9.57%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%15.07%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%7.4%
3.2 Future
G is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.33% yearly.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y9.82%
EPS Next 2Y9.01%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue Next Year4.13%
Revenue Next 2Y4.96%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.35, G is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 81.71% of the companies listed in the same industry.
G is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.62, the valuation of G can be described as very reasonable.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, G is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of G indicates a somewhat cheap valuation: G is cheaper than 75.61% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of G indicates a rather cheap valuation: G is cheaper than 89.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 10.49 |
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)1.36
PEG (5Y)1.42
EPS Next 2Y9.01%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.48, G pays a better dividend. On top of this G pays more dividend than 84.15% of the companies listed in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of G is nicely growing with an annual growth rate of 12.42%!
G has paid a dividend for at least 10 years, which is a reliable track record.
G has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.42%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
20.99% 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.
DP20.99%
EPS Next 2Y9.01%
EPS Next 3Y10.33%
44.31
-0.99 (-2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.66%
Inst Owner Change0%
Ins Owners0.93%
Ins Owner Change-5.13%
Market Cap7.75B
Analysts77.65
Price Target52.22 (17.85%)
Short Float %3.69%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP20.99%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.27%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-2.08%
Max EPS beat(4)3.86%
EPS beat(8)7
Avg EPS beat(8)3.37%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)15
Avg EPS beat(16)5.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.59%
PT rev (1m)-8.98%
PT rev (3m)-13.22%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.6 | ||
| P/FCF | 12.95 | ||
| P/OCF | 11.37 | ||
| P/B | 3.16 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)3.32
EY7.49%
EPS(NY)3.81
Fwd EY8.61%
FCF(TTM)3.42
FCFY7.72%
OCF(TTM)3.9
OCFY8.79%
SpS27.74
BVpS14.03
TBVpS4.33
PEG (NY)1.36
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 21.51% | ||
| ROCE | 17.69% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.57% | ||
| ROICexgc | 29.9% | ||
| OM | 14.96% | ||
| PM (TTM) | 10.88% | ||
| GM | 35.51% | ||
| FCFM | 12.33% |
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)35.91%
ROICexgc(5y)36.08%
ROCE(3y)17.13%
ROCE(5y)15.64%
ROICexcg growth 3Y-10.54%
ROICexcg growth 5Y5.29%
ROICexc growth 3Y4.25%
ROICexc growth 5Y8.42%
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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 89.15% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 11.22 | ||
| Cash Conversion | 83.2% | ||
| Profit Quality | 113.4% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 4.07 |
F-Score7
WACC9.36%
ROIC/WACC1.43
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)9.57%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%15.07%
EPS Next Y9.82%
EPS Next 2Y9.01%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue 1Y (TTM)7.35%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%7.4%
Revenue Next Year4.13%
Revenue Next 2Y4.96%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y13.26%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year14.27%
EBIT Next 3Y10.67%
EBIT Next 5YN/A
FCF growth 1Y26.25%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y30.07%
OCF growth 3Y-3.94%
OCF growth 5Y7.54%