GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
46.78 USD
-0.4 (-0.85%)
46.9 USD
+0.12 (+0.26%)
Overall G gets a fundamental rating of 7 out of 10. We evaluated G against 88 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, G could be worth investigating further 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.
G had positive earnings in each of the past 5 years.
In the past 5 years G always reported a positive cash flow from operatings.
1.2 Ratios
G's Return On Assets of 10.28% is amongst the best of the industry. G outperforms 82.95% of its industry peers.
G's Return On Equity of 21.67% is amongst the best of the industry. G outperforms 85.23% of its industry peers.
With an excellent Return On Invested Capital value of 14.49%, G belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for G is significantly below the industry average of 29.60%.
The last Return On Invested Capital (14.49%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 21.67% | ||
| ROIC | 14.49% |
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 an excellent Profit Margin value of 11.01%, G belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
In the last couple of years the Profit Margin of G has grown nicely.
Looking at the Operating Margin, with a value of 14.87%, G is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
G's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.82%, G is in line with its industry, outperforming 54.55% 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 | 14.87% | ||
| PM (TTM) | 11.01% | ||
| GM | 35.82% |
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.
Compared to 1 year ago, G has an improved debt to assets ratio.
2.2 Solvency
G has an Altman-Z score of 3.65. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
G has a better Altman-Z score (3.65) than 62.50% of its industry peers.
G has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
The Debt to FCF ratio of G (1.90) is better than 73.86% of its industry peers.
G has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
G's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. G outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.65
WACC8.78%
2.3 Liquidity
G has a Current Ratio of 1.51. This is a normal value and indicates that G is financially healthy and should not expect problems in meeting its short term obligations.
G has a Current ratio of 1.51. This is comparable to the rest of the industry: G outperforms 45.45% of its industry peers.
G has a Quick Ratio of 1.51. This is a normal value and indicates that G is financially healthy and should not expect problems in meeting its short term obligations.
G's Quick ratio of 1.51 is in line compared to the rest of the industry. G outperforms 47.73% of its industry peers.
The current and quick ratio evaluation for G is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.38% 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 9.38% on average per year.
Looking at the last year, G shows a small growth in Revenue. The Revenue has grown by 7.39% in the last year.
The Revenue has been growing slightly by 6.25% on average over the past years.
EPS 1Y (TTM)15.38%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%14.12%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.63%
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 11.98% yearly.
G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y15%
EPS Next 2Y12.02%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.79%
Revenue Next 2Y6.85%
Revenue Next 3Y7.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.99 indicates a correct valuation of G.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 11.61 indicates a reasonable valuation of G.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
G's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
78.41% of the companies in the same industry are more expensive than G, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of G indicates a rather cheap valuation: G is cheaper than 82.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of G may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)1.38
EPS Next 2Y12.02%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.41%.
G's Dividend Yield is rather good when compared to the industry average which is at 0.43. G pays more dividend than 86.36% of the companies in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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.
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
20.93% of the earnings are spent on dividend by G. This is a low number and sustainable payout ratio.
G's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.93%
EPS Next 2Y12.02%
EPS Next 3Y11.98%
46.78
-0.4 (-0.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.8%
Inst Owner Change0.49%
Ins Owners0.86%
Ins Owner Change0.4%
Market Cap8.07B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target51.6 (10.3%)
Short Float %4.22%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP20.93%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.31%
Min EPS beat(2)0.75%
Max EPS beat(2)5.88%
EPS beat(4)4
Avg EPS beat(4)3.44%
Min EPS beat(4)0.75%
Max EPS beat(4)5.88%
EPS beat(8)7
Avg EPS beat(8)3.69%
EPS beat(12)11
Avg EPS beat(12)3.09%
EPS beat(16)15
Avg EPS beat(16)4.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.02%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)7
Avg Revenue beat(16)-0.52%
PT rev (1m)1.38%
PT rev (3m)-3.28%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)2.03%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.61 | ||
| P/S | 1.61 | ||
| P/FCF | 12.56 | ||
| P/OCF | 11.06 | ||
| P/B | 3.17 | ||
| P/tB | 11.7 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)3.6
EY7.7%
EPS(NY)4.03
Fwd EY8.61%
FCF(TTM)3.73
FCFY7.96%
OCF(TTM)4.23
OCFY9.04%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.87
PEG (5Y)1.38
Graham Number34.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 21.67% | ||
| ROCE | 19.09% | ||
| ROIC | 14.49% | ||
| ROICexc | 17.9% | ||
| ROICexgc | 43.41% | ||
| OM | 14.87% | ||
| PM (TTM) | 11.01% | ||
| GM | 35.82% | ||
| FCFM | 12.82% |
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%
ROICexgc growth 3Y-10.54%
ROICexgc 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 93.25% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 11.07 | ||
| Cash Conversion | 87.01% | ||
| Profit Quality | 116.51% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.65 |
F-Score7
WACC8.78%
ROIC/WACC1.65
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)15.38%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%14.12%
EPS Next Y15%
EPS Next 2Y12.02%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue 1Y (TTM)7.39%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.63%
Revenue Next Year6.79%
Revenue Next 2Y6.85%
Revenue Next 3Y7.05%
Revenue Next 5YN/A
EBIT growth 1Y10.42%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year19.92%
EBIT Next 3Y13.14%
EBIT Next 5YN/A
FCF growth 1Y35.92%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y37.99%
OCF growth 3Y-3.94%
OCF growth 5Y7.54%
GENPACT LTD / G FAQ
What is the fundamental rating for G stock?
ChartMill assigns a fundamental rating of 7 / 10 to G.
What is the valuation status for G stock?
ChartMill assigns a valuation rating of 8 / 10 to GENPACT LTD (G). This can be considered as Undervalued.
What is the profitability of G stock?
GENPACT LTD (G) has a profitability rating of 8 / 10.
How financially healthy is GENPACT LTD?
The financial health rating of GENPACT LTD (G) is 8 / 10.
Is the dividend of GENPACT LTD sustainable?
The dividend rating of GENPACT LTD (G) is 6 / 10 and the dividend payout ratio is 20.93%.