GENPACT LTD (G)
BMG3922B1072 - Common Stock
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 83 industry peers in the IT Services industry. G has an excellent profitability rating, but there are some minor concerns on its financial health. G scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make G suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year G was profitable.
In the past year G had a positive cash flow from operations.
In the past 5 years G has always been profitable.
In the past 5 years G always reported a positive cash flow from operatings.
1.2 Ratios
G has a Return On Assets of 12.45%. This is amongst the best in the industry. G outperforms 91.36% of its industry peers.
With an excellent Return On Equity value of 27.69%, G belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
G's Return On Invested Capital of 12.71% is amongst the best of the industry. G outperforms 82.72% 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 9.40%.
The 3 year average ROIC (11.94%) for G is below the current ROIC(12.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 27.69% | ||
| ROIC | 12.71% |
ROA(3y)9.42%
ROA(5y)8.29%
ROE(3y)22.3%
ROE(5y)20.35%
ROIC(3y)11.94%
ROIC(5y)10.85%
1.3 Margins
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.
G has a Operating Margin of 14.46%. This is amongst the best in the industry. G outperforms 81.48% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.
G has a Gross Margin of 35.41%. This is comparable to the rest of the industry: G outperforms 53.09% of its industry peers.
G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 14.21% | ||
| GM | 35.41% |
OM growth 3Y3.2%
OM growth 5Y3.44%
PM growth 3Y19.27%
PM growth 5Y8.45%
GM growth 3Y0.26%
GM growth 5Y-0.49%
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 3.38. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
G has a Altman-Z score (3.38) which is comparable to the rest of the industry.
The Debt to FCF ratio of G is 3.16, which is a good value as it means it would take G, 3.16 years of fcf income to pay off all of its debts.
G has a Debt to FCF ratio (3.16) which is in line with its industry peers.
A Debt/Equity ratio of 0.51 indicates that G is somewhat dependend on debt financing.
G has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.12
WACC11.34%
2.3 Liquidity
G has a Current Ratio of 1.85. 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 (1.85) which is comparable to the rest of the industry.
G has a Quick Ratio of 1.85. 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 1.85 is in line compared to the rest of the industry. G outperforms 59.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.09%, which is quite good.
G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.61% yearly.
The Revenue has been growing slightly by 5.22% in the past year.
G shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.33% yearly.
EPS 1Y (TTM)9.09%
EPS 3Y12.02%
EPS 5Y10.61%
EPS Q2Q%11.84%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y6.47%
Revenue growth 5Y8.33%
Sales Q2Q%6.62%
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 8.84% yearly.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y10.7%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
EPS Next 5Y8.84%
Revenue Next Year6.63%
Revenue Next 2Y6.61%
Revenue Next 3Y6.71%
Revenue Next 5Y7.45%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.52, 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 86.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of G to the average of the S&P500 Index (27.73), we can say G is valued rather cheaply.
G is valuated reasonably with a Price/Forward Earnings ratio of 11.99.
Based on the Price/Forward Earnings ratio, G is valued cheaper than 87.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (22.83), we can say G is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of G indicates a rather cheap valuation: G is cheaper than 80.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, G is valued cheaper than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.3 | ||
| EV/EBITDA | 10.43 |
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)1.26
PEG (5Y)1.27
EPS Next 2Y8.67%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 2.74, G pays a better dividend. On top of this G pays more dividend than 85.19% of the companies listed in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
On average, the dividend of G grows each year by 13.05%, which is quite nice.
G has been paying a dividend for over 5 years, so it has already some track record.
As G did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.05%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
G pays out 16.07% of its income as dividend. This is a sustainable payout ratio.
G's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.07%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
GENPACT LTD
NYSE:G (12/20/2024, 8:13:57 PM)
After market: 42.19 0 (0%)42.19
-0.11 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change-0.42%
Ins Owners1.09%
Ins Owner Change-0.54%
Market Cap7.44B
Analysts72.63
Price Target48.13 (14.08%)
Short Float %3.72%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Dividend Growth(5Y)13.05%
DP16.07%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-2.08%
Max EPS beat(2)3.69%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-2.08%
Max EPS beat(4)9.11%
EPS beat(8)7
Avg EPS beat(8)2.91%
EPS beat(12)11
Avg EPS beat(12)4.25%
EPS beat(16)15
Avg EPS beat(16)6.68%
Revenue beat(2)2
Avg Revenue beat(2)0.52%
Min Revenue beat(2)0.16%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.53%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)17.08%
PT rev (3m)21.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.74%
EPS NY rev (1m)2.56%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.41%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.6 | ||
| P/FCF | 14.3 | ||
| P/OCF | 12.32 | ||
| P/B | 3.11 | ||
| P/tB | 10.97 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)3.12
EY7.4%
EPS(NY)3.52
Fwd EY8.34%
FCF(TTM)2.95
FCFY6.99%
OCF(TTM)3.43
OCFY8.12%
SpS26.45
BVpS13.58
TBVpS3.85
PEG (NY)1.26
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 27.69% | ||
| ROCE | 16.74% | ||
| ROIC | 12.71% | ||
| ROICexc | 17.07% | ||
| ROICexgc | 39.84% | ||
| OM | 14.46% | ||
| PM (TTM) | 14.21% | ||
| GM | 35.41% | ||
| FCFM | 11.16% |
ROA(3y)9.42%
ROA(5y)8.29%
ROE(3y)22.3%
ROE(5y)20.35%
ROIC(3y)11.94%
ROIC(5y)10.85%
ROICexc(3y)14.86%
ROICexc(5y)13.27%
ROICexgc(3y)40.21%
ROICexgc(5y)34.65%
ROCE(3y)15.96%
ROCE(5y)14.63%
ROICexcg growth 3Y13.69%
ROICexcg growth 5Y6.41%
ROICexc growth 3Y13.79%
ROICexc growth 5Y8.5%
OM growth 3Y3.2%
OM growth 5Y3.44%
PM growth 3Y19.27%
PM growth 5Y8.45%
GM growth 3Y0.26%
GM growth 5Y-0.49%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 85.95% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 12.14 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | 78.48% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 3.38 |
F-Score6
WACC11.34%
ROIC/WACC1.12
Cap/Depr(3y)44.23%
Cap/Depr(5y)53.51%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.85%
Profit Quality(3y)117.02%
Profit Quality(5y)123.83%
High Growth Momentum
Growth
EPS 1Y (TTM)9.09%
EPS 3Y12.02%
EPS 5Y10.61%
EPS Q2Q%11.84%
EPS Next Y10.7%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
EPS Next 5Y8.84%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y6.47%
Revenue growth 5Y8.33%
Sales Q2Q%6.62%
Revenue Next Year6.63%
Revenue Next 2Y6.61%
Revenue Next 3Y6.71%
Revenue Next 5Y7.45%
EBIT growth 1Y11.9%
EBIT growth 3Y9.88%
EBIT growth 5Y12.05%
EBIT Next Year11.65%
EBIT Next 3Y10.32%
EBIT Next 5Y12.55%
FCF growth 1Y29.9%
FCF growth 3Y-5%
FCF growth 5Y19.26%
OCF growth 1Y31.1%
OCF growth 3Y-5.65%
OCF growth 5Y7.65%