GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
47.4 USD
+0.05 (+0.11%)
47.4 USD
0 (0%)
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 88 industry peers in the IT Services industry. G gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
G had a positive operating cash flow in the past year.
Each year in the past 5 years G has been profitable.
In the past 5 years G always reported a positive cash flow from operatings.
1.2 Ratios
G has a better Return On Assets (10.28%) than 82.95% of its industry peers.
G has a better Return On Equity (21.67%) than 85.23% of its industry peers.
G's Return On Invested Capital of 14.49% is amongst the best of the industry. G outperforms 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for G is significantly below the industry average of 28.99%.
The 3 year average ROIC (12.82%) for G is below the current ROIC(14.49%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.01%, G belongs to the top 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.
G's Operating Margin of 14.87% is fine compared to the rest of the industry. G outperforms 79.55% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.
The Gross Margin of G (35.82%) is comparable to the rest of the 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
G has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
G has less shares outstanding than it did 1 year ago.
The number of shares outstanding for G has been reduced compared to 5 years ago.
G has a better debt/assets ratio than last year.
2.2 Solvency
G has an Altman-Z score of 3.66. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.66, G is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of G is 1.90, which is an excellent value as it means it would take G, only 1.90 years of fcf income to pay off all of its debts.
G's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. G outperforms 73.86% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that G is not too dependend on debt financing.
G has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: G outperforms 51.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.61
WACC8.99%
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.
Looking at the Current ratio, with a value of 1.51, G is in line with its industry, outperforming 44.32% of the companies in the same industry.
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 has a Quick ratio (1.51) which is in line with 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
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.38%, 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 9.38% yearly.
G shows a small growth in Revenue. In the last year, the Revenue has grown by 7.39%.
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)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
The Earnings Per Share is expected to grow by 11.98% on average over the next years. This is quite good.
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.
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
Based on the Price/Earnings ratio of 13.17, the valuation of G can be described as correct.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. G is valued rather cheaply when compared to this.
G is valuated reasonably with a Price/Forward Earnings ratio of 11.77.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
G's 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)0.88
PEG (5Y)1.4
EPS Next 2Y12.02%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.44, G pays a better dividend. On top of this G pays more dividend than 86.36% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.94, G is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
G pays out 20.93% 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.
DP20.93%
EPS Next 2Y12.02%
EPS Next 3Y11.98%
47.4
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.82%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change0.26%
Market Cap8.17B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target51.6 (8.86%)
Short Float %4.22%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)-0.02%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.77 | ||
| P/S | 1.63 | ||
| P/FCF | 12.72 | ||
| P/OCF | 11.2 | ||
| P/B | 3.21 | ||
| P/tB | 11.85 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)3.6
EY7.59%
EPS(NY)4.03
Fwd EY8.5%
FCF(TTM)3.73
FCFY7.86%
OCF(TTM)4.23
OCFY8.93%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.88
PEG (5Y)1.4
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 | 3.66 |
F-Score7
WACC8.99%
ROIC/WACC1.61
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%.