GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
44.64 USD
+0.56 (+1.27%)
44.64 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to G. G was compared to 86 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes G very considerable 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.
G had positive earnings in each of the past 5 years.
G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of G (10.28%) is better than 83.72% of its industry peers.
G's Return On Equity of 21.67% is amongst the best of the industry. G outperforms 84.88% of its industry peers.
With an excellent Return On Invested Capital value of 14.49%, G belongs to the best of the industry, outperforming 86.05% 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 significantly below the industry average of 29.74%.
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
With an excellent Profit Margin value of 11.01%, G belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
G's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.87%, G is doing good in the industry, outperforming 79.07% of the companies in the same industry.
G's Operating Margin has improved in the last couple of years.
G's Gross Margin of 35.82% is in line compared to the rest of the industry. G outperforms 54.65% of 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 | 14.87% | ||
| 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.
Compared to 5 years ago, G has less shares outstanding
Compared to 1 year ago, G has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.54 indicates that G is not in any danger for bankruptcy at the moment.
G has a Altman-Z score of 3.54. This is in the better half of the industry: G outperforms 63.95% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.90, G is doing good in the industry, outperforming 72.09% of the companies in the same industry.
G has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
G has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.69
WACC8.55%
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 46.51% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that G should not have too much problems paying its short term obligations.
G has a Quick ratio (1.51) which is comparable to the rest of the industry.
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.
G shows a small growth in Revenue. In the last year, the Revenue has grown by 7.39%.
G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.25% yearly.
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
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y11.07%
EPS Next 3Y11.07%
EPS Next 5YN/A
Revenue Next Year5.82%
Revenue Next 2Y6.27%
Revenue Next 3Y6.61%
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.
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
With a Price/Earnings ratio of 12.40, G is valued correctly.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 84.88% of the companies are valued more expensively.
G is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.27, the valuation of G can be described as very reasonable.
G's Price/Forward Earnings ratio is rather cheap when compared to the industry. G is cheaper than 84.88% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (34.45), we can say G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
G's Price/Free Cash Flow ratio is rather cheap when compared to the industry. G is cheaper than 82.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 9.63 |
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.
G has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.32
EPS Next 2Y11.07%
EPS Next 3Y11.07%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.06, G pays a better dividend. On top of this G pays more dividend than 86.05% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, G is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
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 2Y11.07%
EPS Next 3Y11.07%
44.64
+0.56 (+1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner Change0.48%
Ins Owners0.87%
Ins Owner Change-3.63%
Market Cap7.70B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target50.9 (14.02%)
Short Float %4.68%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP20.93%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)-4.24%
PT rev (3m)-2.95%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)1.52%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.27 | ||
| P/S | 1.54 | ||
| P/FCF | 11.98 | ||
| P/OCF | 10.55 | ||
| P/B | 3.02 | ||
| P/tB | 11.16 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)3.6
EY8.06%
EPS(NY)3.96
Fwd EY8.87%
FCF(TTM)3.73
FCFY8.35%
OCF(TTM)4.23
OCFY9.48%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.98
PEG (5Y)1.32
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 | 3.54 |
F-Score7
WACC8.55%
ROIC/WACC1.69
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 Y12.71%
EPS Next 2Y11.07%
EPS Next 3Y11.07%
EPS Next 5YN/A
Revenue 1Y (TTM)7.39%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.63%
Revenue Next Year5.82%
Revenue Next 2Y6.27%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y10.42%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year18.78%
EBIT Next 3Y12.58%
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.
Can you provide the valuation status for GENPACT LTD?
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.
What is the expected EPS growth for GENPACT LTD (G) stock?
The Earnings per Share (EPS) of GENPACT LTD (G) is expected to grow by 12.71% in the next year.
Can you provide the dividend sustainability for G stock?
The dividend rating of GENPACT LTD (G) is 6 / 10 and the dividend payout ratio is 20.93%.