GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
45.76 USD
-0.46 (-1%)
45.76 USD
0 (0%)
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 85 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make G a good candidate for value and quality 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.
G had positive earnings in each of the past 5 years.
Each year in the past 5 years G had a positive operating cash flow.
1.2 Ratios
The Return On Assets of G (10.28%) is better than 82.35% of its industry peers.
G has a better Return On Equity (21.67%) than 84.71% of its industry peers.
G has a Return On Invested Capital of 14.49%. This is amongst the best in the industry. G outperforms 87.06% 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 29.59%.
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 a decent Profit Margin value of 11.01%, G is doing good in the industry, outperforming 78.82% 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 78.82% of the companies in the same industry.
In the last couple of years the Operating Margin of G has grown nicely.
G has a Gross Margin (35.82%) 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 | 14.87% | ||
| 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.
The number of shares outstanding for G has been reduced compared to 5 years ago.
The debt/assets ratio for G has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.61 indicates that G is not in any danger for bankruptcy at the moment.
G has a Altman-Z score of 3.61. This is in the better half of the industry: G outperforms 62.35% 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.
G has a better Debt to FCF ratio (1.90) than 72.94% 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 (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.68
WACC8.64%
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.
With a Current ratio value of 1.51, G perfoms like the industry average, outperforming 44.71% 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 of 1.51. This is comparable to the rest of the industry: G outperforms 47.06% of its industry peers.
G does not score too well on the current and quick ratio evaluation. However, as it has 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%.
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
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.68% on average per year.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y15.03%
EPS Next 2Y11.87%
EPS Next 3Y11.68%
EPS Next 5YN/A
Revenue Next Year6.77%
Revenue Next 2Y6.84%
Revenue Next 3Y7.01%
Revenue Next 5YN/A
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 accelerating.
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
G is valuated correctly with a Price/Earnings ratio of 12.71.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
G is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.39, which indicates a very decent valuation of G.
Compared to the rest of the industry, the Price/Forward Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 82.35% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (23.56), we can say G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.39 |
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 77.65% of the companies listed in the same industry.
83.53% of the companies in the same industry are more expensive than G, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.28 | ||
| EV/EBITDA | 10.07 |
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)0.85
PEG (5Y)1.35
EPS Next 2Y11.87%
EPS Next 3Y11.68%
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.
G's Dividend Yield is rather good when compared to the industry average which is at 1.95. G pays more dividend than 87.06% of the companies in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y11.87%
EPS Next 3Y11.68%
45.76
-0.46 (-1%)
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 Change-3.63%
Market Cap7.89B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target50.9 (11.23%)
Short Float %4.35%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)-0.2%
PT rev (3m)-4.6%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)2.05%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.39 | ||
| P/S | 1.57 | ||
| P/FCF | 12.28 | ||
| P/OCF | 10.82 | ||
| P/B | 3.1 | ||
| P/tB | 11.44 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)3.6
EY7.87%
EPS(NY)4.02
Fwd EY8.78%
FCF(TTM)3.73
FCFY8.14%
OCF(TTM)4.23
OCFY9.25%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.85
PEG (5Y)1.35
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 | 3.61 |
F-Score7
WACC8.64%
ROIC/WACC1.68
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 Y15.03%
EPS Next 2Y11.87%
EPS Next 3Y11.68%
EPS Next 5YN/A
Revenue 1Y (TTM)7.39%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.63%
Revenue Next Year6.77%
Revenue Next 2Y6.84%
Revenue Next 3Y7.01%
Revenue Next 5YN/A
EBIT growth 1Y10.42%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year19.64%
EBIT Next 3Y12.88%
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 15.03% 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%.