GENPACT LTD (G)
BMG3922B1072 - Common Stock
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 84 industry peers in the IT Services industry. While G belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. G has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year G was profitable.
G had a positive operating cash flow in the past year.
Each year in the past 5 years G has been profitable.
Each year in the past 5 years G had a positive operating cash flow.
1.2 Ratios
The Return On Assets of G (12.45%) is better than 91.46% of its industry peers.
With an excellent Return On Equity value of 27.69%, G belongs to the best of the industry, outperforming 91.46% 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 82.93% 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 9.59%.
The last Return On Invested Capital (12.71%) for G is above the 3 year average (11.94%), which is a sign of increasing profitability.
| 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 91.46% of its industry peers.
G's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.46%, G belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
In the last couple of years the Operating Margin of G has grown nicely.
With a Gross Margin value of 35.41%, G perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
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 | 14.46% | ||
| 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
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
The debt/assets ratio for G has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.47 indicates that G is not in any danger for bankruptcy at the moment.
The Altman-Z score of G (3.47) 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 of 3.16. This is in the better half of the industry: G outperforms 62.20% of its industry peers.
G has a Debt/Equity ratio of 0.51. This is a neutral value indicating G is somewhat dependend on debt financing.
G has a Debt to Equity ratio (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.23
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.85 indicates that G should not have too much problems paying its short term obligations.
The Current ratio of G (1.85) is better than 62.20% of its industry peers.
A Quick Ratio of 1.85 indicates that G should not have too much problems paying its short term obligations.
G's Quick ratio of 1.85 is fine compared to the rest of the industry. G outperforms 62.20% 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.
Measured over the past years, G shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.61% on average per year.
The Revenue has been growing slightly by 5.22% in the past year.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.49% on average over the next years. This is quite good.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y7.94%
EPS Next 2Y7.77%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue Next Year5.64%
Revenue Next 2Y5.81%
Revenue Next 3Y6.16%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
G is valuated correctly with a Price/Earnings ratio of 14.69.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
G is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.24, the valuation of G can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 84.15% 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 (23.82), we can say G is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.24 |
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 74.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, G is valued cheaper than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 10.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of G may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)1.38
EPS Next 2Y7.77%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.35%.
G's Dividend Yield is rather good when compared to the industry average which is at 2.85. G pays more dividend than 84.15% of the companies in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 Years6
Div Non Decr Years6
5.3 Sustainability
G pays out 16.07% of its income as dividend. This is a sustainable payout ratio.
The dividend of G is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.07%
EPS Next 2Y7.77%
EPS Next 3Y8.49%
GENPACT LTD
NYSE:G (11/21/2024, 8:04:00 PM)
After market: 45.82 0 (0%)45.82
+1.18 (+2.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.85
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 27.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.46% | ||
| PM (TTM) | 14.21% | ||
| GM | 35.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.09%
EPS 3Y12.02%
EPS 5Y
EPS Q2Q%
EPS Next Y7.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.22%
Revenue growth 3Y6.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y