GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
48.05 USD
-0.04 (-0.08%)
48.05 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 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
G has a better Return On Assets (10.28%) than 82.95% of its industry peers.
G has a Return On Equity of 21.67%. This is amongst the best in the industry. G outperforms 85.23% of its industry peers.
With an excellent Return On Invested Capital value of 14.49%, G belongs to the best of the industry, outperforming 87.50% 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 29.60%.
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
The Profit Margin of G (11.01%) is better than 80.68% of its industry peers.
In the last couple of years the Profit Margin of G has grown nicely.
G has a Operating Margin of 14.87%. This is in the better half 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.
With a Gross Margin value of 35.82%, G perfoms like the industry average, outperforming 54.55% 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 | 14.87% | ||
| 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.
The number of shares outstanding for G has been reduced compared to 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
An Altman-Z score of 3.68 indicates that G is not in any danger for bankruptcy at the moment.
The Altman-Z score of G (3.68) is better than 62.50% 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 Debt to FCF ratio of 1.90. This is in the better half of the industry: G outperforms 73.86% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.63
WACC8.9%
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.
G's Current ratio of 1.51 is in line compared to the rest of the industry. G outperforms 45.45% of its industry peers.
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.
With a Quick ratio value of 1.51, G perfoms like the industry average, outperforming 47.73% of the companies in the same 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.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
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 11.98% on average per year.
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
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.
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
A Price/Earnings ratio of 13.35 indicates a correct valuation of G.
82.95% of the companies in the same industry are more expensive than G, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.57, G is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.93, the valuation of G can be described as very reasonable.
81.82% of the companies in the same industry are more expensive than G, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.04. G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than 78.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, G is valued cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 10.46 |
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)0.89
PEG (5Y)1.42
EPS Next 2Y12.02%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.42%. 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.
G's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of G grows each year by 12.42%, which is quite nice.
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
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 2Y12.02%
EPS Next 3Y11.98%
48.05
-0.04 (-0.08%)
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 Change0.4%
Market Cap8.28B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target51.6 (7.39%)
Short Float %4.51%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)1.18%
PT rev (3m)-3.28%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)2.03%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.93 | ||
| P/S | 1.65 | ||
| P/FCF | 12.9 | ||
| P/OCF | 11.36 | ||
| P/B | 3.26 | ||
| P/tB | 12.02 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)3.6
EY7.49%
EPS(NY)4.03
Fwd EY8.38%
FCF(TTM)3.73
FCFY7.75%
OCF(TTM)4.23
OCFY8.8%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.89
PEG (5Y)1.42
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 | 3.68 |
F-Score7
WACC8.9%
ROIC/WACC1.63
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 Year19.64%
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% 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%.