GENPACT LTD (G) Stock Fundamental Analysis
USA - NYSE:G - BMG3922B1072 - Common Stock
39.49 USD
-0.29 (-0.73%)
39.49 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. While G has a great profitability rating, there are some minor concerns on its financial health. G scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, G could be worth investigating further for value 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.
Each year in the past 5 years G had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.14%, G belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.81%, G belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
G has a Return On Invested Capital of 13.94%. This is amongst the best in the industry. G outperforms 84.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for G is significantly below the industry average of 21.61%.
The last Return On Invested Capital (13.94%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 20.81% | ||
| ROIC | 13.94% |
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
G has a Profit Margin of 10.92%. This is in the better half of the industry: G outperforms 77.91% of its industry peers.
G's Profit Margin has improved in the last couple of years.
The Operating Margin of G (14.91%) is better than 79.07% of its industry peers.
G's Operating Margin has improved in the last couple of years.
G has a Gross Margin (35.63%) which is in line with its industry peers.
G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.91% | ||
| PM (TTM) | 10.92% | ||
| GM | 35.63% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), G is creating some value.
Compared to 1 year ago, G has less shares outstanding
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 3.43 indicates that G is not in any danger for bankruptcy at the moment.
G's Altman-Z score of 3.43 is in line compared to the rest of the industry. G outperforms 56.98% of its industry peers.
G has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as G would need 2.34 years to pay back of all of its debts.
G's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. G outperforms 67.44% of its industry peers.
G has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of G (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.57
WACC8.87%
2.3 Liquidity
G has a Current Ratio of 1.53. 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 Current ratio of 1.53. This is comparable to the rest of the industry: G outperforms 44.19% of its industry peers.
A Quick Ratio of 1.53 indicates that G should not have too much problems paying its short term obligations.
G's Quick ratio of 1.53 is in line compared to the rest of the industry. G outperforms 44.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.85%, 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.
Looking at the last year, G shows a small growth in Revenue. The Revenue has grown by 7.40% in the last year.
G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.25% yearly.
EPS 1Y (TTM)14.85%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%22.22%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.65%
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 11.15% on average per year.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 6.63% on average per year.
EPS Next Y12.76%
EPS Next 2Y11.13%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue Next Year5.84%
Revenue Next 2Y6.27%
Revenue Next 3Y6.63%
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 stable.
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 11.35 indicates a reasonable valuation of G.
Based on the Price/Earnings ratio, G is valued cheaper than 86.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. G is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.96, the valuation of G can be described as reasonable.
Based on the Price/Forward Earnings ratio, G is valued cheaper than 89.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (22.99), we can say G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued cheaply inside the industry as 80.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 9.01 |
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)0.89
PEG (5Y)1.21
EPS Next 2Y11.13%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, G pays a better dividend. On top of this G pays more dividend than 87.21% of the companies listed 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 | 1.71% |
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
21.00% of the earnings are spent on dividend by G. This is a low number and sustainable payout ratio.
The dividend of G is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21%
EPS Next 2Y11.13%
EPS Next 3Y11.15%
39.49
-0.29 (-0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner Change0.5%
Ins Owners0.87%
Ins Owner Change-0.65%
Market Cap6.88B
Revenue(TTM)4.93B
Net Income(TTM)538.30M
Analysts76.67
Price Target53.16 (34.62%)
Short Float %4.47%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP21%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)0.75%
Max EPS beat(2)3.86%
EPS beat(4)4
Avg EPS beat(4)2.89%
Min EPS beat(4)0.75%
Max EPS beat(4)3.86%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)3.14%
EPS beat(16)15
Avg EPS beat(16)4.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)-0.64%
PT rev (1m)-0.37%
PT rev (3m)0.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)0.06%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 9.96 | ||
| P/S | 1.4 | ||
| P/FCF | 12.25 | ||
| P/OCF | 10.6 | ||
| P/B | 2.66 | ||
| P/tB | 9.62 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)3.48
EY8.81%
EPS(NY)3.96
Fwd EY10.04%
FCF(TTM)3.22
FCFY8.16%
OCF(TTM)3.73
OCFY9.44%
SpS28.28
BVpS14.84
TBVpS4.1
PEG (NY)0.89
PEG (5Y)1.21
Graham Number34.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 20.81% | ||
| ROCE | 18.77% | ||
| ROIC | 13.94% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 38.18% | ||
| OM | 14.91% | ||
| PM (TTM) | 10.92% | ||
| GM | 35.63% | ||
| FCFM | 11.39% |
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 | 0.36 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 96.63% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 78.64% | ||
| Profit Quality | 104.33% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 3.43 |
F-Score7
WACC8.87%
ROIC/WACC1.57
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)14.85%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%22.22%
EPS Next Y12.76%
EPS Next 2Y11.13%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.65%
Revenue Next Year5.84%
Revenue Next 2Y6.27%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
EBIT growth 1Y11.58%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year18.78%
EBIT Next 3Y12.58%
EBIT Next 5YN/A
FCF growth 1Y3.62%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y9.53%
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 12.76% 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 21%.