GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - New York Stock Exchange, Inc. - BMG3922B1072 - Common Stock - Currency: USD
G gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. While G has a great profitability rating, there are some minor concerns on its financial health. G is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make G a good candidate 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.
In the past 5 years G has always been profitable.
G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
G has a better Return On Assets (12.45%) than 91.14% of its industry peers.
G has a Return On Equity of 27.69%. This is amongst the best in the industry. G outperforms 91.14% of its industry peers.
The Return On Invested Capital of G (12.71%) is better than 83.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for G is above the industry average of 9.86%.
The 3 year average ROIC (11.94%) for G is below the current ROIC(12.71%), indicating increased profibility in the last year.
| 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
G's Profit Margin of 14.21% is amongst the best of the industry. G outperforms 92.41% of its industry peers.
In the last couple of years the Profit Margin of G has grown nicely.
With an excellent Operating Margin value of 14.46%, G belongs to the best of the industry, outperforming 81.01% of the companies in the same industry.
G's Operating Margin has improved in the last couple of years.
G has a Gross Margin of 35.41%. This is comparable to the rest of the industry: G outperforms 51.90% 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 | 14.46% | ||
| 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
G has a better debt/assets ratio than last year.
2.2 Solvency
G has an Altman-Z score of 3.53. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.53, G is in line with its industry, outperforming 55.70% of the companies in the same industry.
G has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as G would need 3.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.16, G is in line with its industry, outperforming 59.49% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that G is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, G perfoms like the industry average, outperforming 44.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.19
WACC10.64%
2.3 Liquidity
G has a Current Ratio of 1.85. 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 1.85 is in line compared to the rest of the industry. G outperforms 59.49% of its industry peers.
A Quick Ratio of 1.85 indicates that G should not have too much problems paying its short term obligations.
The Quick ratio of G (1.85) is comparable to the rest of the industry.
| 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.
G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.61% yearly.
Looking at the last year, G shows a small growth in Revenue. The Revenue has grown by 5.22% in the last 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 8.84% 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 7.45% on average per year.
EPS Next Y10.7%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
EPS Next 5Y8.84%
Revenue Next Year6.63%
Revenue Next 2Y6.57%
Revenue Next 3Y6.68%
Revenue Next 5Y7.45%
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
A Price/Earnings ratio of 14.86 indicates a correct valuation of G.
Compared to the rest of the industry, the Price/Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 86.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.58. G is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.17, 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 86.08% of the companies listed in the same industry.
G's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
G's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. G is cheaper than 81.01% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of G indicates a rather cheap valuation: G is cheaper than 86.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
G has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.4
EPS Next 2Y8.67%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.32%.
G's Dividend Yield is rather good when compared to the industry average which is at 2.96. G pays more dividend than 82.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, G's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of G is nicely growing with an annual growth rate of 13.05%!
G has been paying a dividend for over 5 years, so it has already some track record.
G has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.05%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
16.07% 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.
DP16.07%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
GENPACT LTD
NYSE:G (1/24/2025, 8:04:00 PM)
After market: 46.36 0 (0%)46.36
+0.19 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change0.03%
Ins Owners1.09%
Ins Owner Change-8.88%
Market Cap8.18B
Analysts73.33
Price Target48.35 (4.29%)
Short Float %3.15%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.55
Dividend Growth(5Y)13.05%
DP16.07%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-2.08%
Max EPS beat(2)3.69%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-2.08%
Max EPS beat(4)9.11%
EPS beat(8)7
Avg EPS beat(8)2.91%
EPS beat(12)11
Avg EPS beat(12)4.25%
EPS beat(16)15
Avg EPS beat(16)6.68%
Revenue beat(2)2
Avg Revenue beat(2)0.52%
Min Revenue beat(2)0.16%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.53%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)0.46%
PT rev (3m)20.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.74%
EPS NY rev (1m)0%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.75 | ||
| P/FCF | 15.71 | ||
| P/OCF | 13.53 | ||
| P/B | 3.41 | ||
| P/tB | 12.05 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)3.12
EY6.73%
EPS(NY)3.52
Fwd EY7.59%
FCF(TTM)2.95
FCFY6.36%
OCF(TTM)3.43
OCFY7.39%
SpS26.45
BVpS13.58
TBVpS3.85
PEG (NY)1.39
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 27.69% | ||
| ROCE | 16.74% | ||
| ROIC | 12.71% | ||
| ROICexc | 17.07% | ||
| ROICexgc | 39.84% | ||
| OM | 14.46% | ||
| PM (TTM) | 14.21% | ||
| GM | 35.41% | ||
| FCFM | 11.16% |
ROA(3y)9.42%
ROA(5y)8.29%
ROE(3y)22.3%
ROE(5y)20.35%
ROIC(3y)11.94%
ROIC(5y)10.85%
ROICexc(3y)14.86%
ROICexc(5y)13.27%
ROICexgc(3y)40.21%
ROICexgc(5y)34.65%
ROCE(3y)15.96%
ROCE(5y)14.63%
ROICexcg growth 3Y13.69%
ROICexcg growth 5Y6.41%
ROICexc growth 3Y13.79%
ROICexc growth 5Y8.5%
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%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 85.95% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 12.14 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | 78.48% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 3.53 |
F-Score6
WACC10.64%
ROIC/WACC1.19
Cap/Depr(3y)44.23%
Cap/Depr(5y)53.51%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.85%
Profit Quality(3y)117.02%
Profit Quality(5y)123.83%
High Growth Momentum
Growth
EPS 1Y (TTM)9.09%
EPS 3Y12.02%
EPS 5Y10.61%
EPS Q2Q%11.84%
EPS Next Y10.7%
EPS Next 2Y8.67%
EPS Next 3Y8.81%
EPS Next 5Y8.84%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y6.47%
Revenue growth 5Y8.33%
Sales Q2Q%6.62%
Revenue Next Year6.63%
Revenue Next 2Y6.57%
Revenue Next 3Y6.68%
Revenue Next 5Y7.45%
EBIT growth 1Y11.9%
EBIT growth 3Y9.88%
EBIT growth 5Y12.05%
EBIT Next Year12.42%
EBIT Next 3Y10.89%
EBIT Next 5Y12.55%
FCF growth 1Y29.9%
FCF growth 3Y-5%
FCF growth 5Y19.26%
OCF growth 1Y31.1%
OCF growth 3Y-5.65%
OCF growth 5Y7.65%