GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
48.5 USD
+0.59 (+1.23%)
48.5 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. 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 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.
Each year in the past 5 years G has 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 (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.
G's Return On Invested Capital of 14.49% is amongst the best of the industry. G outperforms 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for G is significantly below the industry average of 29.60%.
The last Return On Invested Capital (14.49%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| 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 an excellent Profit Margin value of 11.01%, G belongs to the best of the industry, outperforming 80.68% 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 79.55% 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 35.82%, G perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
G's Gross Margin has been stable in the last couple of years.
| 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.
G has less shares outstanding than it did 1 year ago.
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
G has an Altman-Z score of 3.68. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
G has a Altman-Z score of 3.68. This is in the better half of the industry: G outperforms 62.50% of its industry peers.
The Debt to FCF ratio of G is 1.90, which is an excellent value as it means it would take G, only 1.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, G is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that G is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, G is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.62
WACC8.96%
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 has a Current ratio (1.51) which is comparable to the rest of the 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.
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.
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%.
Measured over the past years, G shows a small growth in Revenue. The Revenue has been growing by 6.25% on average per year.
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
The Earnings Per Share is expected to grow by 11.98% 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 7.05% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.47, the valuation of G can be described as correct.
Based on the Price/Earnings ratio, G is valued cheaper than 84.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. G is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.04 indicates a correct 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 82.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. G is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.04 |
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 78.41% of the companies listed in the same industry.
82.95% 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 | 13.02 | ||
| EV/EBITDA | 10.42 |
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)0.9
PEG (5Y)1.44
EPS Next 2Y12.02%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, G has a reasonable but not impressive dividend return.
G's Dividend Yield is rather good when compared to the industry average which is at 0.43. G pays more dividend than 86.36% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.87, G is paying slightly less dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
As G did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
The dividend of G is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.93%
EPS Next 2Y12.02%
EPS Next 3Y11.98%
48.5
+0.59 (+1.23%)
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 Cap8.36B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target51.6 (6.39%)
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 | 13.47 | ||
| Fwd PE | 12.04 | ||
| P/S | 1.67 | ||
| P/FCF | 13.02 | ||
| P/OCF | 11.46 | ||
| P/B | 3.29 | ||
| P/tB | 12.13 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)3.6
EY7.42%
EPS(NY)4.03
Fwd EY8.31%
FCF(TTM)3.73
FCFY7.68%
OCF(TTM)4.23
OCFY8.72%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.9
PEG (5Y)1.44
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
WACC8.96%
ROIC/WACC1.62
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 7 / 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%.