In a market where value is scarce, NYSE:G offers a refreshing opportunity with its solid fundamentals.

GENPACT LTD (NYSE:G) has caught the attention of our stock screener as a great value stock. NYSE:G excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Assessing Valuation Metrics for NYSE:G

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:G has received a 7 out of 10:

• A Price/Earnings ratio of 11.06 indicates a reasonable valuation of G.
• 89.29% of the companies in the same industry are more expensive than G, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 26.48. G is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 10.73, the valuation of G can be described as very reasonable.
• G's Price/Forward Earnings ratio is rather cheap when compared to the industry. G is cheaper than 89.29% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 22.79. G is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than 79.76% of the companies in the same industry.
• 83.33% of the companies in the same industry are more expensive than G, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of G may justify a higher PE ratio.

Exploring NYSE:G's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:G, the assigned 8 is noteworthy for profitability:

• G's Return On Assets of 13.14% is amongst the best of the industry. G outperforms 91.67% of its industry peers.
• G has a Return On Equity of 28.08%. This is amongst the best in the industry. G outperforms 91.67% of its industry peers.
• G has a Return On Invested Capital of 13.61%. This is amongst the best in the industry. G outperforms 84.52% of its industry peers.
• The 3 year average ROIC (11.94%) for G is below the current ROIC(13.61%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 14.10%, G belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
• In the last couple of years the Profit Margin of G has grown nicely.
• The Operating Margin of G (14.00%) is better than 76.19% of its industry peers.
• G's Operating Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:G, the assigned 6 for health provides valuable insights:

• G has an Altman-Z score of 3.22. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
• G's Altman-Z score of 3.22 is fine compared to the rest of the industry. G outperforms 61.90% of its industry peers.
• G has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as G would need 2.97 years to pay back of all of its debts.
• The Debt to FCF ratio of G (2.97) is better than 61.90% of its industry peers.
• G has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:G has achieved a 4 out of 10:

• G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, 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.
• G shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.33% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of G for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.