GENPACT LTD (NYSE:G) – A Potentially Undervalued Stock with Strong Fundamentals

GENPACT LTD (NYSE:G) was identified by our Decent Value screener as a stock with attractive valuation metrics while maintaining solid profitability, financial health, and growth potential. The company operates in business process management and outsourcing, serving industries such as financial services, healthcare, and manufacturing.

Valuation

GENPACT’s valuation metrics suggest the stock may be trading below its intrinsic value:

• P/E Ratio: At 13.52, it is cheaper than 81.71% of its IT Services industry peers.
• Forward P/E: 11.60, indicating a reasonable earnings outlook compared to the industry average.
• Price/Free Cash Flow: The stock is priced attractively, with 89.02% of industry peers trading at higher multiples.

Financial Health

The company demonstrates strong financial stability:

• Current Ratio: 2.45, well above industry standards, indicating good liquidity.
• Debt/Equity Ratio: 0.49, showing manageable leverage compared to peers.
• Altman-Z Score: 4.06, suggesting low bankruptcy risk.

Profitability

GENPACT maintains high profitability metrics:

• Return on Equity (ROE): 21.51%, outperforming 86.59% of competitors.
• Operating Margin: 14.96%, ranking above 81.71% of the industry.
• Profit Margin: 10.88%, reflecting efficient cost management.

Growth

While growth is moderate, it remains stable:

• Revenue Growth: 7.35% YoY, with a projected 6.31% annual increase.
• EPS Growth: 9.57% YoY, expected to continue at 10.38% annually.

Our Decent Value screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, review the full fundamental report on GENPACT.

Disclaimer

This is not investment advice. The observations are based on current data, but investors should conduct their own research before making decisions.