GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - New York Stock Exchange, Inc. - BMG3922B1072 - Common Stock - Currency: USD
G gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 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 This makes G very considerable 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.
In the past 5 years G has always been profitable.
In the past 5 years G always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.78%, G belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
G has a better Return On Equity (21.51%) than 86.59% of its industry peers.
With an excellent Return On Invested Capital value of 13.42%, G belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for G is significantly below the industry average of 22.63%.
The last Return On Invested Capital (13.42%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 21.51% | ||
| ROIC | 13.42% |
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 better Profit Margin (10.88%) than 79.27% of its industry peers.
G's Profit Margin has improved in the last couple of years.
The Operating Margin of G (14.96%) is better than 81.71% of its industry peers.
In the last couple of years the Operating Margin of G has grown nicely.
G has a Gross Margin (35.51%) which is comparable to the rest of the industry.
G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 10.88% | ||
| GM | 35.51% |
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.
G has less shares outstanding than it did 1 year ago.
G has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, G has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.00 indicates that G is not in any danger for bankruptcy at the moment.
G's Altman-Z score of 4.00 is fine compared to the rest of the industry. G outperforms 63.41% of its industry peers.
The Debt to FCF ratio of G is 2.07, which is a good value as it means it would take G, 2.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of G (2.07) is better than 68.29% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that G is not too dependend on debt financing.
G has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 4 |
ROIC/WACC1.44
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.45 indicates that G has no problem at all paying its short term obligations.
G has a better Current ratio (2.45) than 78.05% of its industry peers.
A Quick Ratio of 2.45 indicates that G has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.45, G is doing good in the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.57% 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.
The Revenue has been growing slightly by 7.35% in the past year.
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)9.57%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%15.07%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%7.4%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y10.1%
EPS Next 2Y9.47%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue Next Year4.3%
Revenue Next 2Y5.86%
Revenue Next 3Y6.81%
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
G is valuated correctly with a Price/Earnings ratio of 13.12.
G's Price/Earnings ratio is rather cheap when compared to the industry. G is cheaper than 82.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, G is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.32, the valuation of G can be described as reasonable.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
G's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued cheaper than 80.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, G is valued cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.73 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
G's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of G may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)1.4
EPS Next 2Y9.47%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
G's Dividend Yield is rather good when compared to the industry average which is at 2.35. G pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, G is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of G is nicely growing with an annual growth rate of 12.42%!
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
20.99% 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.
DP20.99%
EPS Next 2Y9.47%
EPS Next 3Y10.33%
NYSE:G (5/22/2025, 2:10:50 PM)
43.55
-0.12 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change4.05%
Ins Owners0.98%
Ins Owner Change-7.17%
Market Cap7.62B
Analysts77.78
Price Target57.38 (31.76%)
Short Float %3.36%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP20.99%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.27%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-2.08%
Max EPS beat(4)3.86%
EPS beat(8)7
Avg EPS beat(8)3.37%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)15
Avg EPS beat(16)5.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.59%
PT rev (1m)-4.66%
PT rev (3m)15.5%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-1.96%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-2.6%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.32 | ||
| P/S | 1.57 | ||
| P/FCF | 12.73 | ||
| P/OCF | 11.18 | ||
| P/B | 3.1 | ||
| P/tB | 10.06 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)3.32
EY7.62%
EPS(NY)3.85
Fwd EY8.83%
FCF(TTM)3.42
FCFY7.86%
OCF(TTM)3.9
OCFY8.95%
SpS27.74
BVpS14.03
TBVpS4.33
PEG (NY)1.3
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 21.51% | ||
| ROCE | 17.69% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.57% | ||
| ROICexgc | 29.9% | ||
| OM | 14.96% | ||
| PM (TTM) | 10.88% | ||
| GM | 35.51% | ||
| FCFM | 12.33% |
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%
ROICexcg growth 3Y-10.54%
ROICexcg 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 89.15% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 11.22 | ||
| Cash Conversion | 83.2% | ||
| Profit Quality | 113.4% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 4 |
F-Score7
WACC9.32%
ROIC/WACC1.44
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)9.57%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%15.07%
EPS Next Y10.1%
EPS Next 2Y9.47%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue 1Y (TTM)7.35%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%7.4%
Revenue Next Year4.3%
Revenue Next 2Y5.86%
Revenue Next 3Y6.81%
Revenue Next 5YN/A
EBIT growth 1Y13.26%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year16.79%
EBIT Next 3Y11.11%
EBIT Next 5YN/A
FCF growth 1Y26.25%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y30.07%
OCF growth 3Y-3.94%
OCF growth 5Y7.54%