GENPACT LTD (G) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:G - BMG3922B1072 - Common Stock
44.06 USD
-0.15 (-0.34%)
44.06 USD
0 (0%)
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 86 industry peers in the IT Services industry. G scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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 and quality investing.
1. Profitability
1.1 Basic Checks
In the past year G was profitable.
G had a positive operating cash flow in the past year.
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 10.28%, G belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
G has a better Return On Equity (21.67%) than 84.88% of its industry peers.
G's Return On Invested Capital of 14.49% is amongst the best of the industry. G outperforms 86.05% 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 29.77%.
The 3 year average ROIC (12.82%) for G is below the current ROIC(14.49%), indicating increased profibility in the last year.
| 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
G has a better Profit Margin (11.01%) than 80.23% of its industry peers.
G's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.87%, G is doing good in the industry, outperforming 79.07% of the companies in the same industry.
In the last couple of years the Operating Margin of G has grown nicely.
G has a Gross Margin (35.82%) which is comparable to the rest of the industry.
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 | 14.87% | ||
| 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.
Compared to 1 year ago, G has less shares outstanding
G has less shares outstanding than it did 5 years ago.
The debt/assets ratio for G has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.54 indicates that G is not in any danger for bankruptcy at the moment.
G's Altman-Z score of 3.54 is fine compared to the rest of the industry. G outperforms 63.95% of its industry peers.
G has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
G's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. G outperforms 72.09% of its industry peers.
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 53.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.7
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.51 indicates that G should not have too much problems paying its short term obligations.
G has a Current ratio (1.51) which is in line with its industry peers.
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.
G has a Quick ratio (1.51) which is comparable to the rest of the 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
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.38%, which is quite good.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.39% in the past year.
G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.25% yearly.
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
Based on estimates for the next years, G will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 6.61% on average per year.
EPS Next Y12.71%
EPS Next 2Y11.07%
EPS Next 3Y11.07%
EPS Next 5YN/A
Revenue Next Year5.82%
Revenue Next 2Y6.27%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
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.
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
The Price/Earnings ratio is 12.24, which 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 84.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, G is valued rather cheaply.
G is valuated reasonably with a Price/Forward Earnings ratio of 11.13.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 84.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.13 |
4.2 Price Multiples
77.91% of the companies in the same industry are more expensive than G, based on the Enterprise Value to EBITDA ratio.
83.72% 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 | 11.83 | ||
| EV/EBITDA | 9.66 |
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)0.96
PEG (5Y)1.3
EPS Next 2Y11.07%
EPS Next 3Y11.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, G has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.06, G pays a better dividend. On top of this G pays more dividend than 86.05% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, 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
G pays out 20.93% of its income as dividend. This is a 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 2Y11.07%
EPS Next 3Y11.07%
44.06
-0.15 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner Change0.48%
Ins Owners0.87%
Ins Owner Change-3.63%
Market Cap7.60B
Revenue(TTM)5.01B
Net Income(TTM)551.32M
Analysts75.79
Price Target50.9 (15.52%)
Short Float %4.68%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-4.24%
PT rev (3m)-2.95%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)1.52%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.13 | ||
| P/S | 1.52 | ||
| P/FCF | 11.83 | ||
| P/OCF | 10.41 | ||
| P/B | 2.99 | ||
| P/tB | 11.02 | ||
| EV/EBITDA | 9.66 |
EPS(TTM)3.6
EY8.17%
EPS(NY)3.96
Fwd EY8.99%
FCF(TTM)3.73
FCFY8.46%
OCF(TTM)4.23
OCFY9.6%
SpS29.05
BVpS14.76
TBVpS4
PEG (NY)0.96
PEG (5Y)1.3
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 | 3.54 |
F-Score7
WACC8.53%
ROIC/WACC1.7
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 Y12.71%
EPS Next 2Y11.07%
EPS Next 3Y11.07%
EPS Next 5YN/A
Revenue 1Y (TTM)7.39%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.63%
Revenue Next Year5.82%
Revenue Next 2Y6.27%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y10.42%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year18.78%
EBIT Next 3Y12.58%
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 8 / 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 12.71% 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%.