GENPACT LTD (G)
BMG3922B1072 - Common Stock
Taking everything into account, G scores 6 out of 10 in our fundamental rating. G was compared to 86 industry peers in the IT Services industry. While G belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. G is valued quite cheap, while showing a decent growth score. This is a good combination! This makes G very considerable for value 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.
G had positive earnings in each of the past 5 years.
G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
G has a better Return On Assets (13.14%) than 91.67% of its industry peers.
The Return On Equity of G (28.08%) is better than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.61%, G belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for G is in line with the industry average of 13.16%.
The 3 year average ROIC (11.94%) for G is below the current ROIC(13.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 28.08% | ||
| ROIC | 13.61% |
ROA(3y)9.42%
ROA(5y)8.29%
ROE(3y)22.3%
ROE(5y)20.35%
ROIC(3y)11.94%
ROIC(5y)10.85%
1.3 Margins
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.
G has a Operating Margin of 14.00%. This is in the better half of the industry: G outperforms 77.38% of its industry peers.
G's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.08%, G is in line with its industry, outperforming 51.19% of the companies in the same 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% | ||
| PM (TTM) | 14.1% | ||
| GM | 35.08% |
OM growth 3Y3.2%
OM growth 5Y3.44%
PM growth 3Y19.27%
PM growth 5Y8.45%
GM growth 3Y0.26%
GM growth 5Y-0.49%
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
G has an Altman-Z score of 3.15. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
G has a better Altman-Z score (3.15) than 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.
Looking at the Debt to FCF ratio, with a value of 2.97, G is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that G is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, G perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.35
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.44 indicates that G should not have too much problems paying its short term obligations.
With a Current ratio value of 1.44, G perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
G has a Quick Ratio of 1.44. This is a normal value and indicates that G is financially healthy and should not expect problems in meeting its short term obligations.
G's Quick ratio of 1.44 is in line compared to the rest of the industry. G outperforms 48.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.36% 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 10.61% yearly.
Looking at the last year, G shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.
EPS 1Y (TTM)8.36%
EPS 3Y12.02%
EPS 5Y10.61%
EPS growth Q2Q17.14%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.47%
Revenue growth 5Y8.33%
Revenue growth Q2Q3.97%
3.2 Future
Based on estimates for the next years, G will show a small growth in Earnings Per Share. The EPS will grow by 7.22% on average per year.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y3.02%
EPS Next 2Y6.11%
EPS Next 3Y7.22%
EPS Next 5YN/A
Revenue Next Year3.19%
Revenue Next 2Y4.66%
Revenue Next 3Y5.62%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.52 indicates a reasonable valuation of G.
G's Price/Earnings ratio is rather cheap when compared to the industry. G is cheaper than 86.90% of the companies in the same industry.
G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
G is valuated reasonably with a Price/Forward Earnings ratio of 10.21.
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 20.88. G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 10.21 |
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 79.76% of the companies listed in the same industry.
80.95% 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 | 13.08 | ||
| EV/EBITDA | 8.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of G may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)0.99
EPS Next 2Y6.11%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 2.83, G pays a better dividend. On top of this G pays more dividend than 89.29% of the companies listed in the same industry.
G's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of G is nicely growing with an annual growth rate of 13.05%!
G has been paying a dividend for over 5 years, so it has already some track record.
As G did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.05%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
G pays out 15.84% 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.
DP15.84%
EPS Next 2Y6.11%
EPS Next 3Y7.22%
GENPACT LTD
NYSE:G (5/3/2024, 7:04:00 PM)
After market: 31.34 0 (0%)31.34
+0.03 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 10.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.49
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 28.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14% | ||
| PM (TTM) | 14.1% | ||
| GM | 35.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.36%
EPS 3Y12.02%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y