GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - New York Stock Exchange, Inc. - BMG3922B1072 - Common Stock - Currency: USD
Overall G gets a fundamental rating of 7 out of 10. We evaluated G 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 With these ratings, G could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
G had positive earnings in the past year.
In the past year G had a positive cash flow from operations.
Each year in the past 5 years G has been profitable.
G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.78%, G belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
G's Return On Equity of 21.51% is amongst the best of the industry. G outperforms 86.59% of its industry peers.
G's Return On Invested Capital of 13.42% is amongst the best of the industry. G outperforms 82.93% 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 21.60%.
The 3 year average ROIC (12.82%) for G is below the current ROIC(13.42%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 10.88%, G is in the better half of the industry, outperforming 78.05% 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 14.96%. This is amongst the best in the industry. G outperforms 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 in line with its industry peers.
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 | 14.96% | ||
| 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
G has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for G has been reduced compared to 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 4.08. This indicates that G is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.08, G is doing good in the industry, outperforming 63.41% of the companies in the same industry.
G has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as G would need 2.07 years to pay back of all of its debts.
G's Debt to FCF ratio of 2.07 is fine compared to the rest of the industry. G outperforms 70.73% of its industry peers.
G has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, G perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.46
WACC9.21%
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 75.61% of its industry peers.
A Quick Ratio of 2.45 indicates that G has no problem at all paying its short term obligations.
G has a Quick ratio of 2.45. This is in the better half of the industry: G outperforms 75.61% of its industry peers.
| 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.
Looking at the last year, G shows a small growth in Revenue. The Revenue has grown by 7.35% in the last year.
The Revenue has been growing slightly by 6.25% on average over the past years.
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
G is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.38% yearly.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y10.34%
EPS Next 2Y9.81%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y5.38%
Revenue Next 3Y6.31%
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.
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
With a Price/Earnings ratio of 13.67, G is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 80.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, G is valued rather cheaply.
G is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of G indicates a rather cheap valuation: G is cheaper than 84.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
87.80% 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 | 13.26 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
The 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)1.32
PEG (5Y)1.46
EPS Next 2Y9.81%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
G has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 2.46, G pays a better dividend. On top of this G pays more dividend than 84.15% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, G is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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 20.99% of its income as dividend. This is a sustainable payout ratio.
G's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.99%
EPS Next 2Y9.81%
EPS Next 3Y10.38%
45.37
-0.09 (-0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.66%
Inst Owner Change0%
Ins Owners0.93%
Ins Owner Change0.91%
Market Cap7.93B
Analysts77.65
Price Target52.22 (15.1%)
Short Float %4%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)-1.38%
PT rev (3m)-13.22%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.64 | ||
| P/FCF | 13.26 | ||
| P/OCF | 11.64 | ||
| P/B | 3.23 | ||
| P/tB | 10.48 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)3.32
EY7.32%
EPS(NY)3.87
Fwd EY8.53%
FCF(TTM)3.42
FCFY7.54%
OCF(TTM)3.9
OCFY8.59%
SpS27.74
BVpS14.03
TBVpS4.33
PEG (NY)1.32
PEG (5Y)1.46
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 | 4.08 |
F-Score7
WACC9.21%
ROIC/WACC1.46
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 Y10.34%
EPS Next 2Y9.81%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.35%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%7.4%
Revenue Next Year4.5%
Revenue Next 2Y5.38%
Revenue Next 3Y6.31%
Revenue Next 5YN/A
EBIT growth 1Y13.26%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year14.27%
EBIT Next 3Y10.67%
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%