GENPACT LTD (G) Stock Fundamental Analysis
NYSE:G - BMG3922B1072 - Common Stock
45.34 USD
+0.37 (+0.82%)
45.34 USD
0 (0%)
Taking everything into account, G scores 7 out of 10 in our fundamental rating. G was compared to 85 industry peers in the IT Services industry. G scores excellent on profitability, but there are some minor concerns on its financial health. G scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, G could be worth investigating further for value 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.
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
G has a better Return On Assets (10.14%) than 85.88% of its industry peers.
G has a Return On Equity of 20.81%. This is amongst the best in the industry. G outperforms 84.71% of its industry peers.
The Return On Invested Capital of G (13.94%) is better than 84.71% 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 21.77%.
The last Return On Invested Capital (13.94%) for G is above the 3 year average (12.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 20.81% | ||
| ROIC | 13.94% |
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 Profit Margin of 10.92%. This is in the better half of the industry: G outperforms 78.82% of its industry peers.
G's Profit Margin has improved in the last couple of years.
G's Operating Margin of 14.91% is fine compared to the rest of the industry. G outperforms 78.82% of its industry peers.
G's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.63%, G perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.91% | ||
| PM (TTM) | 10.92% | ||
| GM | 35.63% |
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
The number of shares outstanding for G has been reduced compared to 5 years ago.
G has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.65 indicates that G is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.65, G is doing good in the industry, outperforming 62.35% of the companies in the same industry.
The Debt to FCF ratio of G is 2.34, which is a good value as it means it would take G, 2.34 years of fcf income to pay off all of its debts.
G's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. G outperforms 68.24% of its industry peers.
G has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, G perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.58
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.53 indicates that G should not have too much problems paying its short term obligations.
G has a Current ratio (1.53) which is comparable to the rest of the industry.
A Quick Ratio of 1.53 indicates that G should not have too much problems paying its short term obligations.
G's Quick ratio of 1.53 is in line compared to the rest of the industry. G outperforms 42.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.85%, which is quite good.
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 7.40% 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)14.85%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%22.22%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.65%
3.2 Future
The Earnings Per Share is expected to grow by 11.10% on average over the next years. This is quite good.
G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y12.25%
EPS Next 2Y11.1%
EPS Next 3Y11.1%
EPS Next 5YN/A
Revenue Next Year5.82%
Revenue Next 2Y6.26%
Revenue Next 3Y6.6%
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
Based on the Price/Earnings ratio of 13.03, the valuation of G can be described as correct.
Based on the Price/Earnings ratio, G is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.13, G is valued rather cheaply.
A Price/Forward Earnings ratio of 11.44 indicates a reasonable valuation of G.
Based on the Price/Forward Earnings ratio, G is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (22.76), we can say G is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
G's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. G is cheaper than 76.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 10.24 |
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)1.06
PEG (5Y)1.39
EPS Next 2Y11.1%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, G has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.38, G pays a better dividend. On top of this G pays more dividend than 85.88% of the companies listed in the same industry.
G's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
On average, the dividend of G grows each year by 12.42%, which is quite nice.
G has paid a dividend for at least 10 years, which is a reliable track record.
G has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.42%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
21.00% of the earnings are spent on dividend by G. This is a low number and sustainable payout ratio.
G's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21%
EPS Next 2Y11.1%
EPS Next 3Y11.1%
45.34
+0.37 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change2.77%
Ins Owners0.93%
Ins Owner Change4.48%
Market Cap7.90B
Analysts76.67
Price Target53.36 (17.69%)
Short Float %4.3%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend0.61
Dividend Growth(5Y)12.42%
DP21%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)0.75%
Max EPS beat(2)3.86%
EPS beat(4)4
Avg EPS beat(4)2.89%
Min EPS beat(4)0.75%
Max EPS beat(4)3.86%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)3.14%
EPS beat(16)15
Avg EPS beat(16)4.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)-0.64%
PT rev (1m)0.65%
PT rev (3m)-7.01%
EPS NQ rev (1m)2.01%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)1.74%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.6 | ||
| P/FCF | 14.07 | ||
| P/OCF | 12.17 | ||
| P/B | 3.05 | ||
| P/tB | 11.05 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)3.48
EY7.68%
EPS(NY)3.96
Fwd EY8.74%
FCF(TTM)3.22
FCFY7.11%
OCF(TTM)3.73
OCFY8.22%
SpS28.28
BVpS14.84
TBVpS4.1
PEG (NY)1.06
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 20.81% | ||
| ROCE | 18.77% | ||
| ROIC | 13.94% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 38.18% | ||
| OM | 14.91% | ||
| PM (TTM) | 10.92% | ||
| GM | 35.63% | ||
| FCFM | 11.39% |
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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 96.63% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 78.64% | ||
| Profit Quality | 104.33% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 3.65 |
F-Score7
WACC8.82%
ROIC/WACC1.58
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)14.85%
EPS 3Y9.42%
EPS 5Y9.38%
EPS Q2Q%22.22%
EPS Next Y12.25%
EPS Next 2Y11.1%
EPS Next 3Y11.1%
EPS Next 5YN/A
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.83%
Revenue growth 5Y6.25%
Sales Q2Q%6.65%
Revenue Next Year5.82%
Revenue Next 2Y6.26%
Revenue Next 3Y6.6%
Revenue Next 5YN/A
EBIT growth 1Y11.58%
EBIT growth 3Y11.16%
EBIT growth 5Y9.78%
EBIT Next Year17.96%
EBIT Next 3Y12.12%
EBIT Next 5YN/A
FCF growth 1Y3.62%
FCF growth 3Y-5.94%
FCF growth 5Y10.69%
OCF growth 1Y9.53%
OCF growth 3Y-3.94%
OCF growth 5Y7.54%