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. G has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on G. 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.
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 Return On Assets of 10.78%. This is amongst the best in the industry. G outperforms 86.59% of its industry peers.
The Return On Equity of G (21.51%) is better than 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 21.64%.
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
The Profit Margin of G (10.88%) is better than 78.05% of its industry peers.
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 of 35.51%. This is comparable to the rest of the industry: G outperforms 50.00% of 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.
G has less shares outstanding than it did 1 year ago.
The number of shares outstanding for G has been reduced compared to 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.
With a decent Altman-Z score value of 4.00, G is doing good in the industry, outperforming 64.63% 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.
Looking at the Debt to FCF ratio, with a value of 2.07, G is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
G has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
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/WACC1.47
WACC9.15%
2.3 Liquidity
G has a Current Ratio of 2.45. This indicates that G is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.45, G is doing good in the industry, outperforming 75.61% of the companies in the same industry.
G has a Quick Ratio of 2.45. This indicates that G is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.45, G is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
G shows a small growth in Revenue. In the last year, the Revenue has grown by 7.35%.
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
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y10.1%
EPS Next 2Y9.47%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue Next Year4.13%
Revenue Next 2Y4.9%
Revenue Next 3Y5.98%
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 12.93.
G's Price/Earnings ratio is rather cheap when compared to the industry. G is cheaper than 87.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, G is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of G can be described as reasonable.
86.59% of the companies in the same industry are more expensive than G, based on the Price/Forward Earnings ratio.
G's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, G is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
90.24% 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 | 12.55 | ||
| EV/EBITDA | 10.12 |
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)1.28
PEG (5Y)1.38
EPS Next 2Y9.47%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, G has a reasonable but not impressive dividend return.
G's Dividend Yield is rather good when compared to the industry average which is at 2.52. G pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, G is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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.
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 2Y9.47%
EPS Next 3Y10.33%
42.92
-0.67 (-1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change4.06%
Ins Owners0.98%
Ins Owner Change-5.34%
Market Cap7.51B
Analysts78.82
Price Target52.96 (23.39%)
Short Float %3.41%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-7.7%
PT rev (3m)-12.01%
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)-2.12%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.55 | ||
| P/FCF | 12.55 | ||
| P/OCF | 11.01 | ||
| P/B | 3.06 | ||
| P/tB | 9.91 | ||
| EV/EBITDA | 10.12 |
EPS(TTM)3.32
EY7.74%
EPS(NY)3.85
Fwd EY8.96%
FCF(TTM)3.42
FCFY7.97%
OCF(TTM)3.9
OCFY9.08%
SpS27.74
BVpS14.03
TBVpS4.33
PEG (NY)1.28
PEG (5Y)1.38
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
WACC9.15%
ROIC/WACC1.47
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 Year4.13%
Revenue Next 2Y4.9%
Revenue Next 3Y5.98%
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%