Genpact
Market Cap
US$7.9b
Last Updated
2020/02/27 01:18 UTC
Data Sources
Company Financials +
Executive Summary
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe.
Rewards
Risk Analysis
Snowflake Analysis
Acceptable track record with moderate growth potential.
Similar Companies
Share Price & News
How has Genpact's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: G has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.1%
G
-10.1%
US IT
-7.6%
US Market
1 Year Return
25.7%
G
21.9%
US IT
10.2%
US Market
Return vs Industry: G exceeded the US IT industry which returned 23.3% over the past year.
Return vs Market: G exceeded the US Market which returned 10.5% over the past year.
Shareholder returns
| G | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -10.1% | -7.6% |
| 30 Day | -5.3% | -5.2% | -4.5% |
| 90 Day | 2.6% | 1.8% | -0.6% |
| 1 Year | 26.8%25.7% | 23.1%21.9% | 12.5%10.2% |
| 3 Year | 76.6%71.8% | 88.7%80.5% | 37.1%28.3% |
| 5 Year | 92.0%86.8% | 125.2%105.3% | 60.8%43.2% |
Price Volatility Vs. Market
How volatile is Genpact's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Patrick Cogny Is The Global Business Leader of Hi-Tech of Genpact Limited (NYSE:G) And They Just Sold 31% Of Their Shares1 week ago | Simply Wall St
Update: Genpact (NYSE:G) Stock Gained 99% In The Last Five Years2 weeks ago | Simply Wall St
Genpact Limited Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?Valuation
Is Genpact undervalued compared to its fair value and its price relative to the market?
26.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: G ($41.65) is trading above our estimate of fair value ($35.25)
Significantly Below Fair Value: G is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: G is good value based on its PE Ratio (26x) compared to the IT industry average (30.6x).
PE vs Market: G is poor value based on its PE Ratio (26x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: G is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: G is overvalued based on its PB Ratio (4.7x) compared to the US IT industry average (3.8x).
Next Steps
Future Growth
How is Genpact forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
12.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: G's forecast earnings growth (12.9% per year) is above the savings rate (1.7%).
Earnings vs Market: G's earnings (12.9% per year) are forecast to grow slower than the US market (13.2% per year).
High Growth Earnings: G's earnings are forecast to grow, but not significantly.
Revenue vs Market: G's revenue (9.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: G's revenue (9.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: G's Return on Equity is forecast to be high in 3 years time (32.7%)
Next Steps
Past Performance
How has Genpact performed over the past 5 years?
7.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: G has high quality earnings.
Growing Profit Margin: G's current net profit margins (8.7%) are lower than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: G's earnings have grown by 7.5% per year over the past 5 years.
Accelerating Growth: G's earnings growth over the past year (8.1%) exceeds its 5-year average (7.5% per year).
Earnings vs Industry: G earnings growth over the past year (8.1%) underperformed the IT industry 12%.
Return on Equity
High ROE: G's Return on Equity (18%) is considered low.
Next Steps
Financial Health
How is Genpact's financial position?
Financial Position Analysis
Short Term Liabilities: G's short term assets ($1.6B) exceed its short term liabilities ($910.2M).
Long Term Liabilities: G's short term assets ($1.6B) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: G's debt to equity ratio (85.4%) is considered high.
Reducing Debt: G's debt to equity ratio has increased from 61.3% to 85.4% over the past 5 years.
Debt Coverage: G's debt is well covered by operating cash flow (29.6%).
Interest Coverage: G's interest payments on its debt are well covered by EBIT (9.9x coverage).
Balance Sheet
Inventory Level: G has a low level of unsold assets or inventory.
Debt Coverage by Assets: G's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is Genpact's current dividend yield, its reliability and sustainability?
0.93%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: G's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: G's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.9%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, G has been paying a dividend for less than 10 years.
Growing Dividend: G's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.2%), G's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: G's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.0yrs
Average management tenure
CEO
Tiger Tyagarajan (58yo)
8.7yrs
Tenure
US$22,299,191
Compensation
Mr. Nallicheri Vaidyanathan Tyagarajan, also known as Tiger, has been the Chief Executive Officer and President at Genpact Limited since June 17, 2011. Mr. Tyagarajan has been Chief Executive Officer and P ...
CEO Compensation Analysis
Compensation vs Market: Tiger's total compensation ($USD22.30M) is above average for companies of similar size in the US market ($USD6.41M).
Compensation vs Earnings: Tiger's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.7yrs | US$22.30m | 0.34% $27.2m | |
| Senior VP & CFO | 5.6yrs | US$2.41m | 0.030% $2.4m | |
| Chief HR Officer & Senior VP | 19.1yrs | US$2.14m | 0.042% $3.4m | |
| Global Business Leader of Hi-Tech | 8.4yrs | US$1.97m | 0.052% $4.2m | |
| Global Business Leader of Capital Markets & IT Services | 11.5yrs | US$1.97m | 0.013% $1.0m | |
| Senior VP & Global Operating Officer | 1.8yrs | no data | 0.047% $3.8m | |
| Chief Information Officer | 0.3yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 1.8yrs | no data | 0.0056% $444.5k | |
| Vice President of Integrated Communications | 0yrs | no data | no data |
7.0yrs
Average Tenure
52yo
Average Age
Experienced Management: G's management team is seasoned and experienced (7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.7yrs | US$22.30m | 0.34% $27.2m | |
| Independent Director | 7.3yrs | US$111.11k | 0.015% $1.2m | |
| Non-Executive Chairman of the Board | 8.9yrs | US$542.01k | 0.054% $4.3m | |
| Independent Director | 7.3yrs | US$196.11k | 0.015% $1.2m | |
| Independent Director | 15.1yrs | US$213.61k | 0.0025% $196.1k | |
| Director | 0.3yrs | no data | no data | |
| Independent Director | 3.9yrs | US$196.11k | 0.0064% $508.0k | |
| Independent Director | 6.8yrs | US$196.11k | 0.019% $1.5m | |
| Independent Director | 1.1yrs | no data | no data | |
| Independent Director | 3.7yrs | US$191.11k | 0.0026% $202.4k |
7.0yrs
Average Tenure
59yo
Average Age
Experienced Board: G's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: G insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Genpact Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Genpact Limited
- Ticker: G
- Exchange: NYSE
- Founded: 1997
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$7.937b
- Shares outstanding: 190.12m
- Website: https://www.genpact.com
Number of Employees
Location
- Genpact Limited
- Victoria Place
- 5th Floor
- Hamilton
- HM 10
- Bermuda
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| G | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 2007 |
| 35G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2007 |
Biography
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. Its finance and accounting services include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; enterprise performance management consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls. It also provides transformation services; core industry operation services; and sourcing and procurement services, such as direct and indirect strategic sourcing, category management, spend analytics, procurement operations, master data management, and other procurement and supply chain advisory services. In addition, the company’s IT services comprise end-user computing support, infrastructure management, application production support, and database management services, as well as business intelligence and data, enterprise resource planning, quality assurance, technology integration, and business intelligence reporting services. It serves banking and financial services, capital markets, insurance, consumer product goods and retail, life sciences and healthcare, infrastructure, manufacturing and services, insurance, and high-tech industries. Genpact Limited has a strategic partnership with Celonis. Genpact Limited was founded in 1997 and is based in Hamilton, Bermuda.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 01:18 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.