Genpact
Market Cap
US$8.4b
Last Updated
2021/06/24 04:03 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with questionable track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: G's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.2%
G
3.1%
US IT
0.5%
US Market
1 Year Return
24.1%
G
37.7%
US IT
42.6%
US Market
Return vs Industry: G underperformed the US IT industry which returned 37.7% over the past year.
Return vs Market: G underperformed the US Market which returned 42.6% over the past year.
Shareholder returns
| G | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 3.1% | 0.5% |
| 30 Day | 0.7% | 4.3% | 1.9% |
| 90 Day | 0.9% | 10.6% | 7.9% |
| 1 Year | 25.3%24.1% | 38.8%37.7% | 44.9%42.6% |
| 3 Year | 60.0%55.4% | 103.8%97.1% | 64.4%54.1% |
| 5 Year | 75.1%67.8% | 228.3%205.6% | 128.3%102.7% |
Long-Term 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
Is Genpact (NYSE:G) A Risky Investment?2 weeks ago | Simply Wall St
Genpact Limited (NYSE:G) Passed Our Checks, And It's About To Pay A US$0.11 Dividend3 weeks ago | Simply Wall St
Genpact Limited (NYSE:G) Insiders Have Been SellingValuation
Is Genpact undervalued compared to its fair value and its price relative to the market?
27.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: G ($45.03) is trading above our estimate of fair value ($40.79)
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 (27.2x) compared to the US IT industry average (36x).
PE vs Market: G is poor value based on its PE Ratio (27.2x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: G is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: G is good value based on its PB Ratio (4.8x) compared to the US IT industry average (5x).
Future Growth
How is Genpact forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
14.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: G's forecast earnings growth (14.9% per year) is above the savings rate (2%).
Earnings vs Market: G's earnings (14.9% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: G's earnings are forecast to grow, but not significantly.
Revenue vs Market: G's revenue (9.8% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: G's revenue (9.8% 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 low in 3 years time (18.5%).
Past Performance
How has Genpact performed over the past 5 years?
4.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: G has high quality earnings.
Growing Profit Margin: G's current net profit margins (8.4%) are lower than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: G's earnings have grown by 4.9% per year over the past 5 years.
Accelerating Growth: G's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: G had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the IT industry average (16.3%).
Return on Equity
High ROE: G's Return on Equity (17.9%) is considered low.
Financial Health
How is Genpact's financial position?
Financial Position Analysis
Short Term Liabilities: G's short term assets ($1.7B) exceed its short term liabilities ($843.7M).
Long Term Liabilities: G's short term assets ($1.7B) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: G's debt to equity ratio (96%) is considered high.
Reducing Debt: G's debt to equity ratio has increased from 62.5% to 96% over the past 5 years.
Debt Coverage: G's debt is well covered by operating cash flow (40.5%).
Interest Coverage: G's interest payments on its debt are well covered by EBIT (10x coverage).
Balance Sheet
Dividend
What is Genpact current dividend yield, its reliability and sustainability?
0.95%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: G's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: G's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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 4 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.2%), 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 (15.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Tiger Tyagarajan (59 yo)
10yrs
Tenure
US$5,294,702
Compensation
Mr. Nallicheri Vaidyanathan Tyagarajan, also known as Tiger, has been the Chief Executive Officer and President at Genpact Limited since June 17, 2011 and serves as Chief Executive Officer, President & Dir...
CEO Compensation Analysis
Compensation vs Market: Tiger's total compensation ($USD5.29M) is about average for companies of similar size in the US market ($USD6.60M).
Compensation vs Earnings: Tiger's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: G's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: G's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$8.435b
- Shares outstanding: 187.32m
- Website: https://www.genpact.com
Number of Employees
Location
- Genpact Limited
- Victoria Place
- 5th Floor
- Hamilton
- HM 10
- Bermuda
Listings
Biography
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. It operates in three segments: Banking, Capital Mark...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 04:03 |
| End of Day Share Price | 2021/06/23 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.