NYSE:G

Stock Analysis Report

Executive Summary

Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe.

Snowflake

Fundamentals

Adequate 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


Market Performance


7 Day Return

0.2%

NYSE:G

1.2%

US IT

0.9%

US Market


1 Year Return

34.4%

NYSE:G

22.4%

US IT

0.3%

US Market

G outperformed the IT industry which returned 21.2% over the past year.

G outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

GIndustryMarket
7 Day0.2%1.2%0.9%
30 Day6.7%-1.0%-1.9%
90 Day13.4%7.0%1.6%
1 Year35.8%34.4%23.8%22.4%2.6%0.3%
3 Year75.4%71.3%99.8%91.3%41.0%31.8%
5 Year138.8%133.3%141.6%117.2%55.2%38.0%

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

Valuation

Is Genpact undervalued based on future cash flows and its price relative to the stock market?

27.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Genpact's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Genpact's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Genpact is good value based on earnings compared to the US IT industry average.

Genpact is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Genpact is poor value based on expected growth next year.


Price Based on Value of Assets

Genpact is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Genpact expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Genpact's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

Genpact's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).

Genpact's revenue growth is expected to exceed the United States of America market average.

Genpact's earnings growth is positive but not above the United States of America market average.

Genpact's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Genpact is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Genpact performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Genpact's year on year earnings growth rate has been positive over the past 5 years.

Genpact's 1-year earnings growth is less than its 5-year average (6.4% vs 7.5%)

Genpact's earnings growth has not exceeded the US IT industry average in the past year (6.4% vs 9.8%).


Return on Equity

Genpact has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Genpact used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Genpact's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Genpact's financial position?


Financial Position Analysis

Genpact is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Genpact's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Genpact's level of debt (81%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (68.9% vs 81% today).

Debt is well covered by operating cash flow (32%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

Low level of unsold assets.

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?

0.91%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Genpact before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Genpact's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Genpact's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Genpact is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Genpact is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Genpact's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).


Next Steps

Management

What is the CEO of Genpact's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Tiger Tyagarajan (58yo)

8.2yrs

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

Tiger's remuneration is higher than average for companies of similar size in United States of America.

Tiger's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.1yrs

Average Tenure

52yo

Average Age

The average tenure for the Genpact management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.8yrs

Average Tenure

59yo

Average Age

The tenure for the Genpact board of directors is about average.


Insider Trading

Genpact individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$38,17605 Jun 19
Heather White
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,058
Max PriceUS$36.08
SellUS$54,008,01428 May 19
Twickenham Investment Private Ltd.
EntityCompany
Shares1,499,806
Max PriceUS$36.01
SellUS$306,091,98628 May 19
Bain Capital, LP
EntityCompany
Shares8,500,194
Max PriceUS$36.01
SellUS$252,98521 Feb 19
Heather White
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,680
Max PriceUS$32.94
SellUS$1,658,71121 Feb 19
Edward Fitzpatrick
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares50,213
Max PriceUS$33.03
SellUS$273,833,75020 Feb 19
Bain Capital, LP
EntityCompany
Shares8,500,194
Max PriceUS$32.22
SellUS$48,316,25019 Feb 19
Twickenham Investment Private Ltd.
EntityCompany
Shares1,499,806
Max PriceUS$32.22

Ownership Breakdown


Management Team

  • Tiger Tyagarajan (58yo)

    President

    • Tenure: 8.2yrs
    • Compensation: US$22.30m
  • Monty Singh (54yo)

    Global Business Leader of Capital Markets & IT Services

    • Tenure: 11.0yrs
    • Compensation: US$1.97m
  • Patrick Cogny (52yo)

    Global Business Leader of Hi-Tech

    • Tenure: 7.9yrs
    • Compensation: US$1.97m
  • Piyush Mehta (50yo)

    Chief HR Officer & Senior VP

    • Tenure: 18.6yrs
    • Compensation: US$2.14m
  • Stacy Simpson

    Chief Marketing Officer & Senior VP

    • Tenure: 2.9yrs
  • Darren Saumur (51yo)

    Senior VP & Global Operating Officer

    • Tenure: 1.3yrs
  • Roger Sachs

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Heather White (46yo)

    Senior VP

    • Tenure: 1.3yrs
  • Ed Fitzpatrick (53yo)

    Senior VP & CFO

    • Tenure: 5.1yrs
    • Compensation: US$2.41m
  • Ezra Baylin

    Head of Corporate Development and Mergers & Acquisitions

    • Tenure: 3.6yrs

Board Members

  • Mark Nunnelly (60yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$111.11k
  • Bob Scott (73yo)

    Non-Executive Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$542.01k
  • Mark Verdi (52yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$196.11k
  • Jim Madden (57yo)

    Director

    • Tenure: 14.6yrs
    • Compensation: US$213.61k
  • CeCe Morken (61yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$196.11k
  • Tiger Tyagarajan (58yo)

    President

    • Tenure: 8.2yrs
    • Compensation: US$22.30m
  • Laura Conigliaro (74yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$196.11k
  • Ajay Agrawal (49yo)

    Director

    • Tenure: 0.6yrs
  • David Humphrey (42yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$173.61k
  • Carol Lindstrom (65yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$191.11k

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$7.830b
  • Shares outstanding: 190.50m
  • Website: https://www.genpact.com

Number of Employees


Location

  • Genpact Limited
  • Canon’s Court
  • 22 Victoria Street
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2007
35GDB (Deutsche Boerse AG)YesCommon StockDEEURAug 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:07
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.