company background image
G

GenpactNYSE:G Stock Report

Market Cap

US$9.2b

7D

-0.08%

1Y

28.7%

Updated

26 Sep, 2021

Data

Company Financials +
G fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends2/6

G Overview

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

Genpact Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Genpact
Historical stock prices
Current Share PriceUS$49.09
52 Week HighUS$33.91
52 Week LowUS$52.75
Beta1.42
1 Month Change-5.52%
3 Month Change8.20%
1 Year Change28.71%
3 Year Change60.37%
5 Year Change104.97%
Change since IPO193.08%

Recent News & Updates

Shareholder Returns

GUS ITUS Market
7D-0.08%1.4%0.1%
1Y28.7%27.9%35.3%

Return vs Industry: G matched the US IT industry which returned 27.9% over the past year.

Return vs Market: G underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is G's price volatile compared to industry and market?
G volatility
G Beta1.42
Industry Beta1.18
Market Beta1

Stable Share Price: G is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: G's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997104,000Tiger Tyagarajanhttps://www.genpact.com

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 Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services. The company’s 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; financial planning and analysis consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls.

Genpact Fundamentals Summary

How do Genpact's earnings and revenue compare to its market cap?
G fundamental statistics
Market CapUS$9.22b
Earnings (TTM)US$354.39m
Revenue (TTM)US$3.82b

26.0x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
G income statement (TTM)
RevenueUS$3.82b
Cost of RevenueUS$2.44b
Gross ProfitUS$1.38b
ExpensesUS$1.03b
EarningsUS$354.39m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin36.18%
Net Profit Margin9.28%
Debt/Equity Ratio90.9%

How did G perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Genpact undervalued compared to its fair value and its price relative to the market?

26.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: G ($49.09) is trading above our estimate of fair value ($38.24)

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 US IT industry average (34.9x).

PE vs Market: G is poor value based on its PE Ratio (26x) compared to the US market (17.9x).


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 good value based on its PB Ratio (5x) compared to the US IT industry average (5.2x).


Future Growth

How is Genpact forecast to perform in the next 1 to 3 years based on estimates from 10 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 (2%).

Earnings vs Market: G's earnings (12.9% per year) are forecast to grow slower than the US market (15% 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 slower than the US market (9.8% 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 (24.3%)


Past Performance

How has Genpact performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G has high quality earnings.

Growing Profit Margin: G's current net profit margins (9.3%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: G's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: G's earnings growth over the past year (11.4%) exceeds its 5-year average (5.5% per year).

Earnings vs Industry: G earnings growth over the past year (11.4%) underperformed the IT industry 28%.


Return on Equity

High ROE: G's Return on Equity (19.3%) is considered low.


Financial Health

How is Genpact's financial position?


Financial Position Analysis

Short Term Liabilities: G's short term assets ($1.9B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: G's short term assets ($1.9B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: G's debt to equity ratio (90.9%) is considered high.

Reducing Debt: G's debt to equity ratio has increased from 60.4% to 90.9% over the past 5 years.

Debt Coverage: G's debt is well covered by operating cash flow (38.8%).

Interest Coverage: G's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Dividend

What is Genpact current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: G's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: G's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), 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 (15.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Tiger Tyagarajan (60 yo)

10.25yrs

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 ($USD5.29M) is about average for companies of similar size in the US market ($USD6.40M).

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 (3.4 years average tenure).


Board Members

Experienced Board: G's board of directors are considered experienced (5.3 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 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$9.216b
  • Shares outstanding: 187.74m
  • Website: https://www.genpact.com

Number of Employees


Location

  • Genpact Limited
  • Victoria Place
  • 5th Floor
  • Hamilton
  • HM 10
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:09
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.