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 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

GIndustryMarket
7 Day-5.1%-10.1%-7.6%
30 Day-5.3%-5.2%-4.5%
90 Day2.6%1.8%-0.6%
1 Year26.8%25.7%23.1%21.9%12.5%10.2%
3 Year76.6%71.8%88.7%80.5%37.1%28.3%
5 Year92.0%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

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

TodayFeb 27 2020Ex Dividend DateMar 06 2020Dividend Pay DateMar 18 202012 days from Ex DividendBuy in the next 8 days to receive upcoming dividend

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

NamePositionTenureCompensationOwnership
Nallicheri Tyagarajan
President8.7yrsUS$22.30m0.34% $27.2m
Edward Fitzpatrick
Senior VP & CFO5.6yrsUS$2.41m0.030% $2.4m
Piyush Mehta
Chief HR Officer & Senior VP19.1yrsUS$2.14m0.042% $3.4m
Patrick Cogny
Global Business Leader of Hi-Tech8.4yrsUS$1.97m0.052% $4.2m
Arvinder Singh
Global Business Leader of Capital Markets & IT Services11.5yrsUS$1.97m0.013% $1.0m
Darren Saumur
Senior VP & Global Operating Officer1.8yrsno data0.047% $3.8m
Vidya Rao
Chief Information Officer0.3yrsno datano data
Roger Sachs
Head of Investor Relations0yrsno datano data
Heather White
Senior VP1.8yrsno data0.0056% $444.5k
Michael Schneider
Vice President of Integrated Communications0yrsno datano data

7.0yrs

Average Tenure

52yo

Average Age

Experienced Management: G's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nallicheri Tyagarajan
President8.7yrsUS$22.30m0.34% $27.2m
Mark Nunnelly
Independent Director7.3yrsUS$111.11k0.015% $1.2m
Robert Scott
Non-Executive Chairman of the Board8.9yrsUS$542.01k0.054% $4.3m
Mark Verdi
Independent Director7.3yrsUS$196.11k0.015% $1.2m
James Madden
Independent Director15.1yrsUS$213.61k0.0025% $196.1k
Stacey Cartwright
Director0.3yrsno datano data
CeCelia Morken
Independent Director3.9yrsUS$196.11k0.0064% $508.0k
Laura Conigliaro
Independent Director6.8yrsUS$196.11k0.019% $1.5m
Ajay Agrawal
Independent Director1.1yrsno datano data
Carol Lindstrom
Independent Director3.7yrsUS$191.11k0.0026% $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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:18
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.