Genpact Limited
Genpact Limited Fundamental Analysis
Genpact Limited (G) shows strong financial fundamentals with a PE ratio of 12.08, profit margin of 10.88%, and ROE of 21.81%. The company generates $5.1B in annual revenue with moderate year-over-year growth of 6.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze G's fundamental strength across five key dimensions:
Efficiency Score
WeakG struggles to generate sufficient returns from assets.
Valuation Score
ModerateG shows balanced valuation metrics.
Growth Score
ModerateG shows steady but slowing expansion.
Financial Health Score
ExcellentG maintains a strong and stable balance sheet.
Profitability Score
ModerateG maintains healthy but balanced margins.
Key Financial Metrics
Is G Expensive or Cheap?
P/E Ratio
G trades at 12.08 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, G's PEG of 12.69 indicates potential overvaluation.
Price to Book
The market values Genpact Limited at 2.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.57 times EBITDA. This is generally considered low.
How Well Does G Make Money?
Net Profit Margin
For every $100 in sales, Genpact Limited keeps $10.88 as profit after all expenses.
Operating Margin
Core operations generate 14.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.81 in profit for every $100 of shareholder equity.
ROA
Genpact Limited generates $9.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genpact Limited produces operating cash flow of $815.50M, showing steady but balanced cash generation.
Free Cash Flow
Genpact Limited generates strong free cash flow of $734.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.26 in free cash annually.
FCF Yield
G converts 10.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How G Stacks Against Its Sector Peers
| Metric | G Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.08 | 35.19 | Better (Cheaper) |
| ROE | 21.81% | 1155.00% | Weak |
| Net Margin | 10.88% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.66 | 4.71 | Neutral |
| ROA | 9.46% | -314918.00% (disorted) | Weak |
G outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genpact Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.28%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
79.52%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
53.25%
Industry Style: Growth, Innovation, High Beta
High Growth