Genpact LTD (G) stock analysis

P/E below its 5-year median

Genpact's P/E of 12.7 is below its own 5-year median of 15.0.

P/E below the industry

Genpact's P/E of 12.7 is below the Management and Public Relations Services median of 21.9.

EV/EBITDA below its 5-year median

Genpact's EV/EBITDA of 10.0 is below its 5-year median of 12.1.

P/B above the industry

Genpact's price-to-book of 2.70 is above the Management and Public Relations Services median of 2.31.

Trading below fair value

The share price of $43.60 is below our fair value estimate of $55.36.

Margin of safety over 20%

The price is 21.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 6.7% over the last twelve months, against a 5-year average of 12.4% a year.

Growing slower than the industry

Revenue grew 6.7% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance raised

Genpact raised its full year 2026 Adjusted diluted earnings per share growth outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 36.9% over the last twelve months, against 35.8% a year earlier.

Return on equity over 15%

Return on equity was 22.4% over the last twelve months and averaged 22.9% over five years.

Return on capital over 10%

Return on invested capital was 19.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Genpact's return on equity of 22.4% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 12.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.0% over the last twelve months, against a 5-year average of 10.6%.

Net margin above the industry

Genpact's net margin of 11.0% is above the Management and Public Relations Services median of 0.2%.

High debt

Debt is 43.3% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 86.7% five years ago to 43.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.5% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.95 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.55; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Genpact paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Genpact yields 1.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 21.0% of net income.

Covered by free cash flow

Dividends take 34.7% of free cash flow.