Genpact Ltd

G

Services-Management Consulting Services

Mkt Cap

$5.983B

PE

9.32

Debt

$1.67B

Cash

$478.4M

EV

$7.174B

FCF

$432.5M

Market Cap

$5.983B

P/E Ratio

9.32

Debt

$1.67B

Cash

$478.4M

EV

$7.174B

FCF

$432.5M

Charts data: {"Earnings":[{"time":"2014-12-30","value":192002000},{"time":"2015-12-30","value":239817000},{"time":"2016-12-30","value":267547000},{"time":"2017-12-30","value":260841000},{"time":"2018-12-30","value":281258000},{"time":"2019-12-30","value":304881000},{"time":"2020-12-30","value":308276000},{"time":"2021-12-30","value":369448000},{"time":"2022-12-30","value":353404000},{"time":"2023-12-30","value":631255000}],"Sales":[{"time":"2014-12-30","value":2279438000},{"time":"2015-12-30","value":2461044000},{"time":"2016-12-30","value":2570756000},{"time":"2017-12-30","value":2736929000},{"time":"2018-12-30","value":3000790000},{"time":"2019-12-30","value":3520543000},{"time":"2020-12-30","value":3709377000},{"time":"2021-12-30","value":4022211000},{"time":"2022-12-30","value":4371172000},{"time":"2023-12-30","value":4476888000}],"Net Margins":[{"time":"2014-12-30","value":0.08423216599881199},{"time":"2015-12-30","value":0.09744523056068888},{"time":"2016-12-30","value":0.10407327649920879},{"time":"2017-12-30","value":0.09530426255120246},{"time":"2018-12-30","value":0.0937279849639595},{"time":"2019-12-30","value":0.08660056133386242},{"time":"2020-12-30","value":0.08310721719577169},{"time":"2021-12-30","value":0.09185196897925046},{"time":"2022-12-30","value":0.08084879753073089},{"time":"2023-12-30","value":0.14100308071142276}],"Assets":[{"time":"2014-12-30","value":2742537000},{"time":"2015-12-30","value":2793489000},{"time":"2016-12-30","value":2885880000},{"time":"2017-12-30","value":3449621000},{"time":"2018-12-30","value":3529445000},{"time":"2019-12-30","value":4454184000},{"time":"2020-12-30","value":4873513000},{"time":"2021-12-30","value":4975269000},{"time":"2022-12-30","value":4588814000},{"time":"2023-12-30","value":4805713000}],"Stockholders Equity":[{"time":"2014-12-30","value":1285136000},{"time":"2015-12-30","value":1304356000},{"time":"2016-12-30","value":1286648000},{"time":"2017-12-30","value":1424044000},{"time":"2018-12-30","value":1404182000},{"time":"2019-12-30","value":1689171000},{"time":"2020-12-30","value":1834229000},{"time":"2021-12-30","value":1897133000},{"time":"2022-12-30","value":1826158000},{"time":"2023-12-30","value":2248392000}],"ROE":[{"time":"2014-12-30","value":0.14940208662740753},{"time":"2015-12-30","value":0.183858547819767},{"time":"2016-12-30","value":0.20794109966362206},{"time":"2017-12-30","value":0.1831691998280952},{"time":"2018-12-30","value":0.20030024597950977},{"time":"2019-12-30","value":0.18049149553242388},{"time":"2020-12-30","value":0.16806843638389754},{"time":"2021-12-30","value":0.1947401684541885},{"time":"2022-12-30","value":0.19352323292946175},{"time":"2023-12-30","value":0.2807584264665592}],"ROA":[{"time":"2014-12-30","value":0.10721131565408233},{"time":"2015-12-30","value":0.12307941788924173},{"time":"2016-12-30","value":0.12501351407542932},{"time":"2017-12-30","value":0.10582119021191023},{"time":"2018-12-30","value":0.11631857133345327},{"time":"2019-12-30","value":0.10107620161178793},{"time":"2020-12-30","value":0.09371494443535905},{"time":"2021-12-30","value":0.10882647752312488},{"time":"2022-12-30","value":0.10942936453732925},{"time":"2023-12-30","value":0.13127230028093645}]}

Genpact Limited provides business process outsourcing and information technology (IT) services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The company offers CFO advisory services; and environmental, social, and governance (ESG) services, such as data management, carbon accounting, human rights assessment, sustainability diligence, and ESG reporting. It also provides finance and accounting services, which 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. In addition, the company provides supply chain advisory services, and after-sales services; sourcing and procurement services comprising direct and indirect strategic sourcing, category management, spend analytics, procurement operation, and master data management; and sales and commercial services, including campaign, order, and dispute management, lead generation, pricing, and promotion optimization. Further, it offers IT services, which comprise end-user computing support, infrastructure management; and transformation services that include digital solutions, consulting services, and analytics services and solutions. The company was founded in 1997 and is based in Hamilton, Bermuda.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Genpact Ltd

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$432.5M	$478.5M	$526.4M	$575.8M	$626.3M	$677.2M	$728.1M	$778.1M	$826.8M	$873.3M	$917M	$9.17B
DCF		$416.1M	$398M	$378.6M	$358.1M	$336.7M	$314.8M	$292.5M	$270.3M	$248.3M	$226.7M	$2.267B
Value	$5.507B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.7%

Earnings Stability 80%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	9.7%	10%	9.5%	9.4%	8.7%	8.3%	9.2%	8.1%	14%	14%
ROA	12%	13%	11%	12%	10%	9.4%	11%	11%	13%	14%
ROE	18%	21%	18%	20%	18%	17%	19%	19%	28%	28%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.62%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.65%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.01%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.33%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +20.3%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.34%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.07	3.49	3.90	5.12	4.09	3.09	3.18	3.63	3.88	3.86
Debt Equity	0.63	0.70	0.83	0.93	0.85	0.87	1.07	0.78	0.75	0.73
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.86.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.21.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	8.2%	8.3%	6.5%	2.4%	-0.16%
Net Income	13%	18%	27%	79%	3.4%
Stockholders Equity	8.3%	9.9%	7%	23%	1.2%
FCF	7.8%	11%	-5.4%	11%	-1.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.33%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.16%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +17.55%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.42%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.87%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.25%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.33%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.58%.