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Genpact Limited (G)
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Upturn Advisory Summary
12/11/2024: G (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit 15.71% | Avg. Invested days 50 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 2.0 | Stock Returns Performance 2.0 |
Profits based on simulation | Last Close 12/11/2024 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.57B USD | Price to earnings Ratio 11.8 | 1Y Target Price 47.4 |
Price to earnings Ratio 11.8 | 1Y Target Price 47.4 | ||
Volume (30-day avg) 1549490 | Beta 1.14 | 52 Weeks Range 29.87 - 47.82 | Updated Date 01/1/2025 |
52 Weeks Range 29.87 - 47.82 | Updated Date 01/1/2025 | ||
Dividends yield (FY) 1.42% | Basic EPS (TTM) 3.64 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 14.22% | Operating Margin (TTM) 14.88% |
Management Effectiveness
Return on Assets (TTM) 8.46% | Return on Equity (TTM) 30.11% |
Valuation
Trailing PE 11.8 | Forward PE 18.32 | Enterprise Value 8410000503 | Price to Sales(TTM) 1.62 |
Enterprise Value 8410000503 | Price to Sales(TTM) 1.62 | ||
Enterprise Value to Revenue 1.8 | Enterprise Value to EBITDA 10.17 | Shares Outstanding 176360992 | Shares Floating 162038970 |
Shares Outstanding 176360992 | Shares Floating 162038970 | ||
Percent Insiders 1.06 | Percent Institutions 103.65 |
AI Summary
Genpact Limited: A Comprehensive Overview
Company Profile
History and Background
Genpact Limited (NYSE: G) is a global professional services firm headquartered in New York City. Founded in 1997 as a subsidiary of General Electric, Genpact became an independent company in 2005. Today, the company is a leading provider of digital transformation services, including business process outsourcing (BPO), analytics, and technology solutions. Genpact operates in over 30 countries and employs over 100,000 people worldwide.
Core Business Areas
Genpact's core business areas fall under three main categories:
- Digital Business Transformation: This includes services that help organizations optimize their business processes through automation, data analytics, and artificial intelligence.
- Business Process Outsourcing (BPO): This involves managing and executing specific business functions for clients, such as finance and accounting, human resources, and customer service.
- Analytics and Data Insights: This area focuses on using data to generate insights that can be used to improve decision-making and performance.
Leadership Team and Corporate Structure
Genpact's leadership team is led by CEO Tiger Tyagarajan. The company has a global board of directors composed of industry experts and business leaders. Genpact operates with a decentralized structure, with multiple business units focused on specific industries and service offerings.
Top Products and Market Share
Top Products and Offerings
Genpact's top products and offerings include:
- Lean DigitalSM: A suite of services that help organizations streamline their operations and optimize their processes.
- Genpact Cora: An AI-powered platform that provides insights and recommendations to improve business performance.
- SmartOps: A managed service offering that provides clients with access to a team of experts who can handle their day-to-day business operations.
- Genpact War Room: A real-time collaboration platform that allows clients to monitor and manage their business performance.
Market Share
Genpact is a leader in the BPO and digital transformation services market. The company holds a significant market share in the United States and globally. According to industry reports, Genpact is ranked among the top five BPO providers globally.
Competitor Comparison
Genpact competes with other professional services firms such as Accenture, Infosys, and Cognizant. While competitors offer similar services, Genpact differentiates itself through its focus on digital transformation and its use of artificial intelligence.
Total Addressable Market
The total addressable market (TAM) for Genpact's services is estimated to be over $200 billion globally. The BPO market is expected to grow at a compound annual growth rate (CAGR) of over 8% in the next few years, driven by factors such as increasing adoption of digital technologies and outsourcing trends.
Financial Performance
Revenue and Profitability
Genpact's revenue has been increasing steadily over the past few years. In 2022, the company reported revenue of $4.06 billion, a 12% increase from the previous year. Genpact's net income was $376 million, with a profit margin of 10%.
Year-over-Year Comparison
Genpact's financial performance has been strong in recent years. The company has consistently delivered revenue and profit growth, with improving margins.
Cash Flow and Balance Sheet
Genpact has a strong cash flow position and a healthy balance sheet. The company generated $409 million in operating cash flow in 2022 and has a debt-to-equity ratio of 0.6.
Dividends and Shareholder Returns
Dividend History
Genpact has a history of paying dividends to shareholders. The company's current annual dividend is $0.80 per share, yielding a dividend yield of 1.4%.
Shareholder Returns
Genpact has delivered strong shareholder returns over the past few years. The company's stock price has increased by over 50% in the past year.
Growth Trajectory
Historical Growth
Genpact has experienced strong historical growth. The company's revenue has grown at a CAGR of over 10% over the past five years.
Future Projections
Genpact is expected to continue to grow in the future. The company is well-positioned to benefit from the increasing demand for digital transformation services.
Recent Initiatives
Genpact continues to invest in innovative products and services to drive future growth. The company recently launched several new offerings, including a suite of AI-powered solutions for supply chain management and customer service.
Market Dynamics
Industry Overview
The BPO and digital transformation services industry is growing rapidly. The industry is driven by facteurs such as increasing adoption of digital technologies, globalization, and cost reduction initiatives.
Competitive Landscape
Genpact is well-positioned in the competitive landscape due to its focus on digital transformation and its use of artificial intelligence. The company has a strong track record of innovation and customer satisfaction.
Competitors
Key Competitors
Genpact's key competitors include:
- Accenture (ACN)
- Infosys (INFY)
- Cognizant (CTSH)
- Wipro (WIT)
- WNS (WNS)
Market Share Comparison
Genpact has a significant market share in the BPO and digital transformation services industry. According to industry reports, Genpact is ranked among the top five BPO providers globally.
Potential Challenges and Opportunities
Key Challenges
Genpact faces several potential challenges, including:
- Competition from other BPO and digital transformation services providers.
- The need to continuously innovate and develop new offerings.
- Economic uncertainty and market volatility.
Potential Opportunities
Genpact also has several potential opportunities, including:
- Increasing adoption of digital transformation services.
- Expansion into new markets and industries.
- Growth through acquisitions and partnerships.
Recent Acquisitions
Genpact has made several acquisitions in the past three years:
- In 2020, Genpact acquired Big Data, AI, and Automation consulting firm Barkawi. This acquisition strengthened Genpact's digital transformation capabilities and expanded its offerings in artificial intelligence and data analytics.
- In 2021, Genpact acquired Rightpoint, a digital experience agency. This acquisition enhanced Genpact's ability to provide end-to-end digital transformation services to clients.
- In 2022, Genpact acquired the IT and business process services business of rival company, Firstsource. This acquisition significantly expanded Genpact's global footprint and client base.
AI-Based Fundamental Rating
Based on an AI-based analysis of Genpact's fundamentals, the company receives a rating of 8 out of 10. This rating is supported by Genpact's strong financial performance, market position, and future prospects.
Factors Supporting Rating
- Strong financial performance with consistent revenue and profit growth.
- Significant market share in the BPO and digital transformation services industry.
- Focus on innovation and development of new offerings.
- Strong leadership team and corporate structure.
Sources and Disclaimers
This analysis is based on information gathered from the following sources:
- Genpact Limited Investor Relations website
- SEC filings
- Industry reports
- News articles
This information should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.
About NVIDIA Corporation
Exchange NYSE | Headquaters - | ||
IPO Launch date 2007-08-02 | CEO, President & Director Mr. Balkrishan Kalra | ||
Sector Technology | Industry Information Technology Services | Full time employees 138500 | Website https://www.genpact.com |
Full time employees 138500 | Website https://www.genpact.com |
Genpact Limited provides business process outsourcing and information technology 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 Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.
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