Genpact (G) AI Stock Analysis

• Market Cap: $7.88B
• Dividend Yield: 1.42%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.78
• Revenue Growth: 7.31%
• EPS Growth: -15.86%
• Country: US
• Employees: 145,000
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.84
• Shares Outstanding: 174,874,360
• 10 Day Avg. Volume: 1,124,149
• 30 Day Avg. Volume: 1,478,652
• PEG Ratio: 4.27
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.94
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $50.88
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $51.00 ▲(12.06%Upside)

Genpact demonstrates strong financial health with robust cash flow and solid equity positions, which are the most significant factors driving the score. The company's strategic focus on Data-Tech-AI and strong pipeline indicate potential for sustained growth. However, technical and valuation metrics suggest caution due to mixed market signals and fair valuation. The conservative guidance revision amid macroeconomic uncertainties also moderates the overall outlook.

Positive Factors

Acquisition and Skills Enhancement

The acquisition sharpens Genpact’s skills in AI, data strategy, architecture, and engineering while bolstering its shift toward the higher growth DTAI business.

Advanced Technology Solutions

Genpact's transition to Advanced Technology Solutions positions the company to accelerate organic revenue growth from new client wins and up-sells to existing clients.

Client Growth

Management highlighted client growth and adoption in the Advanced Technology Solutions segment, with the Data and AI pipeline growing three times in the last 12 months.

Financial Performance

The shares are trading at an attractive valuation, making the risk-reward profile compelling and supporting the analyst's BUY rating.

Negative Factors

Analyst Rating

Analyst's rating for G shares is Market Perform, suggesting solid execution but no change in estimates, rating, or target.

Genpact Business Overview & Revenue Model

Company Description

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: Banking, Capital Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services. 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, application production support, and database management services; 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.

How the Company Makes Money

Genpact generates revenue primarily through long-term contractual agreements with its clients to provide business process outsourcing (BPO) and information technology (IT) services. The company offers a range of services including finance and accounting, procurement and supply chain management, risk management, and customer service. Additionally, Genpact's revenue streams are bolstered by its consulting and analytics services, which help clients optimize their digital transformations and operational efficiencies. Significant partnerships with technology providers and industry-specific expertise enable Genpact to expand its service offerings and deepen client engagements, contributing to its overall earnings.

Genpact Financial Statement Overview

Summary

Genpact displays strong financial health with consistent revenue growth, healthy profit margins, low financial leverage, and robust cash flow. The company is well-positioned to support future growth and withstand market challenges.

Income Statement

Genpact shows a strong financial performance with consistent revenue growth. The TTM revenue grew by 1.75% compared to the previous year-end, and EBIT margin is at 14.89%, reflecting efficient operations. Net profit margin remains healthy at 10.88%, indicating good profitability. However, the EBITDA margin slightly decreased to 17.21%, which suggests some pressure on operational efficiencies.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.10, indicating low financial leverage. The equity ratio of 50.13% suggests a strong equity position relative to total assets. ROE is at 21.50%, demonstrating effective use of equity to generate profits. Improvements in liabilities and equity position are noted, contributing to a solid financial standing.

Cash Flow

Genpact's cash flow is robust, with a free cash flow growth rate of 12.77% in the TTM period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.29, indicating high-quality earnings. Free cash flow to net income is 1.14, highlighting efficient cash conversion from profits. Overall, cash flow management is strong, supporting operational and strategic initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.77B	4.48B	4.37B	4.02B	3.71B
Gross Profit	1.69B	1.57B	1.54B	1.43B	1.29B
EBITDA	843.57M	769.77M	639.50M	684.98M	612.14M
Net Income	513.67M	631.25M	353.40M	369.45M	308.28M
Balance Sheet
Total Assets	4.99B	4.81B	4.59B	4.98B	4.87B
Cash, Cash Equivalents and Short-Term Investments	671.61M	583.67M	646.76M	899.46M	680.44M
Total Debt	1.45B	1.50B	1.67B	1.97B	1.94B
Total Liabilities	2.60B	2.56B	2.76B	3.08B	3.04B
Stockholders Equity	2.39B	2.25B	1.83B	1.90B	1.83B
Cash Flow
Free Cash Flow	530.19M	432.04M	389.28M	637.03M	503.94M
Operating Cash Flow	615.42M	490.81M	443.67M	694.28M	584.31M
Investing Cash Flow	-105.96M	-78.94M	-36.59M	-122.75M	-266.40M
Financing Cash Flow	-424.85M	-483.00M	-571.40M	-332.88M	-92.01M

Genpact Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For G, the sentiment is Positive. The current price of 45.51 is above the 20-day moving average (MA) of 45.14, above the 50-day MA of 43.84, and above the 200-day MA of 45.44, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 67.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for G.

Genpact Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	78 Outperform	$3.21B	19.25	21.24%	―	1.94%	26.19%
DLB	78 Outperform	$7.33B	28.88	10.28%	1.69%	4.03%	34.45%
G	77 Outperform	$7.88B	15.62	22.21%	1.42%	7.31%	-15.86%
CACI	76 Outperform	$10.51B	22.56	13.48%	―	14.16%	22.25%
EPAM	74 Outperform	$9.57B	23.62	11.57%	―	4.72%	-3.06%
EXLS	73 Outperform	$6.90B	32.02	23.81%	―	14.18%	21.49%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%

Genpact Corporate Events

Genpact Appoints John Hinshaw to Board of Directors

On July 1, 2025, Genpact Limited announced the appointment of John Hinshaw to its Board of Directors. Mr. Hinshaw brings extensive experience from his previous roles, including Group Chief Operating Officer at HSBC Bank and various executive positions at Hewlett-Packard, Boeing, and Verizon Communications. This strategic appointment is expected to enhance Genpact’s leadership team and potentially influence its operational strategies and market positioning.

The most recent analyst rating on (G) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Genpact stock, see the G Stock Forecast page.

Genpact Holds Annual Shareholder Meeting in New York

On May 22, 2025, Genpact Limited held its annual general meeting of shareholders in New York, where three proposals were voted on. The shareholders elected the nominees to the Board of Directors, approved the executive compensation on a non-binding basis, and appointed KPMG Assurance and Consulting Services LLP as the company’s auditor.

The most recent analyst rating on (G) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Genpact stock, see the G Stock Forecast page.