Genpact (G) AI Stock Analysis

• Market Cap: $7.84B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.80
• Revenue Growth: 7.37%
• EPS Growth: -14.64%
• Country: US
• Employees: 145,000
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 0.88
• Shares Outstanding: 174,270,080
• 10 Day Avg. Volume: 1,805,742
• 30 Day Avg. Volume: 1,856,387
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 9.84
• 1Y Price Target: $51.67
• Price Target Upside: 15.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $51.00 ▲(13.64% Upside)

Genpact's strong financial performance and positive earnings call are the primary drivers of its stock score. While technical analysis presents mixed signals, the company's reasonable valuation and strategic focus on AI-driven transformation support a positive outlook. Concerns about cash flow and segment-specific growth are secondary factors.

Positive Factors

Earnings

Genpact reported second-quarter results that came in above the high end of management’s guidance for revenue, gross margin, and adjusted EPS.

Growth Potential

The Data & AI pipeline has tripled over the past year, and the AI 'Gigafactory' is now live across all Genpact verticals, with 45+ clients onboarded.

Valuation

Genpact shares are expected to open at an inexpensive valuation, reinforcing the attractiveness of the investment.

Negative Factors

Financial Prudence

Genpact seeks to ensure forecasts and expectations do not get ahead of fundamentals, stressing outlook prudence.

Macroeconomic Conditions

Genpact's growth is expected to re-accelerate once macroeconomic conditions normalize, suggesting potential vulnerability to external economic factors.

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 its business process outsourcing (BPO) services, which include managing client operations across various industries. Key revenue streams include transaction-based services, consulting fees, and subscription-based services associated with its technology offerings. The company also benefits from long-term contracts with large enterprises, ensuring a consistent flow of income. Additionally, Genpact's strategic partnerships with technology providers enhance its service offerings and contribute to its revenue by integrating advanced solutions into client operations. Its focus on digital transformation services is also a significant factor driving growth, as more companies seek to modernize their processes and leverage data analytics for better decision-making.

Genpact Financial Statement Overview

Summary

Genpact demonstrates strong financial performance with consistent revenue growth, solid profit margins, and a stable balance sheet. However, a decline in free cash flow growth is a concern that needs monitoring.

Income Statement

Genpact's income statement shows a strong performance with consistent revenue growth and healthy profit margins. The TTM data indicates a slight improvement in revenue growth rate at 1.62% compared to the previous year. Gross profit margin remains stable around 35%, and net profit margin is solid at 10.88%. EBIT and EBITDA margins are also robust, reflecting efficient operational management. Overall, the company demonstrates strong profitability and growth potential.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.59 in the TTM period, showing improvement from previous years. Return on equity is strong at 22.04%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a balanced capital structure. However, the company should continue to monitor debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth in the TTM period, which is a concern. However, the operating cash flow to net income ratio is strong at 0.86, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.88. While cash flow management is generally strong, the negative growth in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	4.77B	4.48B	4.37B	4.02B	3.71B
Gross Profit	1.76B	1.69B	1.57B	1.54B	1.43B	1.29B
EBITDA	880.00M	852.58M	772.52M	652.86M	709.01M	616.56M
Net Income	538.30M	513.67M	631.25M	353.40M	369.45M	308.28M
Balance Sheet
Total Assets	5.31B	4.99B	4.81B	4.59B	4.98B	4.87B
Cash, Cash Equivalents and Short-Term Investments	663.26M	671.61M	583.67M	646.76M	899.46M	680.44M
Total Debt	1.53B	1.45B	1.50B	1.67B	1.97B	1.94B
Total Liabilities	2.72B	2.60B	2.56B	2.76B	3.08B	3.04B
Stockholders Equity	2.59B	2.39B	2.25B	1.83B	1.90B	1.83B
Cash Flow
Free Cash Flow	563.41M	530.19M	432.04M	389.28M	637.03M	503.94M
Operating Cash Flow	649.51M	615.42M	490.81M	443.67M	694.28M	584.31M
Investing Cash Flow	-165.96M	-105.96M	-78.94M	-36.59M	-122.75M	-266.40M
Financing Cash Flow	-733.84M	-424.85M	-483.00M	-571.40M	-332.88M	-92.01M

Genpact Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 44.88 is above the 20-day moving average (MA) of 44.53, above the 50-day MA of 44.51, and below the 200-day MA of 46.08, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 58.44 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
G	79 Outperform	$7.84B	15.00	21.86%	1.43%	7.37%	-14.64%
EXLS	78 Outperform	$7.13B	30.55	24.70%	―	15.15%	34.33%
WNS	76 Outperform	$3.23B	20.11	21.23%	―	1.94%	26.15%
EPAM	75 Outperform	$9.36B	23.97	11.36%	―	9.73%	-0.29%
DXC	71 Outperform	$2.60B	7.07	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$35.52B	8.84	-11.04%	1.87%	8.55%	-8.14%
KD	48 Neutral	$7.21B	26.17	26.55%	―	-3.44%	―

Genpact Corporate Events

Genpact Appoints Thimaya Subaiya to Board of Directors

On July 31, 2025, Genpact Limited announced the appointment of Thimaya Subaiya to its Board of Directors. Mr. Subaiya, currently an Executive Vice President at Cisco Systems, brings extensive experience in operations, security, and customer experience, which is expected to strengthen Genpact’s strategic direction and operational capabilities.

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.

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.