Genpact Stock Buy Hold or Sell Recommendation

Stocks . USA . 
Stock . Genpact Limited
G Stock  USD 44.77  0.08  0.18%   
Taking into account the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Genpact Limited is 'Buy'. Macroaxis provides Genpact buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Genpact positions. The advice algorithm takes into account all of Genpact's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Genpact's buy-and-hold perspective. Check out Genpact Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Genpact Stock please use our How to Invest in Genpact guide.We conduct extensive research on individual companies such as Genpact and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Genpact Limited.

Execute Genpact Buy or Sell Advice

The Genpact recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Genpact Limited. Macroaxis does not own or have any residual interests in Genpact Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Genpact's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell GenpactBuy Genpact
Buy

Volatility

Very steady
Details

Hype Condition

Low key
Details

Current Valuation

Undervalued
Details

Odds of Distress

Low
Details

Economic Sensitivity

Follows the market closely
Details

Analyst Consensus

Hold
Details

Financial Strenth (F Score)

Healthy
Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Unlikely Manipulator
Details
For the selected time horizon Genpact Limited has a Risk Adjusted Performance of 0.0053, Jensen Alpha of 0.0287, Total Risk Alpha of 0.0437, Sortino Ratio of 0.0247 and Treynor Ratio of (0.006685)
Genpact Limited investment recommendation module can be used to check and cross-verify current trade recommendations provided by analysts evaluating the entity's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Genpact Limited is not overpriced, please check out all Genpact fundamentals, including its number of shares shorted, ebitda, current ratio, as well as the relationship between the price to sales and cash per share . Given that Genpact Limited has a price to book of 4.82 X, we strongly advise you to confirm Genpact Limited market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Genpact Trading Alerts and Improvement Suggestions

Genpact Limited generated a negative expected return over the last 90 days
Over 99.0% of the company shares are owned by institutional investors
Latest headline from hawaiinewsnow.com: Genpact Named to Worlds Most Ethical Companies list by Ethisphere Institute for Fifth Year

Genpact Returns Distribution Density

The distribution of Genpact's historical returns is an attempt to chart the uncertainty of Genpact's future price movements. The chart of the probability distribution of Genpact stock daily returns describes the distribution of returns around its average expected value. We use Genpact Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Genpact returns is essential to provide solid investment advice for Genpact.
Mean Return0.004001Value At Risk-2.01
Potential Upside1.99Standard Deviation1.22
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Genpact historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Genpact Cash Flow Accounts

201820192020202120222023 (projected)
Capital Expenditure(159.75 M)(107.01 M)(79.76 M)(50.86 M)(54.33 M)(58.62 M)
Depreciation Amortization and Accretion103.72 M128.71 M159.84 M167.57 M129.52 M130.5 M
Net Cash Flow or Change in Cash and Cash Equivalents(71.73 M)110.42 M225.9 M238.65 M(164.32 M)(168.65 M)
Net Cash Flow Business Acquisitions and Disposals(111.57 M)(250.11 M)(186.63 M)(72.03 M)17.74 M19.14 M
Issuance Purchase of Equity Shares(140.12 M)(10.35 M)(111.98 M)(263.17 M)(186.33 M)(201.04 M)
Issuance Repayment of Debt Securities81.31 M131.3 M134.81 M49.04 M(245.85 M)(252.32 M)
Payment of Dividends and Other Cash Distributions(57.1 M)(64.67 M)(74.21 M)(80.48 M)(91.84 M)(99.09 M)
Net Cash Flow from Financing(135.19 M)39.65 M(92.01 M)(332.88 M)(571.4 M)(586.44 M)
Net Cash Flow from Investing(276.05 M)(357.12 M)(266.4 M)(122.75 M)(36.59 M)(39.48 M)
Net Cash Flow from Operations339.51 M427.89 M584.31 M694.28 M443.67 M465.93 M
Effect of Exchange Rate Changes on Cash(64.35 M)(11.72 M)(12.56 M)(19.63 M)(88.37 M)(90.69 M)
Share Based Compensation49 M83.89 M74.01 M81.97 M77.37 M68.97 M
Backtest Genpact Limited

Genpact Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Genpact or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Genpact's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Genpact stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite		0.028729
β
Beta against NYSE Composite0.90
σ
Overall volatility		1.19
Ir
Information ratio 0.0267

Genpact Volatility Alert

Genpact Limited has relatively low volatility with skewness of -0.16 and kurtosis of -0.49. However, we advise all investors to independently investigate Genpact Limited to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Genpact's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Genpact's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Genpact Fundamentals Vs Peers

Comparing Genpact's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Genpact's direct or indirect competition across all of the common fundamentals between Genpact and the related equities. This way, we can detect undervalued stocks with similar characteristics as Genpact or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Genpact's fundamental indicators could also be used in its relative valuation, which is a method of valuing Genpact by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Genpact to competition
FundamentalsGenpactPeer Average
Return On Equity0.19 %(0.31) %
Return On Asset0.07 %(0.14) %
Profit Margin0.08 %(1.27) %
Operating Margin0.13 %(5.51) %
Current Valuation9.57 B16.62 B
Shares Outstanding183.67 M571.82 M
Shares Owned by Insiders0.72 %10.09 %
Shares Owned by Institutions99.28 %39.21 %
Number of Shares Shorted1.01 M4.71 M
Price to Earning28.59 X28.72 X
Price to Book4.82 X9.51 X
Price to Sales1.87 X11.42 X
Revenue4.37 B9.43 B
Gross Profit1.54 B27.38 B
EBITDA542.55 M3.9 B
Net Income353.4 M570.98 M
Cash and Equivalents646.76 M2.7 B
Cash per Share2.53 X5.01 X
Total Debt1.25 B5.32 B
Debt to Equity1.04 %48.70 %
Current Ratio1.58 X2.16 X
Book Value Per Share9.98 X1.93 K
Cash Flow from Operations443.67 M971.22 M
Short Ratio1.22 X4.00 X
Earnings Per Share1.87 X3.12 X
Price to Earnings To Growth1.70 X4.89 X
Target Price51.19
Number of Employees118.9 K18.84 K
Beta1.21-0.15
Market Capitalization8.21 B19.03 B
Total Asset4.59 B29.47 B
Retained Earnings589.32 M9.33 B
Working Capital600.59 M1.48 B
   Acquisition by Michael Weiner of 24349 shares of Genpact subject to Rule 16b-3 [view details]

About Genpact Buy or Sell Advice

When is the right time to buy or sell Genpact Limited? Buying financial instruments such as Genpact Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 2022 2023 (projected)
Current Assets1.75 B1.92 B1.78 B1.77 B
Total Assets4.87 B4.98 B4.59 B4.5 B

Use Investing Ideas to Build Portfolios

In addition to having Genpact in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Utilities Thematic Idea Now

Utilities
Utilities Theme
Highly leveraged corporations that deliver utilities such as power, water or gas to public or business. The Utilities theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities Theme or any other thematic opportunities.
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Check out Genpact Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Genpact Stock please use our How to Invest in Genpact guide. Note that the Genpact Limited information on this page should be used as a complementary analysis to other Genpact's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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When running Genpact Limited price analysis, check to measure Genpact's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Genpact is operating at the current time. Most of Genpact's value examination focuses on studying past and present price action to predict the probability of Genpact's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Genpact's price. Additionally, you may evaluate how the addition of Genpact to your portfolios can decrease your overall portfolio volatility.
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Is Genpact's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Genpact. If investors know Genpact will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Genpact listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.297
Dividend Share
0.5
Earnings Share
1.87
Revenue Per Share
23.733
Quarterly Revenue Growth
0.028
The market value of Genpact Limited is measured differently than its book value, which is the value of Genpact that is recorded on the company's balance sheet. Investors also form their own opinion of Genpact's value that differs from its market value or its book value, called intrinsic value, which is Genpact's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Genpact's market value can be influenced by many factors that don't directly affect Genpact's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Altman
Z Score
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Piotroski
F Score
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Beneish
M Score
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Financial
Analysis
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Buy or Sell
Advice
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Earnings
Projections
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Please note, there is a significant difference between Genpact's value and its price as these two are different measures arrived at by different means. Investors typically determine Genpact value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genpact's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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