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Here's Why Investors Should Retain Genpact (G) Stock Now
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Genpact Limited (G - Free Report) is benefiting from its investor-friendly steps and strong clientele.
G’s earnings and revenues for 2022 are expected to improve 11.8% and 8.3%, respectively, from the corresponding year-ago reported figures. Shares of the company have jumped 10% in the past six-month period compared with 4.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Genpact is benefiting from a strong clientele worldwide. The company serves almost one fourth of the Global Fortune 500, including big names such as AstraZeneca, Novartis, Bayer, Dentsu, AXA, Hitachi, Konica Minolta, Heineken, Santander, Synchrony Financial and Sysco.
The company's Global Client base has improved rapidly over the last five years (2016-2021) with revenues increasing at a healthy CAGR of 10.5% to reach $3.65 billion in 2021. Global Clients, as a percentage of total revenues, increased from approximately 86% in 2016 to approximately 91% in 2021. We believe that Genpact’s expertise in providing BPO services will continue to expand customer base in the long run.
We are impressed with Genpact’s endeavours in returning value to shareholders in the form of share repurchases and dividend payments. During 2021, 2020 and 2019, Genpact repurchased shares worth $298.2 million, $137.1 million and $30 million, respectively. The company paid $80.5 million, $74.2 million and $64.7 million as dividends to its shareholders during 2021, 2020 and 2019, respectively.
Such shareholder-friendly moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
A Key Risk
Genpact's current ratio at the end of third-quarter 2022 was pegged at 1.08, lower than the current ratio of 1.58 reported at the end of third-quarter 2022 and the prior-year quarter’s 1.58. Decreasing current ratio does not bode well for the company.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
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Here's Why Investors Should Retain Genpact (G) Stock Now
Genpact Limited (G - Free Report) is benefiting from its investor-friendly steps and strong clientele.
G’s earnings and revenues for 2022 are expected to improve 11.8% and 8.3%, respectively, from the corresponding year-ago reported figures. Shares of the company have jumped 10% in the past six-month period compared with 4.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Genpact is benefiting from a strong clientele worldwide. The company serves almost one fourth of the Global Fortune 500, including big names such as AstraZeneca, Novartis, Bayer, Dentsu, AXA, Hitachi, Konica Minolta, Heineken, Santander, Synchrony Financial and Sysco.
The company's Global Client base has improved rapidly over the last five years (2016-2021) with revenues increasing at a healthy CAGR of 10.5% to reach $3.65 billion in 2021. Global Clients, as a percentage of total revenues, increased from approximately 86% in 2016 to approximately 91% in 2021. We believe that Genpact’s expertise in providing BPO services will continue to expand customer base in the long run.
We are impressed with Genpact’s endeavours in returning value to shareholders in the form of share repurchases and dividend payments. During 2021, 2020 and 2019, Genpact repurchased shares worth $298.2 million, $137.1 million and $30 million, respectively. The company paid $80.5 million, $74.2 million and $64.7 million as dividends to its shareholders during 2021, 2020 and 2019, respectively.
Such shareholder-friendly moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
A Key Risk
Genpact's current ratio at the end of third-quarter 2022 was pegged at 1.08, lower than the current ratio of 1.58 reported at the end of third-quarter 2022 and the prior-year quarter’s 1.58. Decreasing current ratio does not bode well for the company.
Zacks Rank and Stocks to Consider
Genpact currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.