We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Artificial Intelligence Fuels Genpact's Growth, High Talent Costs Ail
Read MoreHide Full Article
Genpact (G - Free Report) stock has gained 52% in a year, outperforming the industry's 3.3% fall and the 8.4% increase of the Zacks S&P 500 composite.
G reported impressive fourth-quarter 2024 results. Quarterly EPS of 91 cents surpassed the consensus estimate by 5.8% and grew 11% year over year. Revenues of $1.25 billion beat the consensus mark by 1.7% and increased 8.9% from the year-ago quarter.
How is Genpact Faring?
The company’s dominance in the Business Process Outsourcing services market is due to its expertise in business analytics, digital and consulting services. It is an industry-leading provider of the Industrial Internet of Things (IIoT), user experience, order and supply chain management, data engineering, digital content and risk management, direct procurement, logistics services, and more.
The company’s focus on integrating process, analytics, and digital technologies, coupled with its deep domain expertise, is creating a medium to win customers frequently. We anticipate customer base expansion, disciplined cost management, buyouts, and aggressive share repurchases to help the company retain its success in the long run.
Artificial Intelligence (AI) is vital for Genpact’s growth. Its patented approach, Digital Smart Enterprise Processes (Digital SEPs), improves clients’ business processes. Digital SEPs reduce inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.
In 2024, 2023, 2022 and 2021, G repurchased shares worth $252.7 million, $225.4 million, $214.1 million and $298.2 million, respectively. The company paid out $108 million, $100 million, $91.8 million and $80.5 million in dividends to its shareholders in 2024, 2023, 2022 and 2021, respectively. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Genpact's current ratio at the end of the fourth quarter of 2024 was 2.16, lower than the industry average of 2.29. Despite being lower than the industry average, the company maintains a current ratio of more than 1, indicating efficient short-term debt coverage abilities.
Image Source: Zacks Investment Research
G operates within a mature industry that has a slower rate of expansion, marginally above inflation levels. Additionally, the industry is saturated with much larger competitors than Genpact. While G is a solid player, it does not lead the market.
The outsourcing industry is labor-intensive and significantly dependent on foreign talent. Rising talent costs due to competition could hurt the industry’s growth, in turn, affecting Genpact.
Image: Bigstock
Artificial Intelligence Fuels Genpact's Growth, High Talent Costs Ail
Genpact (G - Free Report) stock has gained 52% in a year, outperforming the industry's 3.3% fall and the 8.4% increase of the Zacks S&P 500 composite.
G reported impressive fourth-quarter 2024 results. Quarterly EPS of 91 cents surpassed the consensus estimate by 5.8% and grew 11% year over year. Revenues of $1.25 billion beat the consensus mark by 1.7% and increased 8.9% from the year-ago quarter.
How is Genpact Faring?
The company’s dominance in the Business Process Outsourcing services market is due to its expertise in business analytics, digital and consulting services. It is an industry-leading provider of the Industrial Internet of Things (IIoT), user experience, order and supply chain management, data engineering, digital content and risk management, direct procurement, logistics services, and more.
The company’s focus on integrating process, analytics, and digital technologies, coupled with its deep domain expertise, is creating a medium to win customers frequently. We anticipate customer base expansion, disciplined cost management, buyouts, and aggressive share repurchases to help the company retain its success in the long run.
Artificial Intelligence (AI) is vital for Genpact’s growth. Its patented approach, Digital Smart Enterprise Processes (Digital SEPs), improves clients’ business processes. Digital SEPs reduce inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.
In 2024, 2023, 2022 and 2021, G repurchased shares worth $252.7 million, $225.4 million, $214.1 million and $298.2 million, respectively. The company paid out $108 million, $100 million, $91.8 million and $80.5 million in dividends to its shareholders in 2024, 2023, 2022 and 2021, respectively. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Genpact's current ratio at the end of the fourth quarter of 2024 was 2.16, lower than the industry average of 2.29. Despite being lower than the industry average, the company maintains a current ratio of more than 1, indicating efficient short-term debt coverage abilities.
G operates within a mature industry that has a slower rate of expansion, marginally above inflation levels. Additionally, the industry is saturated with much larger competitors than Genpact. While G is a solid player, it does not lead the market.
The outsourcing industry is labor-intensive and significantly dependent on foreign talent. Rising talent costs due to competition could hurt the industry’s growth, in turn, affecting Genpact.
Zacks Rank & Stocks to Consider
G has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Affirm (AFRM - Free Report) and Baidu, Inc. (BIDU - Free Report) .
Affirm sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AFRM has a long-term earnings growth expectation of 36.2%. It delivered a trailing four-quarter earnings surprise of 84.1% on average.
Baidu currently flaunts a Zacks Rank of 1.
BIDU has a long-term earnings growth expectation of 4.2%. It delivered a trailing four-quarter earnings surprise of 19.1% on average.