Core Points - Genpact Limited has declared a cash dividend of $0.1525 per common share for Q3 2024, payable on September 25, 2024, to shareholders of record as of September 11, 2024 [1] Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries, focusing on delivering outcomes that shape the future [2] - The company serves and transforms leading enterprises, including those in the Fortune Global 500, leveraging deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI [2]

Investment Thesis - Genpact Limited reported an average headcount increase of 9.7% in the last quarter, alongside new investments in sales and marketing to support growth in the global artificial intelligence market, leading to expectations of accelerated unlevered free cash flow (FCF) from 2025 to 2029 [1][30] - The price target for Genpact is set at $66-$67 per share based on a discounted cash flow (DCF) model, while previous M&A transactions suggest a valuation exceeding $129 per share, indicating the stock is currently undervalued [1][30] Business Overview - Genpact Limited operates as a global professional services firm, providing digital-led innovation and digitally-enabled intelligent operations to Fortune Global 500 clients [2] - The company has over 131,000 employees across more than 35 countries, contributing to a diversified business profile that may lead to less volatile future net sales growth compared to peers with less geographic diversification [3] Financial Position - Genpact maintains a strong balance sheet with significant cash and accounts receivable, indicating limited need for debt financing [4] - The asset/liability ratio is greater than 1x, and net leverage appears limited, suggesting a stable financial position that supports hiring and marketing investments [4] Growth Expectations - The company reported a GAAP EPS of $0.64 and sales of $1.13 billion in the last quarter, both exceeding expectations, with analysts forecasting net sales growth of 3% in 2024, 5.8% in 2025, and 8% in 2026 [10][13] - The global artificial intelligence market is projected to grow at a CAGR of 36.6% from 2024 to 2030, which is expected to positively impact Genpact's net sales [18][30] Segment Performance - The Financial Services segment is anticipated to drive net sales growth due to increased demand for financial crime services, with the global market for these solutions valued at approximately $1.30 billion in 2023 and expected to grow at a CAGR of 5.7% from 2024 to 2032 [21] - The Consumer and Healthcare segment also saw a 4.6% increase in quarterly revenue, contributing to overall growth expectations [21] Stock Demand Factors - Ongoing stock repurchases and recent dividend increases are expected to enhance stock demand and lower the cost of capital, with the company repurchasing 864,925 shares at an average price of $34.67 per share in the last quarter [21][30] - The dividend increased by 10% in 2023 and by 11% in 2024, further supporting stock demand [21][30] Valuation Insights - A review of previous transactions in the tech industry suggests a median EV/NTM sales ratio of 5.51x, implying a total valuation of $129 per share for Genpact based on projected revenues [23][26] - The current trading multiple of 10x forward 2024 earnings is considered low for a company expected to grow at 11% year-over-year in 2026 [13][30]

Core Insights - Genpact will announce its second quarter results for the period ending June 30, 2024, on August 8, 2024, after U.S. financial markets close [1] - A conference call will be held at 5:00 p.m. ET to discuss the company's performance following the results announcement [1] Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries [2] - The company focuses on delivering outcomes that shape the future, driven by curiosity, entrepreneurial agility, and a commitment to creating lasting value for clients [2] - Genpact serves and transforms leading enterprises, including those in the Fortune Global 500, leveraging deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI [2]

Agreement aims to drive greater agility and cost leadership NEW YORK, July 9, 2024 /PRNewswire/ -- Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, announced a new multi-year engagement with ALDI SÜD to accelerate and support the continued transformation of its retail operations in the U.S. and Australia. Genpact's data, tech, and AI capabilities, coupled with its business and industry knowledge, will help ALDI accelerate agility and cost leade ...

Genpact (G) is poised to capitalize on AI growth opportunities. The company is conducting acquisitions conducive to expanding its AI product portfolio. A decreasing current ratio and rising talent remain as concernsGreported impressive first-quarter 2024 results. Quarterly EPS of 73 cents surpassed the consensus estimate by 5.8% and grew 7.4% year over year. Revenues of $1.13 billion beat the consensus mark by 2.1% and increased 3.9% from the year-ago quarter.How is Genpact Doing?The company is a pioneer in ...

Receives Gold standard recognition for excellence in AI and tech workplaces Reaffirms Genpact's commitment to empowering data scientists to learn, innovate, and build careers while driving unparalleled outcomes for clients NEW YORK, June 27, 2024  /PRNewswire/ -- Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, today announced that it has earned the 5th spot in the annual Analytics India Magazine (AIM) "50 Best Firms for Data Scientists to Work ...

Everest Group's PEAK Matrix® Assessment 2024 underscores Genpact's AI capabilities, strong talent pool, and end-to-end SAP suite of services and support for mid-market enterprisesNEW YORK, June 26, 2024 /PRNewswire/ -- Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, has been recognized as a Leader in Everest Group's SAP Business Application Services PEAK Matrix® assessment for mid-market enterprises.In this inaugural report, Genpact is credited ...

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Genpact's Infosec360 in-house platform and dashboard earns honors as innovative security control solution providing exemplary business valueNEW YORK, June 18, 2024 /PRNewswire/ -- Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, today announced that it has been recognized with the 2024 CSO Award from Foundry's CSO, a leading source for breaking news, analysis, and research on security and risk management.This year's award recognizes Genpact's ef ...

AI-led transformation is Genpact's epicenter in supporting growth, efficiency, and scalability for global clientsNEW YORK, June 18, 2024  /PRNewswire/ -- Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, has earned the top recognition as a Leader in Everest Group's first PEAK Matrix® Assessment 2024 for insurance intermediaries services.Genpact's AI-first approach leverages data from existing frameworks to support impactful and transformative ope ...