Here's a stock I hadn't heard about before: Genpact, an IT service company out of India. Somehow they snagged "G" as their stock symbol. Wonder how that happened.
Co. says, about 115,000 employees, so not a tiny company.
Seems like a value trap in the sense that revenue has increased every year since '09 (as far back as I can see data), but yet stock's now about where it's been four years ago (with some volatility between). Profitable every year. I show p/e about 16x with a ten-year median about 23x. P/sales is at a low.
2nd Q:
"Our strong bookings momentum continued during the second quarter. We currently expect 2023 full-year bookings growth of 25% to 30% driven by large deal and new logo wins. This positions us for strong top-line growth in 2024 and beyond. Along with a great bookings quarter, our adjusted operating income margin, adjusted diluted EPS, and cash flow from operations all exceeded our expectations," said "Tiger" Tyagarajan, Genpact's President and CEO. "Cost reduction and digital transformation continue to remain high priorities for our clients, who are increasingly turning to us to help accelerate their data journeys, paving the way for us to deliver more value to them through AI-augmented, end-to-end services." Revenue might be up every year, but not much this q:
Total revenue was $1.106 billion, up 2% year-over-year (3% constant currency).Revenue from Data-Tech-AI services was $501 million, up 2% year-over-year (3% constant currency) representing 45% of total revenue.Revenue from Digital Operations services was $605 million, up 1% year-over-year (2% constant currency), representing 55% of total revenue.Net income was $116 million, up 62% year-over-year, with a corresponding margin of 10.5%. As long as they can keep raising revenue, and if earnings follow, and if p/e doesn't drop further from a reasonable 16-18x, I believe I can stay with the stock. At least for a very small position. Which I'm now acquiring.
finance.yahoo.com |
