CAPGEMINI SE (CAP.PA)
FR0000125338 - Common Stock
Overall CAP gets a fundamental rating of 5 out of 10. We evaluated CAP against 67 industry peers in the IT Services industry. CAP scores excellent on profitability, but there are some minor concerns on its financial health. CAP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAP was profitable.
In the past year CAP had a positive cash flow from operations.
Each year in the past 5 years CAP has been profitable.
CAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAP has a better Return On Assets (6.79%) than 71.88% of its industry peers.
With a decent Return On Equity value of 15.58%, CAP is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of CAP (10.59%) is better than 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAP is in line with the industry average of 10.86%.
The last Return On Invested Capital (10.59%) for CAP is above the 3 year average (9.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROIC | 10.59% |
ROA(3y)5.87%
ROA(5y)5.34%
ROE(3y)15.16%
ROE(5y)14.26%
ROIC(3y)9.72%
ROIC(5y)9.09%
1.3 Margins
Looking at the Profit Margin, with a value of 7.60%, CAP is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
CAP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.49%, CAP is doing good in the industry, outperforming 78.13% of the companies in the same industry.
CAP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 27.14%, CAP is doing worse than 79.69% of the companies in the same industry.
CAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% |
OM growth 3Y1.13%
OM growth 5Y1.42%
PM growth 3Y6.93%
PM growth 5Y5.95%
GM growth 3Y0.96%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAP is creating some value.
The number of shares outstanding for CAP remains at a similar level compared to 1 year ago.
The number of shares outstanding for CAP has been increased compared to 5 years ago.
The debt/assets ratio for CAP has been reduced compared to a year ago.
2.2 Solvency
CAP has an Altman-Z score of 2.81. This is not the best score and indicates that CAP is in the grey zone with still only limited risk for bankruptcy at the moment.
CAP has a Altman-Z score of 2.81. This is in the better half of the industry: CAP outperforms 60.94% of its industry peers.
CAP has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as CAP would need 2.67 years to pay back of all of its debts.
CAP has a Debt to FCF ratio of 2.67. This is in the better half of the industry: CAP outperforms 67.19% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that CAP is not too dependend on debt financing.
CAP's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. CAP outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.63
WACC6.5%
2.3 Liquidity
CAP has a Current Ratio of 1.23. This is a normal value and indicates that CAP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CAP (1.23) is comparable to the rest of the industry.
CAP has a Quick Ratio of 1.23. This is a normal value and indicates that CAP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CAP (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
CAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.16%.
Measured over the past years, CAP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.47% on average per year.
Looking at the last year, CAP shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
CAP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.28% yearly.
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y15.47%
EPS Q2Q%1.38%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
3.2 Future
CAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
Based on estimates for the next years, CAP will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y-4.52%
EPS Next 2Y0.13%
EPS Next 3Y2.88%
EPS Next 5Y4.09%
Revenue Next Year-1.42%
Revenue Next 2Y0.94%
Revenue Next 3Y2.5%
Revenue Next 5Y3.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.46, CAP is valued correctly.
Based on the Price/Earnings ratio, CAP is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
CAP is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.51, CAP is valued correctly.
CAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAP is cheaper than 64.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAP to the average of the S&P500 Index (23.99), we can say CAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
CAP's Enterprise Value to EBITDA ratio is in line with the industry average.
CAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
CAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y0.13%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, CAP has a reasonable but not impressive dividend return.
The stock price of CAP dropped by -21.96% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.54, CAP has a dividend in line with its industry peers.
CAP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of CAP is nicely growing with an annual growth rate of 13.86%!
Dividend Growth(5Y)13.86%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
34.34% of the earnings are spent on dividend by CAP. This is a low number and sustainable payout ratio.
CAP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.34%
EPS Next 2Y0.13%
EPS Next 3Y2.88%
CAPGEMINI SE
EPA:CAP (12/24/2024, 7:00:00 PM)
156
+0.55 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners52.7%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap26.93B
Analysts78.4
Price Target211.2 (35.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)13.86%
DP34.34%
Div Incr Years5
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.24%
PT rev (3m)-6.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 12.51 | ||
| P/S | 1.21 | ||
| P/FCF | 10.91 | ||
| P/OCF | 9.84 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.41 |
EPS(TTM)12.52
EY8.03%
EPS(NY)12.47
Fwd EY8%
FCF(TTM)14.3
FCFY9.17%
OCF(TTM)15.86
OCFY10.16%
SpS128.81
BVpS62.82
TBVpS-7.84
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROCE | 14.97% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.79% | ||
| ROICexgc | 93.4% | ||
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% | ||
| FCFM | 11.1% |
ROA(3y)5.87%
ROA(5y)5.34%
ROE(3y)15.16%
ROE(5y)14.26%
ROIC(3y)9.72%
ROIC(5y)9.09%
ROICexc(3y)13.78%
ROICexc(5y)13.18%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.75%
ROCE(5y)12.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.17%
ROICexc growth 3Y5.14%
ROICexc growth 5Y2.73%
OM growth 3Y1.13%
OM growth 5Y1.42%
PM growth 3Y6.93%
PM growth 5Y5.95%
GM growth 3Y0.96%
GM growth 5Y-0.15%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 38.62% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 13.1 | ||
| Cash Conversion | 84.24% | ||
| Profit Quality | 146.18% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.81 |
F-Score8
WACC6.5%
ROIC/WACC1.63
Cap/Depr(3y)38.97%
Cap/Depr(5y)37.88%
Cap/Sales(3y)1.31%
Cap/Sales(5y)1.36%
Profit Quality(3y)160.1%
Profit Quality(5y)163.2%
High Growth Momentum
Growth
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y15.47%
EPS Q2Q%1.38%
EPS Next Y-4.52%
EPS Next 2Y0.13%
EPS Next 3Y2.88%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
Revenue Next Year-1.42%
Revenue Next 2Y0.94%
Revenue Next 3Y2.5%
Revenue Next 5Y3.53%
EBIT growth 1Y-4.38%
EBIT growth 3Y13.7%
EBIT growth 5Y12.86%
EBIT Next Year24.35%
EBIT Next 3Y11.16%
EBIT Next 5Y8.21%
FCF growth 1Y19.97%
FCF growth 3Y15.91%
FCF growth 5Y14.33%
OCF growth 1Y14.76%
OCF growth 3Y14.98%
OCF growth 5Y12.58%