CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
EPA:CAP - Euronext Paris - Matif - FR0000125338 - Common Stock - Currency: EUR
Overall CAP gets a fundamental rating of 5 out of 10. We evaluated CAP against 71 industry peers in the IT Services industry. While CAP has a great profitability rating, there are some minor concerns on its financial health. CAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CAP had positive earnings in the past year.
In the past year CAP had a positive cash flow from operations.
Each year in the past 5 years CAP has been profitable.
In the past 5 years CAP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CAP (6.79%) is better than 73.85% of its industry peers.
The Return On Equity of CAP (15.58%) is better than 69.23% of its industry peers.
With a decent Return On Invested Capital value of 10.59%, CAP is doing good in the industry, outperforming 67.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAP is in line with the industry average of 10.97%.
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 belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of CAP has grown nicely.
CAP has a Operating Margin of 11.49%. This is in the better half of the industry: CAP outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
The Gross Margin of CAP (27.14%) is worse than 83.08% of its industry peers.
In the last couple of years the Gross Margin of CAP has remained more or less at the same level.
| 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.
CAP has about the same amout of shares outstanding than it did 1 year ago.
CAP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that CAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAP's Altman-Z score of 2.97 is fine compared to the rest of the industry. CAP outperforms 66.15% 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 better Debt to FCF ratio (2.67) than 69.23% 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 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.61
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
CAP has a Current ratio (1.23) which is comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
CAP has a Quick ratio of 1.23. This is comparable to the rest of the industry: CAP outperforms 56.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.16% over the past year.
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.
CAP shows a decrease in Revenue. In the last year, the revenue decreased by -2.20%.
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
The Earnings Per Share is expected to grow by 2.93% on average over the next years.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y-6.21%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
EPS Next 5Y2.93%
Revenue Next Year-2.29%
Revenue Next 2Y-0.41%
Revenue Next 3Y1.28%
Revenue Next 5Y2.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.21, which indicates a correct valuation of CAP.
75.38% of the companies in the same industry are more expensive than CAP, based on the Price/Earnings ratio.
CAP is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.72, the valuation of CAP can be described as correct.
CAP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, CAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAP is valued a bit more expensive than 60.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 10.55 |
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)0.92
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 1.94%.
Compared to an average industry Dividend Yield of 4.29, CAP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
CAP pays out 34.34% of its income as dividend. This is a sustainable payout ratio.
CAP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.34%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
CAPGEMINI SE
EPA:CAP (2/5/2025, 4:49:15 PM)
177.95
+0.6 (+0.34%)
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 Cap30.72B
Analysts80
Price Target207.63 (16.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend3.25
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)-1.43%
PT rev (3m)-7.82%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 14.72 | ||
| P/S | 1.38 | ||
| P/FCF | 12.44 | ||
| P/OCF | 11.22 | ||
| P/B | 2.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)12.52
EY7.04%
EPS(NY)12.09
Fwd EY6.79%
FCF(TTM)14.3
FCFY8.04%
OCF(TTM)15.86
OCFY8.91%
SpS128.81
BVpS62.82
TBVpS-7.84
PEG (NY)N/A
PEG (5Y)0.92
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 | 2.97 |
F-Score8
WACC6.56%
ROIC/WACC1.61
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-6.21%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
EPS Next 5Y2.93%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
Revenue Next Year-2.29%
Revenue Next 2Y-0.41%
Revenue Next 3Y1.28%
Revenue Next 5Y2.6%
EBIT growth 1Y-4.38%
EBIT growth 3Y13.7%
EBIT growth 5Y12.86%
EBIT Next Year24.35%
EBIT Next 3Y11.16%
EBIT Next 5Y7.04%
FCF growth 1Y19.97%
FCF growth 3Y15.91%
FCF growth 5Y14.33%
OCF growth 1Y14.76%
OCF growth 3Y14.98%
OCF growth 5Y12.58%