CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
Europe - EPA:CAP - FR0000125338 - Common Stock
127.05 EUR
+3.9 (+3.17%)
CAP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the IT Services industry. CAP has an excellent profitability rating, but there are some minor concerns on its financial health. CAP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CAP had positive earnings in the past year.
CAP had a positive operating cash flow in the past year.
In the past 5 years CAP has always 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 (6.40%) than 73.91% of its industry peers.
The Return On Equity of CAP (14.22%) is better than 65.22% of its industry peers.
The Return On Invested Capital of CAP (10.83%) is better than 71.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAP is in line with the industry average of 11.46%.
The 3 year average ROIC (10.47%) for CAP is below the current ROIC(10.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.22% | ||
| ROIC | 10.83% |
ROA(3y)6.44%
ROA(5y)5.7%
ROE(3y)15.33%
ROE(5y)15.07%
ROIC(3y)10.47%
ROIC(5y)9.56%
1.3 Margins
Looking at the Profit Margin, with a value of 7.07%, CAP belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
CAP's Profit Margin has improved in the last couple of years.
CAP's Operating Margin of 11.13% is amongst the best of the industry. CAP outperforms 84.06% of its industry peers.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
With a Gross Margin value of 27.26%, CAP is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
CAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 7.07% | ||
| GM | 27.26% |
OM growth 3Y0.34%
OM growth 5Y0.68%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3Y1.25%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAP is destroying value.
The number of shares outstanding for CAP has been reduced 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 2.59. 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's Altman-Z score of 2.59 is in line compared to the rest of the industry. CAP outperforms 53.62% of its industry peers.
CAP has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as CAP would need 2.85 years to pay back of all of its debts.
CAP's Debt to FCF ratio of 2.85 is fine compared to the rest of the industry. CAP outperforms 60.87% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CAP is not too dependend on debt financing.
The Debt to Equity ratio of CAP (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.91
WACC11.86%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CAP should not have too much problems paying its short term obligations.
The Current ratio of CAP (1.11) is worse than 60.87% of its industry peers.
CAP has a Quick Ratio of 1.11. This is a normal value and indicates that CAP is financially healthy and should not expect problems in meeting its short term obligations.
CAP has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.36%.
CAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
Looking at the last year, CAP shows a decrease in Revenue. The Revenue has decreased by -0.76% in the last year.
Measured over the past years, CAP shows a quite strong growth in Revenue. The Revenue has been growing by 9.36% on average per year.
EPS 1Y (TTM)-1.36%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%2.04%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
3.2 Future
The Earnings Per Share is expected to grow by 5.64% on average over the next years.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue Next Year-0.64%
Revenue Next 2Y1.35%
Revenue Next 3Y2.34%
Revenue Next 5Y4.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 10.29, the valuation of CAP can be described as very reasonable.
92.75% of the companies in the same industry are more expensive than CAP, based on the Price/Earnings ratio.
CAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
CAP is valuated reasonably with a Price/Forward Earnings ratio of 10.30.
CAP's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAP is cheaper than 81.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. CAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAP indicates a somewhat cheap valuation: CAP is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 7.87 |
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)0.82
EPS Next 2Y0.44%
EPS Next 3Y3.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, CAP has a reasonable but not impressive dividend return.
CAP's Dividend Yield is a higher than the industry average which is at 7.73.
Compared to an average S&P500 Dividend Yield of 2.38, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
On average, the dividend of CAP grows each year by 15.24%, which is quite nice.
Dividend Growth(5Y)15.24%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
37.31% 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.
DP37.31%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPA:CAP (9/18/2025, 5:36:15 PM)
127.05
+3.9 (+3.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners70.25%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.77B
Analysts80
Price Target182.17 (43.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP37.31%
Div Incr Years5
Div Non Decr Years7
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)-2.15%
PT rev (3m)-5.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.99 | ||
| P/FCF | 10.22 | ||
| P/OCF | 8.92 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)12.35
EY9.72%
EPS(NY)12.34
Fwd EY9.71%
FCF(TTM)12.43
FCFY9.78%
OCF(TTM)14.24
OCFY11.21%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.22% | ||
| ROCE | 15.04% | ||
| ROIC | 10.83% | ||
| ROICexc | 12.67% | ||
| ROICexgc | 109.35% | ||
| OM | 11.13% | ||
| PM (TTM) | 7.07% | ||
| GM | 27.26% | ||
| FCFM | 9.65% |
ROA(3y)6.44%
ROA(5y)5.7%
ROE(3y)15.33%
ROE(5y)15.07%
ROIC(3y)10.47%
ROIC(5y)9.56%
ROICexc(3y)14.12%
ROICexc(5y)13.2%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.54%
ROCE(5y)13.27%
ROICexcg growth 3Y-19.62%
ROICexcg growth 5Y-34.8%
ROICexc growth 3Y0.66%
ROICexc growth 5Y-1.74%
OM growth 3Y0.34%
OM growth 5Y0.68%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3Y1.25%
GM growth 5Y0.09%
F-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 44.67% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 15.07 | ||
| Cash Conversion | 77.46% | ||
| Profit Quality | 136.54% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.59 |
F-Score7
WACC11.86%
ROIC/WACC0.91
Cap/Depr(3y)41.15%
Cap/Depr(5y)38.96%
Cap/Sales(3y)1.3%
Cap/Sales(5y)1.33%
Profit Quality(3y)137.51%
Profit Quality(5y)152.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.36%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%2.04%
EPS Next Y-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year-0.64%
Revenue Next 2Y1.35%
Revenue Next 3Y2.34%
Revenue Next 5Y4.32%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.94%
FCF growth 1Y10.88%
FCF growth 3Y-1.52%
FCF growth 5Y7.06%
OCF growth 1Y11.31%
OCF growth 3Y-0.72%
OCF growth 5Y7.08%