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 70 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
In the past year CAP was profitable.
CAP had a positive operating cash flow in the past year.
CAP had positive earnings in each of the past 5 years.
CAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAP has a Return On Assets of 6.51%. This is in the better half of the industry: CAP outperforms 74.29% of its industry peers.
CAP's Return On Equity of 14.19% is fine compared to the rest of the industry. CAP outperforms 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.16%, CAP is in the better half of the industry, outperforming 70.00% 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 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.19% | ||
| ROIC | 10.16% |
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
The Profit Margin of CAP (7.56%) is better than 84.29% of its industry peers.
CAP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.46%, CAP belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
CAP's Operating Margin has been stable in the last couple of years.
CAP's Gross Margin of 27.39% is on the low side compared to the rest of the industry. CAP is outperformed by 74.29% of its industry peers.
CAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 7.56% | ||
| GM | 27.39% |
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) just above the Cost of Capital (WACC), CAP is creating some value.
The number of shares outstanding for CAP has been reduced compared to 1 year ago.
Compared to 5 years ago, CAP has more shares outstanding
Compared to 1 year ago, CAP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 indicates that CAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, CAP is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of CAP is 2.75, which is a good value as it means it would take CAP, 2.75 years of fcf income to pay off all of its debts.
CAP has a Debt to FCF ratio of 2.75. This is in the better half of the industry: CAP outperforms 62.86% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CAP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, CAP is in line with its industry, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.51
WACC6.72%
2.3 Liquidity
CAP has a Current Ratio of 1.21. 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 Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, CAP is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for CAP have decreased by -1.69% in the last year.
CAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
CAP shows a decrease in Revenue. In the last year, the revenue decreased by -1.89%.
CAP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.36% yearly.
EPS 1Y (TTM)-1.69%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%-4.37%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
3.2 Future
CAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.79% yearly.
Based on estimates for the next years, CAP will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y3.79%
Revenue Next Year0.78%
Revenue Next 2Y2.16%
Revenue Next 3Y3.13%
Revenue Next 5Y3.05%
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
With a Price/Earnings ratio of 11.28, the valuation of CAP can be described as very reasonable.
Based on the Price/Earnings ratio, CAP is valued cheaply inside the industry as 87.14% of the companies are valued more expensively.
CAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
The Price/Forward Earnings ratio is 11.62, which indicates a very decent valuation of CAP.
Based on the Price/Forward Earnings ratio, CAP is valued a bit cheaper than the industry average as 75.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, CAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 11.62 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 7.9 |
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)0.9
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.58%.
In the last 3 months the price of CAP has falen by -25.77%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.37, CAP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of CAP is nicely growing with an annual growth rate of 15.24%!
Dividend Growth(5Y)15.24%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
CAP pays out 34.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of CAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.95%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPA:CAP (4/29/2025, 5:36:15 PM)
138
+7.4 (+5.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.74%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap23.65B
Analysts79.2
Price Target196.92 (42.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
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)-5.26%
PT rev (3m)-6.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-4.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.07 | ||
| P/FCF | 10.69 | ||
| P/OCF | 9.36 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)12.23
EY8.86%
EPS(NY)11.87
Fwd EY8.6%
FCF(TTM)12.9
FCFY9.35%
OCF(TTM)14.74
OCFY10.68%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.19% | ||
| ROCE | 14.11% | ||
| ROIC | 10.16% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 106.3% | ||
| OM | 11.46% | ||
| PM (TTM) | 7.56% | ||
| GM | 27.39% | ||
| FCFM | 10.01% |
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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 46.12% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 14.89 | ||
| Cash Conversion | 78.57% | ||
| Profit Quality | 132.32% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.62 |
F-Score6
WACC6.72%
ROIC/WACC1.51
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)-1.69%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%-4.37%
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y3.79%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year0.78%
Revenue Next 2Y2.16%
Revenue Next 3Y3.13%
Revenue Next 5Y3.05%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year29.62%
EBIT Next 3Y12.88%
EBIT Next 5Y7.32%
FCF growth 1Y-2.43%
FCF growth 3Y-1.52%
FCF growth 5Y7.06%
OCF growth 1Y0.04%
OCF growth 3Y-0.72%
OCF growth 5Y7.08%