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. CAP scores excellent on profitability, but there are some minor concerns on its financial health. CAP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CAP was profitable.
CAP had a positive operating cash flow in the past year.
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 (6.51%) is better than 76.06% of its industry peers.
CAP has a Return On Equity of 14.19%. This is in the better half of the industry: CAP outperforms 61.97% of its industry peers.
CAP has a better Return On Invested Capital (10.16%) than 71.83% of its industry peers.
CAP had an Average Return On Invested Capital over the past 3 years of 10.47%. This is in line with the industry average of 10.64%.
| 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 83.10% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
CAP has a Operating Margin of 11.46%. This is amongst the best in the industry. CAP outperforms 85.92% of its industry peers.
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 70.42% 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 | 11.46% | ||
| 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) below the Cost of Capital (WACC), CAP is destroying value.
CAP has less shares outstanding than it did 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 2.73. 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.
Looking at the Altman-Z score, with a value of 2.73, CAP is in line with its industry, outperforming 50.70% 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's Debt to FCF ratio of 2.75 is in line compared to the rest of the industry. CAP outperforms 57.75% of its industry peers.
CAP has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CAP (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.83
WACC12.24%
2.3 Liquidity
A Current Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, CAP is in line with its industry, outperforming 47.89% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, CAP perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
CAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
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
The Earnings Per Share is expected to grow by 4.82% on average over the next years.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y4.82%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y3.74%
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 11.88, the valuation of CAP can be described as very reasonable.
Based on the Price/Earnings ratio, CAP is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
CAP is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.24 indicates a correct valuation of CAP.
Based on the Price/Forward Earnings ratio, CAP is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CAP to the average of the S&P500 Index (21.76), we can say CAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CAP is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.26 | ||
| EV/EBITDA | 8.68 |
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)0.94
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, CAP has a reasonable but not impressive dividend return.
CAP's Dividend Yield is a higher than the industry average which is at 6.93.
Compared to an average S&P500 Dividend Yield of 2.42, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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 Years7
5.3 Sustainability
34.95% of the earnings are spent on dividend by CAP. This is a low number and 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 (7/2/2025, 7:00:00 PM)
145.3
+0.1 (+0.07%)
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 Cap24.90B
Analysts80
Price Target192 (32.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
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)-0.49%
PT rev (3m)-7.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 12.24 | ||
| P/S | 1.13 | ||
| P/FCF | 11.26 | ||
| P/OCF | 9.86 | ||
| P/B | 2.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)12.23
EY8.42%
EPS(NY)11.87
Fwd EY8.17%
FCF(TTM)12.9
FCFY8.88%
OCF(TTM)14.74
OCFY10.15%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.94
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 | 2.73 |
F-Score6
WACC12.24%
ROIC/WACC0.83
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 5Y4.82%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y3.74%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.35%
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%