CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
EPA:CAP - Euronext Paris - Matif - FR0000125338 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CAP. CAP was compared to 75 industry peers in the IT Services industry. CAP has only an average score on both its financial health and profitability. CAP has a correct valuation and a medium growth rate.
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.
CAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CAP has a better Return On Assets (6.79%) than 76.00% of its industry peers.
CAP has a better Return On Equity (15.58%) than 72.00% of its industry peers.
With a decent Return On Invested Capital value of 10.78%, CAP is doing good in the industry, outperforming 70.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROIC | 10.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CAP has a better Profit Margin (7.60%) than 82.67% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
With an excellent Operating Margin value of 11.49%, CAP belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
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 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% |
OM growth 3Y-2.04%
OM growth 5Y-0.76%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3YN/A
GM growth 5YN/A
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.
There is no outstanding debt for CAP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.79 indicates that CAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAP's Altman-Z score of 2.79 is fine compared to the rest of the industry. CAP outperforms 65.33% 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.
Looking at the Debt to FCF ratio, with a value of 2.67, CAP is in the better half of the industry, outperforming 69.33% of the companies in the same industry.
CAP has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CAP (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.62
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
CAP's Current ratio of 1.23 is in line compared to the rest of the industry. CAP outperforms 56.00% of its industry peers.
A Quick Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.23, CAP is in the better half of the industry, outperforming 65.33% of the companies in the same industry.
| 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 1.08% 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 13.64% on average per year.
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)1.08%
EPS 3Y12.52%
EPS 5Y13.64%
EPS Q2Q%-1.41%
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 6.27% on average over the next years.
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y3.11%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y6.27%
Revenue Next Year1.8%
Revenue Next 2Y2.99%
Revenue Next 3Y3.9%
Revenue Next 5Y4.15%
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
A Price/Earnings ratio of 16.24 indicates a correct valuation of CAP.
Based on the Price/Earnings ratio, CAP is valued a bit cheaper than the industry average as 69.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. CAP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.78, CAP is valued correctly.
CAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAP is cheaper than 70.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAP to the average of the S&P500 Index (22.10), we can say CAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 12.78 |
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.
CAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAP is cheaper than 62.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CAP may justify a higher PE ratio.
PEG (NY)5.23
PEG (5Y)1.19
EPS Next 2Y5.41%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 4.27, CAP has a dividend in line with its industry peers.
CAP's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of CAP grows each year by 13.86%, which is quite nice.
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 2Y5.41%
EPS Next 3Y6.25%
EPA:CAP (3/7/2025, 7:00:00 PM)
153.75
-3.4 (-2.16%)
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 Cap26.35B
Analysts79.2
Price Target207.85 (35.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)0.11%
PT rev (3m)-1.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-3.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 12.78 | ||
| P/S | 1.18 | ||
| P/FCF | 10.67 | ||
| P/OCF | 9.63 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.23 |
EPS(TTM)9.47
EY6.16%
EPS(NY)12.03
Fwd EY7.83%
FCF(TTM)14.41
FCFY9.37%
OCF(TTM)15.97
OCFY10.39%
SpS129.76
BVpS63.28
TBVpS-7.9
PEG (NY)5.23
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROCE | 14.97% | ||
| ROIC | 10.78% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 95.12% | ||
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% | ||
| FCFM | 11.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.04%
OM growth 5Y-0.76%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
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 | 2.79 |
F-Score6
WACC6.66%
ROIC/WACC1.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.08%
EPS 3Y12.52%
EPS 5Y13.64%
EPS Q2Q%-1.41%
EPS Next Y3.11%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y6.27%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year1.8%
Revenue Next 2Y2.99%
Revenue Next 3Y3.9%
Revenue Next 5Y4.15%
EBIT growth 1Y-4.38%
EBIT growth 3Y4.58%
EBIT growth 5Y8.53%
EBIT Next Year30.9%
EBIT Next 3Y12.25%
EBIT Next 5Y8.7%
FCF growth 1Y28.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.86%
OCF growth 3YN/A
OCF growth 5YN/A