CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - FRA:CGM - FR0000125338 - Common Stock
127.7 EUR
-5.8 (-4.34%)
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 72 industry peers in the IT Services industry. While CGM has a great profitability rating, there are some minor concerns on its financial health. CGM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CGM had positive earnings in the past year.
CGM had a positive operating cash flow in the past year.
CGM had positive earnings in each of the past 5 years.
Each year in the past 5 years CGM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.40%, CGM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
The Return On Equity of CGM (14.22%) is better than 68.06% of its industry peers.
CGM has a better Return On Invested Capital (10.83%) than 73.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGM is in line with the industry average of 11.33%.
The 3 year average ROIC (10.47%) for CGM 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
CGM has a better Profit Margin (7.07%) than 77.78% of its industry peers.
In the last couple of years the Profit Margin of CGM has grown nicely.
The Operating Margin of CGM (11.13%) is better than 79.17% of its industry peers.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
CGM has a Gross Margin of 27.26%. This is in the lower half of the industry: CGM underperforms 70.83% of its industry peers.
In the last couple of years the Gross Margin of CGM has remained more or less at the same level.
| 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) just above the Cost of Capital (WACC), CGM is creating some value.
Compared to 1 year ago, CGM has less shares outstanding
The number of shares outstanding for CGM has been increased compared to 5 years ago.
The debt/assets ratio for CGM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
CGM has a Altman-Z score (2.63) which is comparable to the rest of the industry.
The Debt to FCF ratio of CGM is 2.85, which is a good value as it means it would take CGM, 2.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, CGM is in the better half of the industry, outperforming 65.28% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
CGM has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: CGM outperforms 52.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.6
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.11, CGM is in line with its industry, outperforming 43.06% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
CGM 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
The earnings per share for CGM have decreased by -1.36% in the last year.
CGM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
The Revenue has decreased by -0.76% in the past year.
Measured over the past years, CGM 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
Based on estimates for the next years, CGM will show a small growth in Earnings Per Share. The EPS will grow by 6.26% on average per year.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.26%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
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
CGM is valuated reasonably with a Price/Earnings ratio of 10.34.
90.28% of the companies in the same industry are more expensive than CGM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CGM to the average of the S&P500 Index (25.51), we can say CGM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.09, the valuation of CGM can be described as very reasonable.
80.56% of the companies in the same industry are more expensive than CGM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CGM to the average of the S&P500 Index (34.98), we can say CGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGM.
CGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CGM is cheaper than 68.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y1.71%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.53%.
CGM's Dividend Yield is a higher than the industry average which is at 3.84.
Compared to an average S&P500 Dividend Yield of 2.44, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of CGM is nicely growing with an annual growth rate of 15.24%!
Dividend Growth(5Y)15.24%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
37.31% of the earnings are spent on dividend by CGM. This is a low number and sustainable payout ratio.
CGM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
FRA:CGM (11/18/2025, 7:00:00 PM)
127.7
-5.8 (-4.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.88B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target178.95 (40.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP37.31%
Div Incr Years2
Div Non Decr Years3
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)-1.66%
PT rev (3m)-4.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.09 | ||
| P/S | 0.99 | ||
| P/FCF | 10.27 | ||
| P/OCF | 8.97 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.12 |
EPS(TTM)12.35
EY9.67%
EPS(NY)12.65
Fwd EY9.91%
FCF(TTM)12.43
FCFY9.73%
OCF(TTM)14.24
OCFY11.15%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.82
Graham Number133.39
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%
ROICexgc growth 3Y-19.62%
ROICexgc 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 | 2.63 |
F-Score7
WACC6.75%
ROIC/WACC1.6
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-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.26%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year26.42%
EBIT Next 3Y11.59%
EBIT Next 5Y9.06%
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%
CAPGEMINI SE / CGM.DE FAQ
What is the fundamental rating for CGM stock?
ChartMill assigns a fundamental rating of 5 / 10 to CGM.DE.
Can you provide the valuation status for CAPGEMINI SE?
ChartMill assigns a valuation rating of 6 / 10 to CAPGEMINI SE (CGM.DE). This can be considered as Fairly Valued.
What is the profitability of CGM stock?
CAPGEMINI SE (CGM.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CAPGEMINI SE (CGM.DE) stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 10.34 and the Price/Book (PB) ratio is 1.99.
Can you provide the dividend sustainability for CGM stock?
The dividend rating of CAPGEMINI SE (CGM.DE) is 5 / 10 and the dividend payout ratio is 37.31%.