CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
138.05 EUR
+1.8 (+1.32%)
Overall CGM gets a fundamental rating of 5 out of 10. We evaluated CGM against 72 industry peers in the IT Services industry. Both the profitability and the financial health of CGM get a neutral evaluation. Nothing too spectacular is happening here. CGM 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 CGM was profitable.
CGM had a positive operating cash flow in the past year.
In the past 5 years CGM has always been profitable.
In the past 5 years CGM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.40%, CGM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
The Return On Equity of CGM (14.22%) is better than 65.28% of its industry peers.
With a decent Return On Invested Capital value of 10.83%, CGM is doing good in the industry, outperforming 68.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CGM is significantly below the industry average of 27.45%.
The last Return On Invested Capital (10.83%) for CGM is above the 3 year average (10.47%), which is a sign of increasing profitability.
| 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 76.39% of its industry peers.
CGM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.13%, CGM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
The Gross Margin of CGM (27.26%) is worse than 76.39% of its industry peers.
CGM'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
CGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CGM has been reduced compared to 1 year ago.
Compared to 5 years ago, CGM has more shares outstanding
Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that CGM 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 2.71, CGM is in line with its industry, outperforming 51.39% of the companies in the same 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.
CGM has a better Debt to FCF ratio (2.85) than 65.28% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.37, CGM is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.88
WACC12.27%
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 40.28% of the companies in the same industry.
CGM has a Quick Ratio of 1.11. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.11, CGM perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.36%.
CGM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
CGM shows a decrease in Revenue. In the last year, the revenue decreased by -0.76%.
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
The Earnings Per Share is expected to grow by 6.27% on average over the next years.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.27%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 11.18, the valuation of CGM can be described as reasonable.
Based on the Price/Earnings ratio, CGM is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. CGM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of CGM.
Based on the Price/Forward Earnings ratio, CGM is valued a bit cheaper than 79.17% of the companies in the same industry.
CGM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA ratio is in line with the industry average.
63.89% of the companies in the same industry are more expensive than CGM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y1.71%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 3.78, CGM pays a bit more dividend than its industry peers.
CGM's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 (12/2/2025, 7:00:00 PM)
138.05
+1.8 (+1.32%)
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 Cap23.65B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target181.75 (31.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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)-0.12%
PT rev (3m)-1.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.07 | ||
| P/FCF | 11.11 | ||
| P/OCF | 9.69 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)12.35
EY8.95%
EPS(NY)12.65
Fwd EY9.16%
FCF(TTM)12.43
FCFY9%
OCF(TTM)14.24
OCFY10.32%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.89
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 | 2.71 |
F-Score7
WACC12.27%
ROIC/WACC0.88
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 5Y6.27%
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 6 / 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 11.18 and the Price/Book (PB) ratio is 2.16.
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%.