CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
FRA:CGM - Deutsche Boerse Ag - FR0000125338 - Common Stock - Currency: EUR
Overall CGM gets a fundamental rating of 5 out of 10. We evaluated CGM against 74 industry peers in the IT Services industry. CGM has an average financial health and profitability rating. 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.
CGM had positive earnings in each of the past 5 years.
In the past 5 years CGM always reported a positive cash flow from operatings.
1.2 Ratios
CGM has a better Return On Assets (6.51%) than 72.97% of its industry peers.
CGM has a Return On Equity of 14.19%. This is in the better half of the industry: CGM outperforms 64.86% of its industry peers.
CGM has a better Return On Invested Capital (10.16%) than 68.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGM is significantly below the industry average of 20.68%.
| 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
CGM has a Profit Margin of 7.56%. This is in the better half of the industry: CGM outperforms 79.73% of its industry peers.
In the last couple of years the Profit Margin of CGM has grown nicely.
With an excellent Operating Margin value of 11.46%, CGM belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
CGM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 27.39%, CGM is doing worse than 70.27% of the companies in the same industry.
CGM'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CGM is still creating some value.
Compared to 1 year ago, CGM has less shares outstanding
CGM has more shares outstanding than it did 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 2.74 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
CGM has a Altman-Z score (2.74) which is comparable to the rest of the industry.
The Debt to FCF ratio of CGM is 2.75, which is a good value as it means it would take CGM, 2.75 years of fcf income to pay off all of its debts.
CGM has a Debt to FCF ratio (2.75) which is in line with its industry peers.
A Debt/Equity ratio of 0.42 indicates that CGM is not too dependend on debt financing.
CGM has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: CGM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.52
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.21 indicates that CGM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, CGM is in line with its industry, outperforming 48.65% of the companies in the same industry.
CGM has a Quick Ratio of 1.21. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
CGM has a Quick ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
CGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
The Earnings Per Share has been growing by 12.59% on average over the past years. This is quite good.
The Revenue has decreased by -1.89% in the past year.
CGM 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.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
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
A Price/Earnings ratio of 12.04 indicates a correct valuation of CGM.
Based on the Price/Earnings ratio, CGM is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. CGM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.40, which indicates a correct valuation of CGM.
Based on the Price/Forward Earnings ratio, CGM is valued a bit cheaper than 74.32% of the companies in the same industry.
CGM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA is on the same level as the industry average.
64.86% 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 | 11.41 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
CGM's Dividend Yield is a higher than the industry average which is at 6.92.
CGM's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
CGM pays out 34.95% of its income as dividend. This is a sustainable payout ratio.
CGM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.95%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
FRA:CGM (7/10/2025, 7:00:00 PM)
147.2
+2.1 (+1.45%)
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 Cap25.22B
Analysts80
Price Target193.38 (31.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
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%
PT rev (3m)-7.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
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 | 12.04 | ||
| Fwd PE | 12.4 | ||
| P/S | 1.14 | ||
| P/FCF | 11.41 | ||
| P/OCF | 9.99 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.78 |
EPS(TTM)12.23
EY8.31%
EPS(NY)11.87
Fwd EY8.06%
FCF(TTM)12.9
FCFY8.77%
OCF(TTM)14.74
OCFY10.01%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.96
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 | 2.74 |
F-Score6
WACC6.7%
ROIC/WACC1.52
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%