CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - FRA:CGM - FR0000125338 - Common Stock
127.4 EUR
+3.8 (+3.07%)
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the IT Services industry. CGM has an excellent profitability rating, but 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
In the past year CGM was profitable.
In the past year CGM had a positive cash flow from operations.
Each year in the past 5 years CGM has been profitable.
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 72.46% of the companies in the same industry.
CGM has a Return On Equity of 14.22%. This is in the better half of the industry: CGM outperforms 63.77% of its industry peers.
CGM's Return On Invested Capital of 10.83% is fine compared to the rest of the industry. CGM outperforms 69.57% of its industry peers.
CGM had an Average Return On Invested Capital over the past 3 years of 10.47%. This is in line with the industry average of 11.46%.
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
With a decent Profit Margin value of 7.07%, CGM is doing good in the industry, outperforming 79.71% of the companies in the same industry.
CGM's Profit Margin has improved in the last couple of years.
CGM's Operating Margin of 11.13% is amongst the best of the industry. CGM outperforms 82.61% of its industry peers.
CGM's Operating Margin has been stable in the last couple of years.
The Gross Margin of CGM (27.26%) is worse than 69.57% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGM is destroying value.
CGM has less shares outstanding than it did 1 year ago.
CGM has more shares outstanding than it did 5 years ago.
CGM has a better debt/assets ratio than last year.
2.2 Solvency
CGM has an Altman-Z score of 2.62. This is not the best score and indicates that CGM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CGM (2.62) is comparable to the rest of the industry.
CGM has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as CGM would need 2.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, CGM is in line with its industry, outperforming 59.42% of the companies in the same industry.
CGM has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CGM has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: CGM outperforms 53.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.91
WACC11.94%
2.3 Liquidity
CGM has a Current 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 Current ratio value of 1.11, CGM is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, CGM is in line with its industry, outperforming 43.48% of the companies in the same 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.
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 -0.76% in the past year.
The Revenue has been growing by 9.36% on average over the past years. This is quite good.
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 5.64% on average per year.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue Next Year-0.64%
Revenue Next 2Y1.35%
Revenue Next 3Y2.34%
Revenue Next 5Y4.32%
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
CGM is valuated reasonably with a Price/Earnings ratio of 10.32.
Based on the Price/Earnings ratio, CGM is valued cheaper than 91.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, CGM is valued rather cheaply.
CGM is valuated reasonably with a Price/Forward Earnings ratio of 10.33.
79.71% of the companies in the same industry are more expensive than CGM, based on the Price/Forward Earnings ratio.
CGM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGM is on the same level as its industry peers.
CGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CGM is cheaper than 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 8.1 |
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 2Y0.44%
EPS Next 3Y3.15%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.73, CGM pays a bit more dividend than its industry peers.
CGM's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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 37.31% 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.
DP37.31%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
FRA:CGM (9/18/2025, 7:00:00 PM)
127.4
+3.8 (+3.07%)
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 Cap21.83B
Analysts80
Price Target182.17 (42.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-2.31%
PT rev (3m)-5.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.99 | ||
| P/FCF | 10.25 | ||
| P/OCF | 8.95 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)12.35
EY9.69%
EPS(NY)12.34
Fwd EY9.68%
FCF(TTM)12.43
FCFY9.76%
OCF(TTM)14.24
OCFY11.18%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.82
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%
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-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 | 2.62 |
F-Score7
WACC11.94%
ROIC/WACC0.91
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-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year-0.64%
Revenue Next 2Y1.35%
Revenue Next 3Y2.34%
Revenue Next 5Y4.32%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.94%
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%