CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
144.75 EUR
+1.8 (+1.26%)
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 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 on the other hand it scores bad on growth.
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
CGM has a better Return On Assets (6.40%) than 69.86% of its industry peers.
CGM has a Return On Equity of 14.22%. This is in the better half of the industry: CGM outperforms 65.75% of its industry peers.
CGM has a better Return On Invested Capital (10.83%) than 67.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 7.07%, CGM is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
CGM's Profit Margin has improved in the last couple of years.
CGM has a Operating Margin of 11.13%. This is in the better half of the industry: CGM outperforms 78.08% of its industry peers.
CGM's Operating Margin has been stable in the last couple of years.
CGM has a worse Gross Margin (27.26%) than 76.71% 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.
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
CGM has a better debt/assets ratio than last year.
2.2 Solvency
CGM has an Altman-Z score of 2.76. 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 (2.76) 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.
The Debt to FCF ratio of CGM (2.85) is better than 65.75% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, CGM perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.88
WACC12.37%
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.
CGM has a Current ratio (1.11) which is comparable to the rest of the 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
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.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y-3.37%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.27%
Revenue Next Year1.09%
Revenue Next 2Y3.69%
Revenue Next 3Y3.98%
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
Based on the Price/Earnings ratio of 11.72, the valuation of CGM can be described as reasonable.
86.30% 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 (26.46), we can say CGM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.27, the valuation of CGM can be described as reasonable.
CGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CGM is cheaper than 76.71% 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 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CGM is valued a bit cheaper than the industry average as 63.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.64 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y2.49%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.76, 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 | 2.38% |
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.
The dividend of CGM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
FRA:CGM (12/5/2025, 7:00:00 PM)
144.75
+1.8 (+1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.06%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap24.80B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80.91
Price Target182.07 (25.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)-1.86%
PT rev (3m)-2.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 11.27 | ||
| P/S | 1.12 | ||
| P/FCF | 11.64 | ||
| P/OCF | 10.17 | ||
| P/B | 2.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)12.35
EY8.53%
EPS(NY)12.85
Fwd EY8.88%
FCF(TTM)12.43
FCFY8.59%
OCF(TTM)14.24
OCFY9.84%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.93
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 | 2.76 |
F-Score7
WACC12.37%
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-3.37%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.27%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year1.09%
Revenue Next 2Y3.69%
Revenue Next 3Y3.98%
Revenue Next 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year26.75%
EBIT Next 3Y13.57%
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 11.72 and the Price/Book (PB) ratio is 2.26.
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%.