CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
151.15 EUR
+3.9 (+2.65%)
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 76 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
CGM had positive earnings in the past year.
In the past year CGM had a positive cash flow from operations.
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
The Return On Assets of CGM (6.40%) is better than 67.11% of its industry peers.
With a decent Return On Equity value of 14.22%, CGM is doing good in the industry, outperforming 65.79% of the companies in the same industry.
The Return On Invested Capital of CGM (10.83%) is better than 69.74% 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 25.87%.
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 Profit Margin of 7.07%. This is in the better half of the industry: CGM outperforms 77.63% of its industry peers.
In the last couple of years the Profit Margin of CGM has grown nicely.
CGM has a Operating Margin of 11.13%. This is in the better half of the industry: CGM outperforms 78.95% 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 73.68% 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 just above the Cost of Capital (WACC), so CGM is still creating some value.
The number of shares outstanding for CGM has been reduced compared to 1 year ago.
The number of shares outstanding for CGM has been increased compared to 5 years ago.
Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.81 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
CGM has a Altman-Z score (2.81) 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.
CGM has a better Debt to FCF ratio (2.85) than 65.79% of its industry peers.
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 56.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.58
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
CGM has a worse Current ratio (1.11) than 60.53% of its industry peers.
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.
CGM's Quick ratio of 1.11 is in line compared to the rest of the industry. CGM outperforms 44.74% of its industry peers.
| 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.
Measured over the past years, CGM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.59% on average per year.
The Revenue has decreased by -0.76% 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)-1.36%
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 5.31% on average over the next years.
The Revenue is expected to grow by 4.41% on average over the next years.
EPS Next Y-3.63%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
EPS Next 5Y5.31%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
Revenue Next 5Y4.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 correctly with a Price/Earnings ratio of 12.24.
Based on the Price/Earnings ratio, CGM is valued cheaper than 86.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. CGM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.83 indicates a reasonable valuation of CGM.
80.26% 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 (23.98), we can say CGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGM.
Based on the Price/Free Cash Flow ratio, CGM is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.31%.
CGM's Dividend Yield is a higher than the industry average which is at 2.26.
CGM's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
On average, the dividend of CGM grows each year by 15.24%, which is quite nice.
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 2Y2.2%
EPS Next 3Y4.35%
FRA:CGM (1/9/2026, 7:00:00 PM)
151.15
+3.9 (+2.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners73.56%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap25.90B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target182.28 (20.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)0.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.27%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.83 | ||
| P/S | 1.17 | ||
| P/FCF | 12.16 | ||
| P/OCF | 10.61 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)12.35
EY8.17%
EPS(NY)12.77
Fwd EY8.45%
FCF(TTM)12.43
FCFY8.22%
OCF(TTM)14.24
OCFY9.42%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.97
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 | 2.81 |
F-Score7
WACC6.87%
ROIC/WACC1.58
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-3.63%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
EPS Next 5Y5.31%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
Revenue Next 5Y4.41%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.15%
EBIT Next 3Y13.5%
EBIT Next 5Y8.74%
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.
What is the valuation status of CAPGEMINI SE (CGM.DE) stock?
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.
Can you provide the PE and PB ratios for CGM stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 12.24 and the Price/Book (PB) ratio is 2.36.
Is the dividend of CAPGEMINI SE sustainable?
The dividend rating of CAPGEMINI SE (CGM.DE) is 6 / 10 and the dividend payout ratio is 37.31%.