CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
144.35 EUR
-6.8 (-4.5%)
Overall CGM gets a fundamental rating of 5 out of 10. We evaluated CGM against 76 industry peers in the IT Services industry. While CGM has a great profitability rating, there are some minor concerns on its financial health. 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.
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 68.42% of its industry peers.
Looking at the Return On Equity, with a value of 14.22%, CGM is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
CGM's Return On Invested Capital of 10.83% is fine compared to the rest of the industry. CGM outperforms 71.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGM is significantly below the industry average of 25.87%.
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 78.95% of its industry peers.
CGM's Profit Margin has improved in the last couple of years.
CGM has a Operating Margin of 11.13%. This is amongst the best in the industry. CGM outperforms 80.26% of its industry peers.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
CGM has a Gross Margin of 27.26%. This is in the lower half of the industry: CGM underperforms 72.37% 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
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.
CGM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
CGM has an Altman-Z score of 2.75. 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.
CGM's Altman-Z score of 2.75 is in line compared to the rest of the industry. CGM outperforms 50.00% of its industry peers.
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.
CGM has a Debt to FCF ratio of 2.85. This is in the better half of the industry: CGM outperforms 67.11% 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 (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.59
WACC6.83%
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 Current ratio (1.11) which is in line with 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.
Looking at the Quick ratio, with a value of 1.11, CGM is in line with its industry, outperforming 46.05% 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.
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.
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
Based on estimates for the next years, CGM will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
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
Based on the Price/Earnings ratio of 11.69, the valuation of CGM can be described as reasonable.
CGM's Price/Earnings ratio is rather cheap when compared to the industry. CGM is cheaper than 88.16% 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.
The Price/Forward Earnings ratio is 11.30, which indicates a very decent valuation of CGM.
82.89% of the companies in the same industry are more expensive than CGM, based on the Price/Forward Earnings ratio.
CGM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CGM is valued a bit cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
CGM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.26, CGM pays a bit more dividend than its industry peers.
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
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 2Y2.2%
EPS Next 3Y4.35%
FRA:CGM (1/12/2026, 7:00:00 PM)
144.35
-6.8 (-4.5%)
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 Cap24.73B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target182.28 (26.28%)
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 | 11.69 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.12 | ||
| P/FCF | 11.61 | ||
| P/OCF | 10.14 | ||
| P/B | 2.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.03 |
EPS(TTM)12.35
EY8.56%
EPS(NY)12.77
Fwd EY8.85%
FCF(TTM)12.43
FCFY8.61%
OCF(TTM)14.24
OCFY9.86%
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 | 2.75 |
F-Score7
WACC6.83%
ROIC/WACC1.59
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 7 / 10.
Can you provide the PE and PB ratios for CGM stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 11.69 and the Price/Book (PB) ratio is 2.25.
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%.