CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
133.25 EUR
+0.35 (+0.26%)
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the IT Services industry. CGM scores excellent on profitability, but 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.
CGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.40%, CGM is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.22%, CGM is in the better half of the industry, outperforming 66.67% 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 72.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGM is in line with the industry average of 11.90%.
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 Profit Margin of 7.07%. This is in the better half of the industry: CGM outperforms 79.17% of its industry peers.
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 80.56% 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's Gross Margin of 27.26% is on the low side compared to the rest of the industry. CGM is outperformed by 73.61% 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
CGM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
CGM has an Altman-Z score of 2.67. 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 has a Altman-Z score (2.67) 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.
The Debt to FCF ratio of CGM (2.85) is better than 68.06% 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's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. CGM outperforms 56.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.61
WACC6.74%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, CGM perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
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 47.22% 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 6.26% on average per year.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.26%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
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.
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 10.79.
Based on the Price/Earnings ratio, CGM is valued cheaper than 88.89% of the companies in the same industry.
CGM is valuated cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of CGM.
80.56% 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 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.53 |
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 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y1.71%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, CGM has a reasonable but not impressive dividend return.
CGM's Dividend Yield is a higher than the industry average which is at 3.92.
CGM's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 2Y1.71%
EPS Next 3Y4.12%
FRA:CGM (11/24/2025, 7:00:00 PM)
133.25
+0.35 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap22.83B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target181.75 (36.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-1.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.03 | ||
| P/FCF | 10.72 | ||
| P/OCF | 9.36 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)12.35
EY9.27%
EPS(NY)12.65
Fwd EY9.49%
FCF(TTM)12.43
FCFY9.33%
OCF(TTM)14.24
OCFY10.69%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.86
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 | 2.67 |
F-Score7
WACC6.74%
ROIC/WACC1.61
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-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.26%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year26.42%
EBIT Next 3Y11.59%
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 7 / 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 10.79 and the Price/Book (PB) ratio is 2.08.
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%.