CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
FRA:CGM - Deutsche Boerse Ag - FR0000125338 - Common Stock - Currency: EUR
Overall CGM gets a fundamental rating of 5 out of 10. We evaluated CGM against 71 industry peers in the IT Services industry. CGM scores excellent on profitability, but there are some minor concerns on its financial health. CGM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CGM was profitable.
CGM had a positive operating cash flow in the past year.
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 (6.79%) is better than 75.38% of its industry peers.
The Return On Equity of CGM (15.58%) is better than 70.77% of its industry peers.
CGM has a Return On Invested Capital of 10.59%. This is in the better half of the industry: CGM outperforms 69.23% of its industry peers.
CGM had an Average Return On Invested Capital over the past 3 years of 9.72%. This is in line with the industry average of 10.97%.
The last Return On Invested Capital (10.59%) for CGM is above the 3 year average (9.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROIC | 10.59% |
ROA(3y)5.87%
ROA(5y)5.34%
ROE(3y)15.16%
ROE(5y)14.26%
ROIC(3y)9.72%
ROIC(5y)9.09%
1.3 Margins
Looking at the Profit Margin, with a value of 7.60%, CGM belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Profit Margin of CGM has grown nicely.
Looking at the Operating Margin, with a value of 11.49%, CGM belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
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 27.14% is on the low side compared to the rest of the industry. CGM is outperformed by 81.54% 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 | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% |
OM growth 3Y1.13%
OM growth 5Y1.42%
PM growth 3Y6.93%
PM growth 5Y5.95%
GM growth 3Y0.96%
GM growth 5Y-0.15%
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.
CGM has about the same amout of 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
An Altman-Z score of 2.92 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.92, CGM is doing good in the industry, outperforming 63.08% of the companies in the same industry.
The Debt to FCF ratio of CGM is 2.67, which is a good value as it means it would take CGM, 2.67 years of fcf income to pay off all of its debts.
CGM has a better Debt to FCF ratio (2.67) than 70.77% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that CGM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, CGM is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.62
WACC6.52%
2.3 Liquidity
CGM has a Current Ratio of 1.23. 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 of 1.23. This is comparable to the rest of the industry: CGM outperforms 49.23% of its industry peers.
CGM has a Quick Ratio of 1.23. 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 Quick ratio value of 1.23, CGM perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.16% over the past year.
The Earnings Per Share has been growing by 15.47% on average over the past years. This is quite good.
Looking at the last year, CGM shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
The Revenue has been growing by 11.28% on average over the past years. This is quite good.
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y15.47%
EPS Q2Q%1.38%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
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 2.93% on average per year.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.60% yearly.
EPS Next Y-6.21%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
EPS Next 5Y2.93%
Revenue Next Year-2.29%
Revenue Next 2Y-0.41%
Revenue Next 3Y1.28%
Revenue Next 5Y2.6%
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
A Price/Earnings ratio of 13.67 indicates a correct valuation of CGM.
Compared to the rest of the industry, the Price/Earnings ratio of CGM indicates a somewhat cheap valuation: CGM is cheaper than 76.92% of the companies listed in the same industry.
CGM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
CGM is valuated correctly with a Price/Forward Earnings ratio of 14.16.
Based on the Price/Forward Earnings ratio, CGM is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
CGM is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CGM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 10.22 |
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)0.88
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, CGM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.29, CGM has a dividend in line with its industry peers.
CGM's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of CGM grows each year by 13.86%, which is quite nice.
Dividend Growth(5Y)13.86%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CGM pays out 34.34% 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.
DP34.34%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
CAPGEMINI SE
FRA:CGM (2/3/2025, 7:00:00 PM)
171.15
-6.3 (-3.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners52.7%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap29.54B
Analysts80
Price Target208.64 (21.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend3.25
Dividend Growth(5Y)13.86%
DP34.34%
Div Incr Years2
Div Non Decr Years2
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)-1.11%
PT rev (3m)-7.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.33 | ||
| P/FCF | 11.97 | ||
| P/OCF | 10.79 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.22 |
EPS(TTM)12.52
EY7.32%
EPS(NY)12.09
Fwd EY7.06%
FCF(TTM)14.3
FCFY8.36%
OCF(TTM)15.86
OCFY9.26%
SpS128.81
BVpS62.82
TBVpS-7.84
PEG (NY)N/A
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROCE | 14.97% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.79% | ||
| ROICexgc | 93.4% | ||
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% | ||
| FCFM | 11.1% |
ROA(3y)5.87%
ROA(5y)5.34%
ROE(3y)15.16%
ROE(5y)14.26%
ROIC(3y)9.72%
ROIC(5y)9.09%
ROICexc(3y)13.78%
ROICexc(5y)13.18%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.75%
ROCE(5y)12.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.17%
ROICexc growth 3Y5.14%
ROICexc growth 5Y2.73%
OM growth 3Y1.13%
OM growth 5Y1.42%
PM growth 3Y6.93%
PM growth 5Y5.95%
GM growth 3Y0.96%
GM growth 5Y-0.15%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 38.62% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 13.1 | ||
| Cash Conversion | 84.24% | ||
| Profit Quality | 146.18% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.92 |
F-Score8
WACC6.52%
ROIC/WACC1.62
Cap/Depr(3y)38.97%
Cap/Depr(5y)37.88%
Cap/Sales(3y)1.31%
Cap/Sales(5y)1.36%
Profit Quality(3y)160.1%
Profit Quality(5y)163.2%
High Growth Momentum
Growth
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y15.47%
EPS Q2Q%1.38%
EPS Next Y-6.21%
EPS Next 2Y-1.43%
EPS Next 3Y1.77%
EPS Next 5Y2.93%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
Revenue Next Year-2.29%
Revenue Next 2Y-0.41%
Revenue Next 3Y1.28%
Revenue Next 5Y2.6%
EBIT growth 1Y-4.38%
EBIT growth 3Y13.7%
EBIT growth 5Y12.86%
EBIT Next Year24.35%
EBIT Next 3Y11.16%
EBIT Next 5Y7.04%
FCF growth 1Y19.97%
FCF growth 3Y15.91%
FCF growth 5Y14.33%
OCF growth 1Y14.76%
OCF growth 3Y14.98%
OCF growth 5Y12.58%