CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
FRA:CGM - Deutsche Boerse Ag - FR0000125338 - Common Stock - Currency: EUR
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the IT Services industry. CGM has only an average score on both its financial health and profitability. CGM has a decent growth rate and is not valued too expensively.
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 4 of the past 5 years.
1.2 Ratios
CGM's Return On Assets of 6.79% is fine compared to the rest of the industry. CGM outperforms 77.33% of its industry peers.
CGM's Return On Equity of 15.58% is fine compared to the rest of the industry. CGM outperforms 73.33% of its industry peers.
CGM has a better Return On Invested Capital (10.78%) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROIC | 10.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CGM (7.60%) is better than 84.00% of its industry peers.
CGM's Profit Margin has improved in the last couple of years.
The Operating Margin of CGM (11.49%) is better than 85.33% of its industry peers.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
The Gross Margin of CGM (27.14%) is worse than 70.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% |
OM growth 3Y-2.04%
OM growth 5Y-0.76%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3YN/A
GM growth 5YN/A
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.
CGM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CGM has an Altman-Z score of 2.79. 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 of 2.79. This is in the better half of the industry: CGM outperforms 66.67% of its industry peers.
CGM has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as CGM would need 2.67 years to pay back of all of its debts.
CGM has a Debt to FCF ratio of 2.67. This is in the better half of the industry: CGM outperforms 70.67% of its industry peers.
CGM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, CGM perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.62
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CGM should not have too much problems paying its short term obligations.
CGM has a Current ratio (1.23) which is in line with 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.
CGM has a Quick ratio of 1.23. This is in the better half of the industry: CGM outperforms 66.67% of its industry peers.
| 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 1.08% over the past year.
Measured over the past years, CGM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.64% on average per year.
The Revenue has decreased by -1.89% 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)1.08%
EPS 3Y12.52%
EPS 5Y13.64%
EPS Q2Q%-1.41%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
3.2 Future
CGM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.27% yearly.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 4.15% on average per year.
EPS Next Y3.11%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y6.27%
Revenue Next Year1.8%
Revenue Next 2Y2.99%
Revenue Next 3Y3.9%
Revenue Next 5Y4.15%
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 16.24, the valuation of CGM can be described as correct.
Based on the Price/Earnings ratio, CGM is valued a bit cheaper than 70.67% of the companies in the same industry.
CGM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 12.78, which indicates a correct valuation of CGM.
CGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CGM is cheaper than 72.00% of the companies in the same industry.
CGM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA is on the same level as the industry average.
64.00% of the companies in the same industry are more expensive than CGM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CGM does not grow enough to justify the current Price/Earnings ratio.
CGM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.23
PEG (5Y)1.19
EPS Next 2Y5.41%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of CGM is nicely growing with an annual growth rate of 13.86%!
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 2Y5.41%
EPS Next 3Y6.25%
FRA:CGM (3/7/2025, 7:00:00 PM)
153.75
-1.35 (-0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.74%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap26.35B
Analysts79.2
Price Target208.13 (35.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)-0.24%
PT rev (3m)-1.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-3.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 12.78 | ||
| P/S | 1.18 | ||
| P/FCF | 10.67 | ||
| P/OCF | 9.63 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.23 |
EPS(TTM)9.47
EY6.16%
EPS(NY)12.03
Fwd EY7.83%
FCF(TTM)14.41
FCFY9.37%
OCF(TTM)15.97
OCFY10.39%
SpS129.76
BVpS63.28
TBVpS-7.9
PEG (NY)5.23
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROCE | 14.97% | ||
| ROIC | 10.78% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 95.12% | ||
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% | ||
| FCFM | 11.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.04%
OM growth 5Y-0.76%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
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 | 2.79 |
F-Score6
WACC6.66%
ROIC/WACC1.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.08%
EPS 3Y12.52%
EPS 5Y13.64%
EPS Q2Q%-1.41%
EPS Next Y3.11%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y6.27%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year1.8%
Revenue Next 2Y2.99%
Revenue Next 3Y3.9%
Revenue Next 5Y4.15%
EBIT growth 1Y-4.38%
EBIT growth 3Y4.58%
EBIT growth 5Y8.53%
EBIT Next Year30.9%
EBIT Next 3Y12.25%
EBIT Next 5Y8.7%
FCF growth 1Y28.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.86%
OCF growth 3YN/A
OCF growth 5YN/A