CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
136.95 EUR
+0.7 (+0.51%)
We assign a fundamental rating of 5 out of 10 to CGM. CGM was compared to 72 industry peers in the IT Services industry. Both the profitability and the financial health of CGM get a neutral evaluation. Nothing too spectacular is happening here. 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
CGM had positive earnings in the past year.
In the past year CGM had a positive cash flow from operations.
In the past 5 years CGM has always been profitable.
CGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CGM (6.40%) is better than 70.83% of its industry peers.
CGM's Return On Equity of 14.22% is fine compared to the rest of the industry. CGM outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.83%, CGM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CGM is significantly below the industry average of 27.45%.
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
The Profit Margin of CGM (7.07%) is better than 77.78% of its industry peers.
In the last couple of years the Profit Margin of CGM has grown nicely.
Looking at the Operating Margin, with a value of 11.13%, CGM is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
CGM's Operating Margin has been stable in the last couple of years.
The Gross Margin of CGM (27.26%) is worse than 75.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CGM is destroying 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
The debt/assets ratio for CGM has been reduced compared to a year ago.
2.2 Solvency
CGM has an Altman-Z score of 2.71. 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.
The Altman-Z score of CGM (2.71) 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 66.67% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
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 | 2.71 |
ROIC/WACC0.88
WACC12.25%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
CGM's Current ratio of 1.11 is in line compared to the rest of the industry. CGM outperforms 41.67% 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 has a Quick ratio of 1.11. This is comparable to the rest of the industry: CGM outperforms 47.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.36%.
CGM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
CGM shows a decrease in Revenue. In the last year, the revenue decreased by -0.76%.
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
Based on estimates for the next years, CGM will show a small growth in Earnings Per Share. The EPS will grow by 6.27% on average per year.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.27%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.09, the valuation of CGM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CGM indicates a rather cheap valuation: CGM is cheaper than 88.89% of the companies listed in the same industry.
CGM is valuated cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.82, which indicates a very decent valuation of CGM.
Based on the Price/Forward Earnings ratio, CGM is valued cheaper than 81.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CGM to the average of the S&P500 Index (36.20), we can say CGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CGM indicates a somewhat cheap valuation: CGM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.02 | ||
| EV/EBITDA | 8.68 |
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 2Y1.71%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.54%.
CGM's Dividend Yield is a higher than the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.32, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of CGM is nicely growing with an annual growth rate of 15.24%!
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.
The dividend of CGM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
FRA:CGM (12/3/2025, 7:00:00 PM)
136.95
+0.7 (+0.51%)
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 Cap23.47B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target181.75 (32.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 | 11.09 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.06 | ||
| P/FCF | 11.02 | ||
| P/OCF | 9.62 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)12.35
EY9.02%
EPS(NY)12.65
Fwd EY9.24%
FCF(TTM)12.43
FCFY9.08%
OCF(TTM)14.24
OCFY10.4%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.88
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 | 2.71 |
F-Score7
WACC12.25%
ROIC/WACC0.88
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 5Y6.27%
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 6 / 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 11.09 and the Price/Book (PB) ratio is 2.14.
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%.