CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
145.15 EUR
-0.75 (-0.51%)
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 68 industry peers in the IT Services industry. While CGM belongs to the best of the industry regarding profitability, 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
CGM had positive earnings in the past year.
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 69.12% of the companies in the same industry.
CGM has a Return On Equity of 14.22%. This is in the better half of the industry: CGM outperforms 67.65% of its industry peers.
With a decent Return On Invested Capital value of 10.83%, CGM is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CGM is in line with the industry average of 11.04%.
The 3 year average ROIC (10.47%) for CGM is below the current ROIC(10.83%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.07%, CGM is doing good in the industry, outperforming 77.94% of the companies in the same industry.
CGM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.13%, CGM belongs to the top of the industry, outperforming 80.88% 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 27.26% is on the low side compared to the rest of the industry. CGM is outperformed by 72.06% 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
The debt/assets ratio for CGM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
CGM has a Altman-Z score (2.76) which is in line with 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 better Debt to FCF ratio (2.85) than 64.71% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
CGM has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.76 |
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 comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
CGM's Quick ratio of 1.11 is in line compared to the rest of the industry. CGM outperforms 47.06% of its industry peers.
| 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.
Looking at the last year, CGM shows a decrease in Revenue. The Revenue has decreased by -0.76% in the last 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
The Earnings Per Share is expected to grow by 6.27% on average over the next years.
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-3.63%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
EPS Next 5Y6.27%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
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
The Price/Earnings ratio is 11.75, which indicates a very decent valuation of CGM.
86.76% of the companies in the same industry are more expensive than CGM, based on the Price/Earnings ratio.
CGM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.92.
A Price/Forward Earnings ratio of 11.36 indicates a reasonable valuation of CGM.
Based on the Price/Forward Earnings ratio, CGM is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
CGM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGM is on the same level as its industry peers.
61.76% 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 | 11.68 | ||
| EV/EBITDA | 9.07 |
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
With a Yearly Dividend Yield of 2.40%, CGM has a reasonable but not impressive dividend return.
CGM's Dividend Yield is a higher than the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 2.00, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
CGM pays out 37.31% 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.
DP37.31%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
FRA:CGM (12/22/2025, 7:00:00 PM)
145.15
-0.75 (-0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.06%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap24.87B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80.91
Price Target182.28 (25.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)0.29%
PT rev (3m)0.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.13 | ||
| P/FCF | 11.68 | ||
| P/OCF | 10.19 | ||
| P/B | 2.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.07 |
EPS(TTM)12.35
EY8.51%
EPS(NY)12.77
Fwd EY8.8%
FCF(TTM)12.43
FCFY8.56%
OCF(TTM)14.24
OCFY9.81%
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 | 2.76 |
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 5Y6.27%
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 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.15%
EBIT Next 3Y13.5%
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 11.75 and the Price/Book (PB) ratio is 2.27.
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%.