CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - TSX:GIB-A - CA12532H1047 - Common Stock
122.3 CAD
+0.8 (+0.66%)
Taking everything into account, GIB-A scores 7 out of 10 in our fundamental rating. GIB-A was compared to 13 industry peers in the IT Services industry. GIB-A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GIB-A is not valued too expensively and it also shows a decent growth rate. With these ratings, GIB-A could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GIB-A was profitable.
In the past year GIB-A had a positive cash flow from operations.
Each year in the past 5 years GIB-A has been profitable.
In the past 5 years GIB-A always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GIB-A (8.93%) is better than 84.62% of its industry peers.
The Return On Equity of GIB-A (16.78%) is better than 92.31% of its industry peers.
GIB-A has a better Return On Invested Capital (12.44%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIB-A is significantly above the industry average of 6.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROIC | 12.44% |
ROA(3y)10.04%
ROA(5y)9.29%
ROE(3y)19.25%
ROE(5y)18.55%
ROIC(3y)14.11%
ROIC(5y)13.37%
1.3 Margins
GIB-A has a better Profit Margin (11.01%) than 92.31% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
Looking at the Operating Margin, with a value of 16.27%, GIB-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GIB-A's Operating Margin has improved in the last couple of years.
GIB-A's Gross Margin of 16.35% is on the low side compared to the rest of the industry. GIB-A is outperformed by 69.23% of its industry peers.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% |
OM growth 3Y0.85%
OM growth 5Y2%
PM growth 3Y0.72%
PM growth 5Y2.04%
GM growth 3Y-32.26%
GM growth 5Y-21.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIB-A is creating value.
The number of shares outstanding for GIB-A has been reduced compared to 1 year ago.
The number of shares outstanding for GIB-A has been reduced compared to 5 years ago.
Compared to 1 year ago, GIB-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.67 indicates that GIB-A is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIB-A (3.67) is better than 84.62% of its industry peers.
GIB-A has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as GIB-A would need 2.32 years to pay back of all of its debts.
GIB-A's Debt to FCF ratio of 2.32 is amongst the best of the industry. GIB-A outperforms 84.62% of its industry peers.
GIB-A has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
GIB-A has a Debt to Equity ratio of 0.40. This is in the better half of the industry: GIB-A outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.62
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GIB-A should not have too much problems paying its short term obligations.
GIB-A has a Current ratio of 1.27. This is in the better half of the industry: GIB-A outperforms 69.23% of its industry peers.
A Quick Ratio of 0.94 indicates that GIB-A may have some problems paying its short term obligations.
The Quick ratio of GIB-A (0.94) is comparable to the rest of the industry.
The current and quick ratio evaluation for GIB-A is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.13% over the past year.
GIB-A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.08% yearly.
The Revenue has been growing slightly by 7.13% in the past year.
Measured over the past years, GIB-A shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
3.2 Future
GIB-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.70% yearly.
Based on estimates for the next years, GIB-A will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GIB-A is valuated correctly with a Price/Earnings ratio of 15.08.
92.31% of the companies in the same industry are more expensive than GIB-A, based on the Price/Earnings ratio.
GIB-A is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.26, which indicates a correct valuation of GIB-A.
Based on the Price/Forward Earnings ratio, GIB-A is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, GIB-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than GIB-A, based on the Enterprise Value to EBITDA ratio.
GIB-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIB-A is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.75 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIB-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.5
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, GIB-A is not a good candidate for dividend investing.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.47. GIB-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.47, GIB-A pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
GIB-A does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y9.96%
EPS Next 3Y9.7%
TSX:GIB-A (10/16/2025, 7:00:00 PM)
122.3
+0.8 (+0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap27.01B
Analysts78
Price Target169.6 (38.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.61%
Min EPS beat(2)-3.28%
Max EPS beat(2)-1.94%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.94%
EPS beat(8)0
Avg EPS beat(8)-2.43%
EPS beat(12)2
Avg EPS beat(12)-1.7%
EPS beat(16)4
Avg EPS beat(16)-1.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)2
Avg Revenue beat(16)-2%
PT rev (1m)0.06%
PT rev (3m)-1.7%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.26 | ||
| P/S | 1.74 | ||
| P/FCF | 14.75 | ||
| P/OCF | 12.27 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.66 |
EPS(TTM)8.11
EY6.63%
EPS(NY)9.23
Fwd EY7.54%
FCF(TTM)8.29
FCFY6.78%
OCF(TTM)9.96
OCFY8.15%
SpS70.46
BVpS46.24
TBVpS-10.63
PEG (NY)1.26
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROCE | 16.8% | ||
| ROIC | 12.44% | ||
| ROICexc | 13.46% | ||
| ROICexgc | 136.82% | ||
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% | ||
| FCFM | 11.77% |
ROA(3y)10.04%
ROA(5y)9.29%
ROE(3y)19.25%
ROE(5y)18.55%
ROIC(3y)14.11%
ROIC(5y)13.37%
ROICexc(3y)16.06%
ROICexc(5y)15.39%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.05%
ROCE(5y)18.05%
ROICexcg growth 3Y-9.92%
ROICexcg growth 5Y8.75%
ROICexc growth 3Y0.55%
ROICexc growth 5Y1.86%
OM growth 3Y0.85%
OM growth 5Y2%
PM growth 3Y0.72%
PM growth 5Y2.04%
GM growth 3Y-32.26%
GM growth 5Y-21.16%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 63.2% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 25.86 | ||
| Cash Conversion | 70.59% | ||
| Profit Quality | 106.88% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.67 |
F-Score5
WACC7.66%
ROIC/WACC1.62
Cap/Depr(3y)76.28%
Cap/Depr(5y)68.85%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.67%
Profit Quality(3y)104.93%
Profit Quality(5y)118.51%
High Growth Momentum
Growth
EPS 1Y (TTM)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y6.51%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year33.95%
EBIT Next 3Y13.78%
EBIT Next 5YN/A
FCF growth 1Y16.8%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y11.55%
OCF growth 3Y1.38%
OCF growth 5Y6.18%