CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - Toronto Stock Exchange - CA12532H1047 - Common Stock - Currency: CAD
Overall GIB-A gets a fundamental rating of 6 out of 10. We evaluated GIB-A against 14 industry peers in the IT Services industry. GIB-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GIB-A has a decent growth rate and is not valued too expensively. These ratings would make GIB-A suitable for quality investing!
1. Profitability
1.1 Basic Checks
GIB-A had positive earnings in the past year.
GIB-A had a positive operating cash flow in the past year.
In the past 5 years GIB-A has always been profitable.
In the past 5 years GIB-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.72%, GIB-A is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
GIB-A has a Return On Equity of 17.67%. This is amongst the best in the industry. GIB-A outperforms 92.86% of its industry peers.
GIB-A's Return On Invested Capital of 13.17% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIB-A is significantly above the industry average of 5.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROIC | 13.17% |
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's Profit Margin of 11.72% is amongst the best of the industry. GIB-A outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
GIB-A has a Operating Margin of 16.37%. This is amongst the best in the industry. GIB-A outperforms 100.00% of its industry peers.
GIB-A's Operating Margin has improved in the last couple of years.
GIB-A has a Gross Margin of 16.45%. This is in the lower half of the industry: GIB-A underperforms 78.57% of its industry peers.
GIB-A's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% |
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
GIB-A 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 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.
GIB-A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.49 indicates that GIB-A is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.49, GIB-A belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Debt to FCF ratio of GIB-A is 1.77, which is an excellent value as it means it would take GIB-A, only 1.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.77, GIB-A is doing good in the industry, outperforming 78.57% of the companies in the same industry.
GIB-A has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.33, GIB-A is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.43
WACC9.18%
2.3 Liquidity
GIB-A has a Current Ratio of 1.31. This is a normal value and indicates that GIB-A is financially healthy and should not expect problems in meeting its short term obligations.
GIB-A's Current ratio of 1.31 is fine compared to the rest of the industry. GIB-A outperforms 64.29% of its industry peers.
A Quick Ratio of 1.04 indicates that GIB-A should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, GIB-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
GIB-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.32%.
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.
GIB-A shows a small growth in Revenue. In the last year, the Revenue has grown by 2.83%.
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)7.32%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.65%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%5.06%
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 10.39% yearly.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y13.11%
EPS Next 2Y11%
EPS Next 3Y10.39%
EPS Next 5YN/A
Revenue Next Year7.63%
Revenue Next 2Y6.3%
Revenue Next 3Y6.22%
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 rather expensively with a Price/Earnings ratio of 19.42.
GIB-A's Price/Earnings ratio is a bit cheaper when compared to the industry. GIB-A is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. GIB-A is valued slightly cheaper when compared to this.
GIB-A is valuated correctly with a Price/Forward Earnings ratio of 16.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIB-A indicates a rather cheap valuation: GIB-A is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. GIB-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
71.43% 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 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.89 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
GIB-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GIB-A may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)1.93
EPS Next 2Y11%
EPS Next 3Y10.39%
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.41%, which is pretty low.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 137.51. GIB-A pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
GIB-A is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y11%
EPS Next 3Y10.39%
TSX:GIB-A (3/7/2025, 7:00:00 PM)
150.87
+2.75 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.77%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap34.28B
Analysts76.36
Price Target179.23 (18.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.68%
Min EPS beat(2)-3.04%
Max EPS beat(2)-2.32%
EPS beat(4)0
Avg EPS beat(4)-2.51%
Min EPS beat(4)-3.04%
Max EPS beat(4)-1.66%
EPS beat(8)1
Avg EPS beat(8)-1.72%
EPS beat(12)2
Avg EPS beat(12)-1.55%
EPS beat(16)4
Avg EPS beat(16)-1.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)-1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.2%
PT rev (1m)3.84%
PT rev (3m)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)1.12%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 16.05 | ||
| P/S | 2.31 | ||
| P/FCF | 17.89 | ||
| P/OCF | 15.07 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)7.77
EY5.15%
EPS(NY)9.4
Fwd EY6.23%
FCF(TTM)8.43
FCFY5.59%
OCF(TTM)10.01
OCFY6.63%
SpS65.39
BVpS43.38
TBVpS-4.98
PEG (NY)1.48
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROCE | 17.78% | ||
| ROIC | 13.17% | ||
| ROICexc | 15.18% | ||
| ROICexgc | 205.59% | ||
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% | ||
| FCFM | 12.89% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 65.76% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 26.64 | ||
| Cash Conversion | 76.38% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.49 |
F-Score6
WACC9.18%
ROIC/WACC1.43
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)7.32%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.65%
EPS Next Y13.11%
EPS Next 2Y11%
EPS Next 3Y10.39%
EPS Next 5YN/A
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%5.06%
Revenue Next Year7.63%
Revenue Next 2Y6.3%
Revenue Next 3Y6.22%
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year28.28%
EBIT Next 3Y13.22%
EBIT Next 5YN/A
FCF growth 1Y19.82%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y14.52%
OCF growth 3Y1.38%
OCF growth 5Y6.18%