CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - Toronto Stock Exchange - CA12532H1047 - Common Stock - Currency: CAD
Taking everything into account, GIB-A scores 6 out of 10 in our fundamental rating. GIB-A was compared to 13 industry peers in the IT Services industry. GIB-A gets an excellent profitability rating and is at the same time showing great financial health properties. GIB-A has a decent growth rate and is not valued too expensively. 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.
GIB-A had a positive operating cash flow in the past year.
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
GIB-A has a Return On Assets of 9.32%. This is in the better half of the industry: GIB-A outperforms 76.92% of its industry peers.
GIB-A has a Return On Equity of 17.15%. This is amongst the best in the industry. GIB-A outperforms 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 12.18%, GIB-A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
GIB-A had an Average Return On Invested Capital over the past 3 years of 14.11%. This is significantly below the industry average of 45.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.15% | ||
| ROIC | 12.18% |
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 Profit Margin of 11.52%. This is amongst the best in the industry. GIB-A outperforms 92.31% of its industry peers.
GIB-A's Profit Margin has improved in the last couple of years.
The Operating Margin of GIB-A (16.30%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GIB-A has grown nicely.
Looking at the Gross Margin, with a value of 16.37%, GIB-A is doing worse than 69.23% of the companies in the same industry.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.52% | ||
| GM | 16.37% |
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.
GIB-A has less shares outstanding than it did 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
GIB-A has an Altman-Z score of 4.12. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
GIB-A's Altman-Z score of 4.12 is amongst the best of the industry. GIB-A outperforms 92.31% of its industry peers.
The Debt to FCF ratio of GIB-A is 2.35, which is a good value as it means it would take GIB-A, 2.35 years of fcf income to pay off all of its debts.
GIB-A has a Debt to FCF ratio of 2.35. This is amongst the best in the industry. GIB-A outperforms 84.62% of its industry peers.
GIB-A has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GIB-A (0.41) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.53
WACC7.94%
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 76.92% of its industry peers.
A Quick Ratio of 0.92 indicates that GIB-A may have some problems paying its short term obligations.
The Quick ratio of GIB-A (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.17% over the past year.
Measured over the past years, GIB-A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.08% on average per year.
GIB-A shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
GIB-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
EPS 1Y (TTM)7.17%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.61%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%7.55%
3.2 Future
Based on estimates for the next years, GIB-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.61% on average per year.
GIB-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue Next Year8.11%
Revenue Next 2Y6.47%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
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 stable.
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 18.13.
Compared to the rest of the industry, the Price/Earnings ratio of GIB-A indicates a rather cheap valuation: GIB-A is cheaper than 84.62% of the companies listed in the same industry.
GIB-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 15.29, GIB-A is valued correctly.
Based on the Price/Forward Earnings ratio, GIB-A is valued cheaper than 92.31% of the companies in the same industry.
GIB-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB-A is valued a bit cheaper than 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIB-A is valued a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.36 | ||
| EV/EBITDA | 11.76 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)1.8
EPS Next 2Y10.95%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 0.42, GIB-A pays a better dividend. On top of this GIB-A pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 2Y10.95%
EPS Next 3Y9.61%
TSX:GIB-A (7/3/2025, 7:00:00 PM)
143.62
+0.6 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.17%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap32.20B
Analysts76.36
Price Target172.54 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)-3.16%
Min EPS beat(2)-3.28%
Max EPS beat(2)-3.04%
EPS beat(4)0
Avg EPS beat(4)-2.92%
Min EPS beat(4)-3.28%
Max EPS beat(4)-2.32%
EPS beat(8)0
Avg EPS beat(8)-2.49%
EPS beat(12)2
Avg EPS beat(12)-1.74%
EPS beat(16)4
Avg EPS beat(16)-1.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-1.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)2
Avg Revenue beat(12)-2.08%
Revenue beat(16)2
Avg Revenue beat(16)-2.2%
PT rev (1m)1.95%
PT rev (3m)-3.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.29 | ||
| P/S | 2.13 | ||
| P/FCF | 17.36 | ||
| P/OCF | 14.57 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.76 |
EPS(TTM)7.92
EY5.51%
EPS(NY)9.39
Fwd EY6.54%
FCF(TTM)8.27
FCFY5.76%
OCF(TTM)9.86
OCFY6.86%
SpS67.54
BVpS45.38
TBVpS-11.01
PEG (NY)1.38
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.15% | ||
| ROCE | 16.45% | ||
| ROIC | 12.18% | ||
| ROICexc | 13.16% | ||
| ROICexgc | 146.74% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.52% | ||
| GM | 16.37% | ||
| FCFM | 12.25% |
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 | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 65.43% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 29.09 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 106.33% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 4.12 |
F-Score5
WACC7.94%
ROIC/WACC1.53
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)7.17%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.61%
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue 1Y (TTM)4.6%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%7.55%
Revenue Next Year8.11%
Revenue Next 2Y6.47%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
EBIT growth 1Y4.43%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year32.58%
EBIT Next 3Y13.07%
EBIT Next 5YN/A
FCF growth 1Y17.61%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y11.5%
OCF growth 3Y1.38%
OCF growth 5Y6.18%