CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - TSX:GIB-A - CA12532H1047 - Common Stock
128.26 CAD
-1.04 (-0.8%)
Overall GIB-A gets a fundamental rating of 6 out of 10. We evaluated GIB-A against 12 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. These ratings would make GIB-A suitable 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.
In the past 5 years GIB-A has always been profitable.
GIB-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GIB-A (8.93%) is better than 83.33% of its industry peers.
GIB-A's Return On Equity of 16.78% is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
GIB-A's Return On Invested Capital of 12.44% is amongst the best of the industry. GIB-A outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIB-A is significantly below the industry average of 45.47%.
| 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's Profit Margin of 11.01% is amongst the best of the industry. GIB-A outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
With an excellent Operating Margin value of 16.27%, GIB-A belongs to the best 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 has a Gross Margin of 16.35%. This is in the lower half of the industry: GIB-A underperforms 75.00% of its industry peers.
GIB-A's Gross Margin has declined in the last couple of years.
| 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 just above the Cost of Capital (WACC), so GIB-A is still creating some value.
Compared to 1 year ago, GIB-A has less shares outstanding
Compared to 5 years ago, GIB-A has less shares outstanding
GIB-A has a better debt/assets ratio than last year.
2.2 Solvency
GIB-A has an Altman-Z score of 3.76. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
GIB-A's Altman-Z score of 3.76 is amongst the best of the industry. GIB-A outperforms 83.33% 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.
Looking at the Debt to FCF ratio, with a value of 2.32, GIB-A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that GIB-A is not too dependend on debt financing.
The Debt to Equity ratio of GIB-A (0.40) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.51
WACC8.26%
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's Current ratio of 1.27 is fine compared to the rest of the industry. GIB-A outperforms 66.67% of its industry peers.
GIB-A has a Quick Ratio of 1.27. This is a bad value and indicates that GIB-A is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GIB-A (0.94) is comparable to the rest of the industry.
| 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.
Looking at the last year, GIB-A shows a small growth in Revenue. The Revenue has grown by 7.13% in the last 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
Based on estimates for the next years, GIB-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.70% on average per year.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
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
With a Price/Earnings ratio of 15.82, GIB-A is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GIB-A indicates a rather cheap valuation: GIB-A is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GIB-A to the average of the S&P500 Index (27.27), we can say GIB-A is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.90, the valuation of GIB-A can be described as correct.
83.33% of the companies in the same industry are more expensive than GIB-A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, GIB-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
GIB-A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GIB-A is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIB-A indicates a somewhat cheap valuation: GIB-A is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 10.08 |
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 decent profitability rating of GIB-A may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)1.57
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.46%, which is pretty low.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.46. GIB-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.46, GIB-A pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y9.96%
EPS Next 3Y9.7%
TSX:GIB-A (9/15/2025, 7:00:00 PM)
128.26
-1.04 (-0.8%)
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 Cap28.32B
Analysts78.1
Price Target169.49 (32.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)0.33%
PT rev (3m)-1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.9 | ||
| P/S | 1.82 | ||
| P/FCF | 15.47 | ||
| P/OCF | 12.87 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.08 |
EPS(TTM)8.11
EY6.32%
EPS(NY)9.23
Fwd EY7.19%
FCF(TTM)8.29
FCFY6.46%
OCF(TTM)9.96
OCFY7.77%
SpS70.46
BVpS46.24
TBVpS-10.63
PEG (NY)1.32
PEG (5Y)1.57
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 | 3.76 |
F-Score5
WACC8.26%
ROIC/WACC1.51
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 Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y6.51%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year32.58%
EBIT Next 3Y13.07%
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%