CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:GIB-A • CA12532H1047
115.57 CAD
-1.52 (-1.3%)
Last: Jan 29, 2026, 07:00 PM
GIB-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 11 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making GIB-A a very profitable company, without any liquidiy or solvency issues. GIB-A is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, GIB-A could be worth investigating further for value and 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.
- GIB-A had positive earnings in each of the past 5 years.
- 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 8.49%, GIB-A belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- With an excellent Return On Equity value of 16.13%, GIB-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- GIB-A has a better Return On Invested Capital (13.30%) than 90.91% 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 9.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROIC | 13.3% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
1.3 Margins
- The Profit Margin of GIB-A (10.42%) is better than 90.91% 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 16.30%, 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 been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 16.41%, GIB-A is doing worse than 72.73% 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) | 10.42% | ||
| GM | 16.41% |
OM growth 3Y0.3%
OM growth 5Y1.26%
PM growth 3Y-2.93%
PM growth 5Y2.54%
GM growth 3Y-40.08%
GM growth 5Y-26.1%
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 worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.43 indicates that GIB-A is not in any danger for bankruptcy at the moment.
- GIB-A has a better Altman-Z score (3.43) than 81.82% 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.
- The Debt to FCF ratio of GIB-A (2.32) is better than 72.73% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that GIB-A is not too dependend on debt financing.
- GIB-A's Debt to Equity ratio of 0.32 is amongst the best of the industry. GIB-A outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.64
WACC8.1%
2.3 Liquidity
- GIB-A has a Current Ratio of 0.99. 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.
- GIB-A's Current ratio of 0.99 is in line compared to the rest of the industry. GIB-A outperforms 45.45% of its industry peers.
- GIB-A has a Quick Ratio of 0.99. 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 (0.72) is worse than 63.64% of its industry peers.
- 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 | 0.99 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- GIB-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.10%, which is quite good.
- The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
- The Revenue has grown by 8.43% in the past year. This is quite good.
- Measured over the past years, GIB-A shows a small growth in Revenue. The Revenue has been growing by 5.52% on average per year.
EPS 1Y (TTM)8.1%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%4.04%
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%4.67%
3.2 Future
- The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
- GIB-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y10.69%
EPS Next 2Y9.67%
EPS Next 3Y9.19%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.76, which indicates a correct valuation of GIB-A.
- 90.91% of the companies in the same industry are more expensive than GIB-A, based on the Price/Earnings ratio.
- GIB-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 11.55 indicates a reasonable valuation of GIB-A.
- Based on the Price/Forward Earnings ratio, GIB-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, GIB-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
- 81.82% of the companies in the same industry are more expensive than GIB-A, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, GIB-A is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 8.97 |
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.
- GIB-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.23
EPS Next 2Y9.67%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
- GIB-A has a yearly dividend return of 0.51%, which is pretty low.
- GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.05. GIB-A pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
- GIB-A pays out 8.14% of its income as dividend. This is a sustainable payout ratio.
DP8.14%
EPS Next 2Y9.67%
EPS Next 3Y9.19%
CGI INC / GIB-A.CA FAQ
What is the fundamental rating for GIB-A stock?
ChartMill assigns a fundamental rating of 7 / 10 to GIB-A.CA.
What is the valuation status for GIB-A stock?
ChartMill assigns a valuation rating of 7 / 10 to CGI INC (GIB-A.CA). This can be considered as Undervalued.
Can you provide the profitability details for CGI INC?
CGI INC (GIB-A.CA) has a profitability rating of 8 / 10.
What is the financial health of CGI INC (GIB-A.CA) stock?
The financial health rating of CGI INC (GIB-A.CA) is 7 / 10.
Can you provide the expected EPS growth for GIB-A stock?
The Earnings per Share (EPS) of CGI INC (GIB-A.CA) is expected to grow by 10.69% in the next year.