CGI INC (GIB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIB - CA12532H1047 - Common Stock
90.76 USD
+0.5 (+0.55%)
90.76 USD
0 (0%)
GIB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. Both the profitability and the financial health of GIB get a neutral evaluation. Nothing too spectacular is happening here. GIB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GIB was profitable.
In the past year GIB had a positive cash flow from operations.
GIB had positive earnings in each of the past 5 years.
GIB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.49%, GIB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.13%, GIB belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
The Return On Invested Capital of GIB (13.30%) is better than 84.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIB is significantly below the industry average of 29.59%.
| 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 (10.42%) is better than 77.65% of its industry peers.
GIB's Profit Margin has improved in the last couple of years.
The Operating Margin of GIB (16.30%) is better than 85.88% of its industry peers.
GIB's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 16.41%, GIB is not doing good in the industry: 85.88% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GIB 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 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GIB has less shares outstanding than it did 1 year ago.
GIB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.56 indicates that GIB is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIB (3.56) is comparable to the rest of the industry.
GIB has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as GIB would need 2.32 years to pay back of all of its debts.
GIB has a Debt to FCF ratio of 2.32. This is in the better half of the industry: GIB outperforms 65.88% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that GIB is not too dependend on debt financing.
GIB's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. GIB outperforms 50.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.79
WACC7.44%
2.3 Liquidity
GIB has a Current Ratio of 0.99. This is a bad value and indicates that GIB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.99, GIB is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
GIB has a Quick Ratio of 0.99. This is a bad value and indicates that GIB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GIB (0.72) is worse than 87.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.04% over the past year.
Measured over the past years, GIB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.21% on average per year.
The Revenue has grown by 8.43% in the past year. This is quite good.
GIB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.52% yearly.
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
3.2 Future
Based on estimates for the next years, GIB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.53% on average per year.
Based on estimates for the next years, GIB will show a small growth in Revenue. The Revenue will grow by 4.43% on average per year.
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
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 decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 15.00 indicates a correct valuation of GIB.
Compared to the rest of the industry, the Price/Earnings ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 74.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, GIB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.54, the valuation of GIB can be described as correct.
Based on the Price/Forward Earnings ratio, GIB is valued a bit cheaper than 77.65% of the companies in the same industry.
GIB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GIB is valued a bit cheaper than the industry average as 74.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
GIB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.34
EPS Next 2Y9.58%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
GIB has a yearly dividend return of 0.50%, which is pretty low.
GIB's Dividend Yield is a higher than the industry average which is at 0.45.
With a Dividend Yield of 0.50, GIB pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
GIB 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
GIB pays out 8.14% of its income as dividend. This is a sustainable payout ratio.
DP8.14%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
90.76
+0.5 (+0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.35%
Inst Owner Change1.1%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap19.89B
Revenue(TTM)15.91B
Net Income(TTM)1.66B
Analysts77.14
Price Target109.52 (20.67%)
Short Float %1.92%
Short Ratio10.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP8.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.64%
Min EPS beat(2)-1.94%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-2.4%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.35%
EPS beat(8)0
Avg EPS beat(8)-2.37%
EPS beat(12)2
Avg EPS beat(12)-1.65%
EPS beat(16)3
Avg EPS beat(16)-1.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)2
Avg Revenue beat(16)-2.13%
PT rev (1m)-7.94%
PT rev (3m)-10.64%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 13.54 | ||
| P/S | 1.72 | ||
| P/FCF | 14.67 | ||
| P/OCF | 12.25 | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)6.05
EY6.67%
EPS(NY)6.7
Fwd EY7.38%
FCF(TTM)6.19
FCFY6.82%
OCF(TTM)7.41
OCFY8.16%
SpS52.78
BVpS34.1
TBVpS-9.03
PEG (NY)1.39
PEG (5Y)1.34
Graham Number68.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROCE | 17.99% | ||
| ROIC | 13.3% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 351.54% | ||
| OM | 16.3% | ||
| PM (TTM) | 10.42% | ||
| GM | 16.41% | ||
| FCFM | 11.73% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
ROICexc(3y)15.91%
ROICexc(5y)15.49%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.04%
ROCE(5y)18.52%
ROICexgc growth 3Y42.98%
ROICexgc growth 5Y28.41%
ROICexc growth 3Y-0.84%
ROICexc growth 5Y0.97%
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%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 59.98% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 20.09 | ||
| Cash Conversion | 69.63% | ||
| Profit Quality | 112.51% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.56 |
F-Score5
WACC7.44%
ROIC/WACC1.79
Cap/Depr(3y)69.26%
Cap/Depr(5y)69.7%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.61%
Profit Quality(3y)108.63%
Profit Quality(5y)111.98%
High Growth Momentum
Growth
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y7.98%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year29.29%
EBIT Next 3Y10.58%
EBIT Next 5YN/A
FCF growth 1Y1.16%
FCF growth 3Y7.86%
FCF growth 5Y2.82%
OCF growth 1Y1.32%
OCF growth 3Y6.21%
OCF growth 5Y2.88%
CGI INC / GIB FAQ
What is the fundamental rating for GIB stock?
ChartMill assigns a fundamental rating of 5 / 10 to GIB.
Can you provide the valuation status for CGI INC?
ChartMill assigns a valuation rating of 5 / 10 to CGI INC (GIB). This can be considered as Fairly Valued.
What is the profitability of GIB stock?
CGI INC (GIB) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for GIB stock?
The Earnings per Share (EPS) of CGI INC (GIB) is expected to grow by 10.82% in the next year.
How sustainable is the dividend of CGI INC (GIB) stock?
The dividend rating of CGI INC (GIB) is 2 / 10 and the dividend payout ratio is 8.14%.