CGI INC (GIB) Stock Fundamental Analysis
NYSE:GIB - New York Stock Exchange, Inc. - CA12532H1047 - Common Stock
Taking everything into account, GIB scores 6 out of 10 in our fundamental rating. GIB was compared to 82 industry peers in the IT Services industry. While GIB has a great profitability rating, there are some minor concerns on its financial health. GIB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GIB had positive earnings in the past year.
In the past year GIB had a positive cash flow from operations.
In the past 5 years GIB has always been profitable.
GIB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIB has a better Return On Assets (10.14%) than 83.54% of its industry peers.
Looking at the Return On Equity, with a value of 17.95%, GIB is in the better half of the industry, outperforming 79.75% of the companies in the same industry.
GIB has a Return On Invested Capital of 13.54%. This is amongst the best in the industry. GIB outperforms 88.61% of its industry peers.
GIB had an Average Return On Invested Capital over the past 3 years of 14.11%. This is above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 17.95% | ||
| ROIC | 13.54% |
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's Profit Margin of 11.53% is amongst the best of the industry. GIB outperforms 83.54% of its industry peers.
GIB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.37%, GIB belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
In the last couple of years the Operating Margin of GIB has grown nicely.
GIB's Gross Margin of 16.46% is on the low side compared to the rest of the industry. GIB is outperformed by 86.08% of its industry peers.
GIB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 11.53% | ||
| GM | 16.47% |
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 is still creating some value.
GIB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GIB has less shares outstanding
The debt/assets ratio for GIB has been reduced compared to a year ago.
2.2 Solvency
GIB has an Altman-Z score of 4.99. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.99, GIB is in the better half of the industry, outperforming 70.89% of the companies in the same industry.
The Debt to FCF ratio of GIB is 1.79, which is an excellent value as it means it would take GIB, only 1.79 years of fcf income to pay off all of its debts.
GIB has a Debt to FCF ratio of 1.79. This is in the better half of the industry: GIB outperforms 70.89% of its industry peers.
GIB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
GIB has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.42
WACC9.57%
2.3 Liquidity
GIB has a Current Ratio of 1.36. This is a normal value and indicates that GIB is financially healthy and should not expect problems in meeting its short term obligations.
GIB's Current ratio of 1.36 is on the low side compared to the rest of the industry. GIB is outperformed by 62.03% of its industry peers.
A Quick Ratio of 1.02 indicates that GIB should not have too much problems paying its short term obligations.
GIB's Quick ratio of 1.02 is on the low side compared to the rest of the industry. GIB is outperformed by 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.92% over the past year.
GIB 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 shows a small growth in Revenue. The Revenue has grown by 2.66% in the last year.
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)7.92%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.26%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%4.37%
3.2 Future
GIB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y11.47%
EPS Next 2Y9.99%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue Next Year5%
Revenue Next 2Y4.65%
Revenue Next 3Y5.29%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.47 indicates a rather expensive 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 72.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GIB to the average of the S&P500 Index (27.96), we can say GIB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.35, GIB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GIB is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, GIB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 73.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GIB is valued a bit cheaper than the industry average as 75.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.29 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
GIB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GIB may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)2.03
EPS Next 2Y9.99%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, GIB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.91, GIB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, GIB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.99%
EPS Next 3Y9.83%
CGI INC
NYSE:GIB (1/17/2025, 8:04:00 PM)
After market: 108.49 0 (0%)108.49
-0.26 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners70.76%
Inst Owner Change0%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap24.73B
Analysts75.83
Price Target119.69 (10.32%)
Short Float %0.83%
Short Ratio10.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.34%
Min EPS beat(4)-3.04%
Max EPS beat(4)-1.66%
EPS beat(8)2
Avg EPS beat(8)-1.27%
EPS beat(12)3
Avg EPS beat(12)-1.24%
EPS beat(16)5
Avg EPS beat(16)-0.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)-1.52%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)2
Avg Revenue beat(12)-1.96%
Revenue beat(16)2
Avg Revenue beat(16)-2.21%
PT rev (1m)-2.03%
PT rev (3m)-3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.35 | ||
| P/S | 2.42 | ||
| P/FCF | 19.29 | ||
| P/OCF | 16.14 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.76 |
EPS(TTM)5.3
EY4.89%
EPS(NY)5.91
Fwd EY5.45%
FCF(TTM)5.62
FCFY5.18%
OCF(TTM)6.72
OCFY6.2%
SpS44.75
BVpS28.75
TBVpS-3.37
PEG (NY)1.78
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 17.95% | ||
| ROCE | 18.29% | ||
| ROIC | 13.54% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 156.91% | ||
| OM | 16.37% | ||
| PM (TTM) | 11.53% | ||
| GM | 16.47% | ||
| FCFM | 12.57% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 67.19% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 23.51 | ||
| Cash Conversion | 75.01% | ||
| Profit Quality | 108.95% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 4.99 |
F-Score6
WACC9.57%
ROIC/WACC1.42
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)7.92%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.26%
EPS Next Y11.47%
EPS Next 2Y9.99%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue 1Y (TTM)2.66%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%4.37%
Revenue Next Year5%
Revenue Next 2Y4.65%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
EBIT growth 1Y4.23%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year28.28%
EBIT Next 3Y13.22%
EBIT Next 5YN/A
FCF growth 1Y8.28%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y4.39%
OCF growth 3Y1.38%
OCF growth 5Y6.18%