CGI INC (GIB) Stock Fundamental Analysis
NYSE:GIB - New York Stock Exchange, Inc. - CA12532H1047 - Common Stock - Currency: USD
GIB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. While GIB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GIB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GIB had positive earnings in the past year.
GIB had a positive operating cash flow in the past year.
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
GIB's Return On Assets of 9.72% is amongst the best of the industry. GIB outperforms 82.05% of its industry peers.
GIB's Return On Equity of 17.67% is fine compared to the rest of the industry. GIB outperforms 79.49% of its industry peers.
With an excellent Return On Invested Capital value of 13.17%, GIB belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIB is above the industry average of 10.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROIC | 13.17% |
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
Looking at the Profit Margin, with a value of 11.72%, GIB belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
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 91.03% of the companies in the same industry.
GIB's Operating Margin has improved in the last couple of years.
GIB's Gross Margin of 16.45% is on the low side compared to the rest of the industry. GIB is outperformed by 85.90% of its industry peers.
In the last couple of years the Gross Margin of GIB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIB is creating some value.
Compared to 1 year ago, GIB has less shares outstanding
The number of shares outstanding for GIB has been reduced compared to 5 years ago.
The debt/assets ratio for GIB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.76 indicates that GIB is not in any danger for bankruptcy at the moment.
GIB has a better Altman-Z score (4.76) than 73.08% of its industry peers.
GIB has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
GIB's Debt to FCF ratio of 1.77 is fine compared to the rest of the industry. GIB outperforms 70.51% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that GIB is not too dependend on debt financing.
The Debt to Equity ratio of GIB (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.44
WACC9.12%
2.3 Liquidity
GIB has a Current Ratio of 1.31. This is a normal value and indicates that GIB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GIB (1.31) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.04 indicates that GIB should not have too much problems paying its short term obligations.
The Quick ratio of GIB (1.04) is worse than 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% 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 10.08% on average per year.
The Revenue has been growing slightly by 2.83% in the past year.
Measured over the past years, GIB shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)7.32%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.65%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%5.06%
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 Y11.86%
EPS Next 2Y10.11%
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 20.57, GIB is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 73.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, GIB is valued a bit cheaper.
GIB is valuated rather expensively with a Price/Forward Earnings ratio of 17.29.
Based on the Price/Forward Earnings ratio, GIB is valued a bit cheaper than 74.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, GIB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 17.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than 74.36% of the companies in the same industry.
74.36% of the companies in the same industry are more expensive than GIB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.97 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The 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)1.73
PEG (5Y)2.04
EPS Next 2Y10.11%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
GIB has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 2.96, GIB pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.35, GIB pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 2Y10.11%
EPS Next 3Y9.83%
112.54
-4.78 (-4.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners70.76%
Inst Owner Change-0.79%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap25.57B
Analysts76.36
Price Target120.17 (6.78%)
Short Float %0.82%
Short Ratio8.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.51%
Min EPS beat(4)-3.04%
Max EPS beat(4)-1.66%
EPS beat(8)1
Avg EPS beat(8)-1.72%
EPS beat(12)2
Avg EPS beat(12)-1.55%
EPS beat(16)4
Avg EPS beat(16)-1.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)-1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.2%
PT rev (1m)0.4%
PT rev (3m)-1.71%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)3%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 17.29 | ||
| P/S | 2.45 | ||
| P/FCF | 18.97 | ||
| P/OCF | 15.98 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.25 |
EPS(TTM)5.47
EY4.86%
EPS(NY)6.51
Fwd EY5.78%
FCF(TTM)5.93
FCFY5.27%
OCF(TTM)7.04
OCFY6.26%
SpS46.01
BVpS30.53
TBVpS-3.5
PEG (NY)1.73
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROCE | 17.78% | ||
| ROIC | 13.17% | ||
| ROICexc | 15.18% | ||
| ROICexgc | 205.59% | ||
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% | ||
| FCFM | 12.89% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 65.76% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 26.64 | ||
| Cash Conversion | 76.38% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.76 |
F-Score6
WACC9.12%
ROIC/WACC1.44
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)7.32%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.65%
EPS Next Y11.86%
EPS Next 2Y10.11%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%5.06%
Revenue Next Year5%
Revenue Next 2Y4.65%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year28.28%
EBIT Next 3Y13.22%
EBIT Next 5YN/A
FCF growth 1Y19.82%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y14.52%
OCF growth 3Y1.38%
OCF growth 5Y6.18%