CAPGEMINI SE (CAP.PA)
FR0000125338 - Common Stock
We assign a fundamental rating of 5 out of 10 to CAP. CAP was compared to 72 industry peers in the IT Services industry. While CAP has a great profitability rating, there are some minor concerns on its financial health. CAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAP was profitable.
In the past year CAP had a positive cash flow from operations.
Each year in the past 5 years CAP has been profitable.
Each year in the past 5 years CAP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.79%, CAP is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
The Return On Equity of CAP (15.58%) is better than 70.59% of its industry peers.
With a decent Return On Invested Capital value of 10.59%, CAP is doing good in the industry, outperforming 67.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAP is in line with the industry average of 11.40%.
The last Return On Invested Capital (10.59%) for CAP is above the 3 year average (9.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROIC | 10.59% |
ROA(3y)5.87%
ROA(5y)5.34%
ROE(3y)15.16%
ROE(5y)14.26%
ROIC(3y)9.72%
ROIC(5y)9.09%
1.3 Margins
CAP's Profit Margin of 7.60% is amongst the best of the industry. CAP outperforms 80.88% of its industry peers.
CAP's Profit Margin has improved in the last couple of years.
CAP's Operating Margin of 11.49% is fine compared to the rest of the industry. CAP outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 27.14%, CAP is doing worse than 79.41% of the companies in the same industry.
In the last couple of years the Gross Margin of CAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% |
OM growth 3Y1.13%
OM growth 5Y1.42%
PM growth 3Y6.93%
PM growth 5Y5.95%
GM growth 3Y0.96%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAP is creating some value.
CAP has about the same amout of shares outstanding than it did 1 year ago.
CAP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.79 indicates that CAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAP's Altman-Z score of 2.79 is fine compared to the rest of the industry. CAP outperforms 63.24% of its industry peers.
The Debt to FCF ratio of CAP is 2.67, which is a good value as it means it would take CAP, 2.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAP (2.67) is better than 70.59% of its industry peers.
CAP has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CAP (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.65
WACC6.42%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
CAP's Current ratio of 1.23 is in line compared to the rest of the industry. CAP outperforms 48.53% of its industry peers.
A Quick Ratio of 1.23 indicates that CAP should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.23, CAP is doing good in the industry, outperforming 60.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
CAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.16%.
CAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.47% yearly.
The Revenue has decreased by -2.20% in the past year.
CAP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.28% yearly.
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y15.47%
EPS Q2Q%1.38%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Sales Q2Q%-2.52%
3.2 Future
CAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
Based on estimates for the next years, CAP will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y-4.52%
EPS Next 2Y0.13%
EPS Next 3Y2.88%
EPS Next 5Y7.78%
Revenue Next Year-1.42%
Revenue Next 2Y0.94%
Revenue Next 3Y2.5%
Revenue Next 5Y6.37%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.58, which indicates a correct valuation of CAP.
Based on the Price/Earnings ratio, CAP is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CAP to the average of the S&P500 Index (29.48), we can say CAP is valued rather cheaply.
CAP is valuated correctly with a Price/Forward Earnings ratio of 12.62.
Based on the Price/Forward Earnings ratio, CAP is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
CAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
CAP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CAP is valued a bit cheaper than 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.92 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
CAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y0.13%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
CAP's Dividend Yield is a higher than the industry average which is at 4.50.
CAP's Dividend Yield is comparable with the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of CAP grows each year by 13.86%, which is quite nice.
Dividend Growth(5Y)13.86%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
34.34% of the earnings are spent on dividend by CAP. This is a low number and sustainable payout ratio.
The dividend of CAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.34%
EPS Next 2Y0.13%
EPS Next 3Y2.88%
CAPGEMINI SE
EPA:CAP (12/6/2024, 7:00:00 PM)
157.45
+2.45 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.97B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 12.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 15.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.49% | ||
| PM (TTM) | 7.6% | ||
| GM | 27.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.16%
EPS 3Y19.83%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y12.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y