CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
Europe - EPA:CAP - FR0000125338 - Common Stock
123.8 EUR
+2 (+1.64%)
Taking everything into account, CAP scores 5 out of 10 in our fundamental rating. CAP was compared to 71 industry peers in the IT Services industry. CAP scores excellent on profitability, but there are some minor concerns on its financial health. CAP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CAP had positive earnings in the past year.
CAP had a positive operating cash flow in the past year.
CAP had positive earnings in each of the past 5 years.
Each year in the past 5 years CAP had a positive operating cash flow.
1.2 Ratios
CAP has a Return On Assets of 6.40%. This is in the better half of the industry: CAP outperforms 73.24% of its industry peers.
Looking at the Return On Equity, with a value of 14.22%, CAP is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.83%, CAP is doing good in the industry, outperforming 71.83% of the companies in the same industry.
CAP had an Average Return On Invested Capital over the past 3 years of 10.47%. This is in line with the industry average of 11.13%.
The last Return On Invested Capital (10.83%) for CAP is above the 3 year average (10.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.22% | ||
| ROIC | 10.83% |
ROA(3y)6.44%
ROA(5y)5.7%
ROE(3y)15.33%
ROE(5y)15.07%
ROIC(3y)10.47%
ROIC(5y)9.56%
1.3 Margins
CAP has a Profit Margin of 7.07%. This is in the better half of the industry: CAP outperforms 78.87% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
CAP's Operating Margin of 11.13% is amongst the best of the industry. CAP outperforms 83.10% of its industry peers.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
CAP has a Gross Margin of 27.26%. This is in the lower half of the industry: CAP underperforms 73.24% of its industry peers.
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 | 11.13% | ||
| PM (TTM) | 7.07% | ||
| GM | 27.26% |
OM growth 3Y0.34%
OM growth 5Y0.68%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3Y1.25%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAP is destroying value.
Compared to 1 year ago, CAP has less shares outstanding
The number of shares outstanding for CAP has been increased compared to 5 years ago.
Compared to 1 year ago, CAP has an improved debt to assets ratio.
2.2 Solvency
CAP has an Altman-Z score of 2.58. This is not the best score and indicates that CAP is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.58, CAP is in line with its industry, outperforming 50.70% of the companies in the same industry.
The Debt to FCF ratio of CAP is 2.85, which is a good value as it means it would take CAP, 2.85 years of fcf income to pay off all of its debts.
CAP has a Debt to FCF ratio (2.85) which is in line with its industry peers.
A Debt/Equity ratio of 0.37 indicates that CAP is not too dependend on debt financing.
The Debt to Equity ratio of CAP (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.92
WACC11.83%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CAP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, CAP is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
CAP has a Quick Ratio of 1.11. This is a normal value and indicates that CAP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.11, CAP perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.36%.
Measured over the past years, CAP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.59% on average per year.
CAP shows a decrease in Revenue. In the last year, the revenue decreased by -0.76%.
The Revenue has been growing by 9.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.36%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%2.04%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
3.2 Future
CAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.64% yearly.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue Next Year-0.73%
Revenue Next 2Y0.94%
Revenue Next 3Y2.22%
Revenue Next 5Y4.32%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.02, which indicates a very decent valuation of CAP.
Based on the Price/Earnings ratio, CAP is valued cheaper than 92.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAP to the average of the S&P500 Index (27.43), we can say CAP is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.03, the valuation of CAP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CAP is valued cheaper than 80.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, CAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CAP is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 7.8 |
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)0.8
EPS Next 2Y0.44%
EPS Next 3Y3.15%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.54, CAP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of CAP is nicely growing with an annual growth rate of 15.24%!
Dividend Growth(5Y)15.24%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
37.31% 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.
DP37.31%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPA:CAP (9/12/2025, 5:36:15 PM)
123.8
+2 (+1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners70.25%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.21B
Analysts80
Price Target185.44 (49.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP37.31%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.32%
PT rev (3m)-3.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.96 | ||
| P/FCF | 9.96 | ||
| P/OCF | 8.69 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.8 |
EPS(TTM)12.35
EY9.98%
EPS(NY)12.34
Fwd EY9.97%
FCF(TTM)12.43
FCFY10.04%
OCF(TTM)14.24
OCFY11.5%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.22% | ||
| ROCE | 15.04% | ||
| ROIC | 10.83% | ||
| ROICexc | 12.67% | ||
| ROICexgc | 109.35% | ||
| OM | 11.13% | ||
| PM (TTM) | 7.07% | ||
| GM | 27.26% | ||
| FCFM | 9.65% |
ROA(3y)6.44%
ROA(5y)5.7%
ROE(3y)15.33%
ROE(5y)15.07%
ROIC(3y)10.47%
ROIC(5y)9.56%
ROICexc(3y)14.12%
ROICexc(5y)13.2%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.54%
ROCE(5y)13.27%
ROICexcg growth 3Y-19.62%
ROICexcg growth 5Y-34.8%
ROICexc growth 3Y0.66%
ROICexc growth 5Y-1.74%
OM growth 3Y0.34%
OM growth 5Y0.68%
PM growth 3Y5.88%
PM growth 5Y4.53%
GM growth 3Y1.25%
GM growth 5Y0.09%
F-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 44.67% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 15.07 | ||
| Cash Conversion | 77.46% | ||
| Profit Quality | 136.54% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.58 |
F-Score7
WACC11.83%
ROIC/WACC0.92
Cap/Depr(3y)41.15%
Cap/Depr(5y)38.96%
Cap/Sales(3y)1.3%
Cap/Sales(5y)1.33%
Profit Quality(3y)137.51%
Profit Quality(5y)152.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.36%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%2.04%
EPS Next Y-4.58%
EPS Next 2Y0.44%
EPS Next 3Y3.15%
EPS Next 5Y5.64%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year-0.73%
Revenue Next 2Y0.94%
Revenue Next 3Y2.22%
Revenue Next 5Y4.32%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.94%
FCF growth 1Y10.88%
FCF growth 3Y-1.52%
FCF growth 5Y7.06%
OCF growth 1Y11.31%
OCF growth 3Y-0.72%
OCF growth 5Y7.08%