CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
EPA:CAP - Euronext Paris - Matif - FR0000125338 - Common Stock - Currency: EUR
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. While CAP belongs to the best of the industry regarding profitability, 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.
In the past year CAP had a positive cash flow from operations.
In the past 5 years CAP has always been profitable.
Each year in the past 5 years CAP had a positive operating cash flow.
1.2 Ratios
CAP has a better Return On Assets (6.51%) than 74.65% of its industry peers.
The Return On Equity of CAP (14.19%) is better than 60.56% of its industry peers.
CAP has a Return On Invested Capital of 10.16%. This is in the better half of the industry: CAP outperforms 70.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAP is in line with the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.19% | ||
| ROIC | 10.16% |
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
The Profit Margin of CAP (7.56%) is better than 81.69% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
The Operating Margin of CAP (11.46%) is better than 84.51% of its industry peers.
CAP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 27.39%, CAP is doing worse than 71.83% of the companies in the same industry.
CAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 7.56% | ||
| GM | 27.39% |
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.
The number of shares outstanding for CAP has been reduced compared to 1 year ago.
Compared to 5 years ago, CAP has more shares outstanding
The debt/assets ratio for CAP has been reduced compared to a year ago.
2.2 Solvency
CAP has an Altman-Z score of 2.74. 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.
The Altman-Z score of CAP (2.74) is comparable to the rest of the industry.
CAP has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as CAP would need 2.75 years to pay back of all of its debts.
CAP has a Debt to FCF ratio (2.75) which is in line with its industry peers.
A Debt/Equity ratio of 0.42 indicates that CAP is not too dependend on debt financing.
CAP has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: CAP outperforms 46.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.83
WACC12.24%
2.3 Liquidity
CAP has a Current Ratio of 1.21. This is a normal value and indicates that CAP is financially healthy and should not expect problems in meeting its short term obligations.
CAP's Current ratio of 1.21 is in line compared to the rest of the industry. CAP outperforms 46.48% of its industry peers.
A Quick Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, CAP perfoms like the industry average, outperforming 54.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for CAP have decreased by -1.69% in the last year.
The Earnings Per Share has been growing by 12.59% on average over the past years. This is quite good.
Looking at the last year, CAP shows a decrease in Revenue. The Revenue has decreased by -1.89% in the last year.
The Revenue has been growing by 9.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.69%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%-4.37%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
3.2 Future
CAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.82% yearly.
CAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y4.82%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y3.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.88 indicates a reasonable valuation of CAP.
84.51% of the companies in the same industry are more expensive than CAP, based on the Price/Earnings ratio.
CAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 12.24, CAP is valued correctly.
71.83% of the companies in the same industry are more expensive than CAP, based on the Price/Forward Earnings ratio.
CAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 12.24 |
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 the industry average as 61.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.26 | ||
| EV/EBITDA | 8.74 |
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)0.94
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.93, CAP pays a bit more dividend than its industry peers.
CAP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
On average, the dividend of CAP grows each year by 15.24%, which is quite nice.
Dividend Growth(5Y)15.24%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
CAP pays out 34.95% of its income as dividend. This is a sustainable payout ratio.
CAP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.95%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPA:CAP (7/4/2025, 7:00:00 PM)
145.25
-1.2 (-0.82%)
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 Cap24.89B
Analysts80
Price Target192 (32.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
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)-0.49%
PT rev (3m)-7.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 12.24 | ||
| P/S | 1.13 | ||
| P/FCF | 11.26 | ||
| P/OCF | 9.85 | ||
| P/B | 2.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.74 |
EPS(TTM)12.23
EY8.42%
EPS(NY)11.87
Fwd EY8.17%
FCF(TTM)12.9
FCFY8.88%
OCF(TTM)14.74
OCFY10.15%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.19% | ||
| ROCE | 14.11% | ||
| ROIC | 10.16% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 106.3% | ||
| OM | 11.46% | ||
| PM (TTM) | 7.56% | ||
| GM | 27.39% | ||
| FCFM | 10.01% |
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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 46.12% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 14.89 | ||
| Cash Conversion | 78.57% | ||
| Profit Quality | 132.32% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.74 |
F-Score6
WACC12.24%
ROIC/WACC0.83
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)-1.69%
EPS 3Y10.89%
EPS 5Y12.59%
EPS Q2Q%-4.37%
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y4.82%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y3.74%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.35%
FCF growth 1Y-2.43%
FCF growth 3Y-1.52%
FCF growth 5Y7.06%
OCF growth 1Y0.04%
OCF growth 3Y-0.72%
OCF growth 5Y7.08%