CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
EPA:CAP - Euronext Paris - Matif - FR0000125338 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CAP. 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 it does not seem to be growing.
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.
In the past 5 years CAP always reported a positive cash flow from operatings.
1.2 Ratios
CAP has a Return On Assets of 6.51%. This is in the better half of the industry: CAP outperforms 71.83% of its industry peers.
CAP's Return On Equity of 14.19% is fine compared to the rest of the industry. CAP outperforms 63.38% of its industry peers.
With a decent Return On Invested Capital value of 10.16%, CAP is doing good in the industry, outperforming 69.01% 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 10.92%.
| 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
CAP has a better Profit Margin (7.56%) than 84.51% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
CAP has a Operating Margin of 11.46%. This is amongst the best in the industry. CAP outperforms 84.51% of its industry peers.
CAP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 27.39%, CAP is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
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) just above the Cost of Capital (WACC), CAP is creating some value.
CAP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAP has more shares outstanding
CAP has a better debt/assets ratio than last year.
2.2 Solvency
CAP has an Altman-Z score of 2.75. 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.
CAP has a Altman-Z score of 2.75. This is comparable to the rest of the industry: CAP outperforms 57.75% of its industry peers.
The Debt to FCF ratio of CAP is 2.75, which is a good value as it means it would take CAP, 2.75 years of fcf income to pay off all of its debts.
CAP has a Debt to FCF ratio (2.75) which is comparable to the rest of the industry.
CAP has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CAP (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.51
WACC6.73%
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 has a Current ratio of 1.21. This is comparable to the rest of the industry: CAP outperforms 49.30% of its industry peers.
CAP has a Quick 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.
With a Quick ratio value of 1.21, CAP perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
CAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
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 -1.89%.
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
Based on estimates for the next years, CAP will show a small growth in Earnings Per Share. The EPS will grow by 3.79% on average per year.
CAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y3.79%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y3.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 12.01, the valuation of CAP can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CAP indicates a rather cheap valuation: CAP is cheaper than 85.92% of the companies listed in the same industry.
CAP is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.37, the valuation of CAP can be described as correct.
74.65% of the companies in the same industry are more expensive than CAP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CAP to the average of the S&P500 Index (21.85), we can say CAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
CAP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The decent profitability rating of CAP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.23%. 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 6.87.
Compared to an average S&P500 Dividend Yield of 2.36, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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 Years6
5.3 Sustainability
34.95% of the earnings are spent on dividend by CAP. This is a low number and 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 (5/23/2025, 5:36:15 PM)
146.9
-1 (-0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners64.74%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap25.17B
Analysts80.8
Price Target192.95 (31.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
Div Incr Years5
Div Non Decr Years6
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)-7.17%
PT rev (3m)-7.07%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 12.37 | ||
| P/S | 1.14 | ||
| P/FCF | 11.38 | ||
| P/OCF | 9.96 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.82 |
EPS(TTM)12.23
EY8.33%
EPS(NY)11.87
Fwd EY8.08%
FCF(TTM)12.9
FCFY8.78%
OCF(TTM)14.74
OCFY10.04%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.95
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 | 2.75 |
F-Score6
WACC6.73%
ROIC/WACC1.51
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 5Y3.79%
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 5Y3.05%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year29.62%
EBIT Next 3Y12.88%
EBIT Next 5Y7.32%
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%