CAPGEMINI SE (CAP.PA) Stock Fundamental Analysis
EPA:CAP - Euronext Paris - Matif - FR0000125338 - Common Stock - Currency: EUR
Overall CAP gets a fundamental rating of 5 out of 10. We evaluated CAP against 78 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CAP was profitable.
CAP had a positive operating cash flow in the past year.
Each year in the past 5 years CAP has been profitable.
CAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAP has a Return On Assets of 6.51%. This is in the better half of the industry: CAP outperforms 71.79% of its industry peers.
CAP has a better Return On Equity (14.19%) than 62.82% 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 66.67% of its industry peers.
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 11.18%.
| 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 80.77% of its industry peers.
CAP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.46%, CAP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
CAP has a worse Gross Margin (27.39%) than 70.51% 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 | 11.46% | ||
| 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.
The number of shares outstanding for CAP has been reduced compared to 1 year ago.
CAP has more shares outstanding than it did 5 years ago.
CAP has a better debt/assets ratio than last year.
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 has a Altman-Z score (2.79) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.75, CAP is in the better half of the industry, outperforming 60.26% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that CAP is not too dependend on debt financing.
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 | 2.79 |
ROIC/WACC1.51
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, CAP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that CAP should not have too much problems paying its short term obligations.
The Quick ratio of CAP (1.21) is comparable to the rest of the 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%.
CAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
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
The Earnings Per Share is expected to grow by 5.20% on average over the next years.
Based on estimates for the next years, CAP will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y5.2%
Revenue Next Year-0.47%
Revenue Next 2Y1.25%
Revenue Next 3Y2.39%
Revenue Next 5Y4.11%
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
With a Price/Earnings ratio of 12.30, CAP is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CAP indicates a rather cheap valuation: CAP is cheaper than 85.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. CAP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.67, CAP is valued correctly.
Based on the Price/Forward Earnings ratio, CAP is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. CAP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 12.67 |
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.
65.38% of the companies in the same industry are more expensive than CAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 9.08 |
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)0.98
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.31%. 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 6.59.
Compared to an average S&P500 Dividend Yield of 2.39, CAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
34.95% 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.
DP34.95%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPA:CAP (6/13/2025, 7:00:00 PM)
150.4
-2.35 (-1.54%)
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 Cap25.77B
Analysts80
Price Target192 (27.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)-2.5%
PT rev (3m)-8.4%
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)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.17 | ||
| P/FCF | 11.66 | ||
| P/OCF | 10.2 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)12.23
EY8.13%
EPS(NY)11.87
Fwd EY7.89%
FCF(TTM)12.9
FCFY8.58%
OCF(TTM)14.74
OCFY9.8%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.98
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 | 2.79 |
F-Score6
WACC6.75%
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 5Y5.2%
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 5Y4.11%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.74%
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%