CAPGEMINI SE (CAP.PA)

FR0000125338 - Common Stock

213.3  -1.4 (-0.65%)

Fundamental Rating

6

Overall CAP gets a fundamental rating of 6 out of 10. We evaluated CAP against 79 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 is quite expensive at the moment. It does show a decent growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year CAP was profitable.
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 better Return On Assets (6.73%) than 77.14% of its industry peers.
CAP has a better Return On Equity (15.91%) than 67.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.46%, CAP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CAP had an Average Return On Invested Capital over the past 3 years of 9.72%. This is in line with the industry average of 10.54%.
The last Return On Invested Capital (10.46%) for CAP is above the 3 year average (9.72%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.73%
ROE 15.91%
ROIC 10.46%
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

The Profit Margin of CAP (7.38%) is better than 82.86% of its industry peers.
In the last couple of years the Profit Margin of CAP has grown nicely.
With a decent Operating Margin value of 11.47%, CAP is doing good in the industry, outperforming 80.00% 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 (26.85%) than 81.43% 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 RankSector Rank
OM 11.47%
PM (TTM) 7.38%
GM 26.85%
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%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAP is still creating some value.
CAP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAP has more shares outstanding
Compared to 1 year ago, CAP has an improved debt to assets ratio.

2.2 Solvency

CAP has an Altman-Z score of 3.23. This indicates that CAP is financially healthy and has little risk of bankruptcy at the moment.
CAP has a Altman-Z score of 3.23. This is in the better half of the industry: CAP outperforms 78.57% of its industry peers.
CAP has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as CAP would need 2.91 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.91, CAP is doing good in the industry, outperforming 68.57% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that CAP is somewhat dependend on debt financing.
CAP's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. CAP outperforms 45.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.91
Altman-Z 3.23
ROIC/WACC1.63
WACC6.4%

2.3 Liquidity

A Current Ratio of 1.34 indicates that CAP should not have too much problems paying its short term obligations.
CAP has a Current ratio (1.34) which is in line with its industry peers.
A Quick Ratio of 1.34 indicates that CAP should not have too much problems paying its short term obligations.
CAP's Quick ratio of 1.34 is fine compared to the rest of the industry. CAP outperforms 67.14% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.34

5

3. Growth

3.1 Past

CAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.17%, which is quite good.
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 been growing slightly by 2.40% in the past year.
Measured over the past years, CAP shows a quite strong growth in Revenue. The Revenue has been growing by 11.28% on average per year.
EPS 1Y (TTM)12.17%
EPS 3Y19.83%
EPS 5Y15.47%
EPS growth Q2Q6.75%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y12.43%
Revenue growth 5Y11.28%
Revenue growth Q2Q-1.87%

3.2 Future

The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y-1.2%
EPS Next 2Y4.77%
EPS Next 3Y6.64%
EPS Next 5Y9.12%
Revenue Next Year2.32%
Revenue Next 2Y4.46%
Revenue Next 3Y5.3%
Revenue Next 5Y7.31%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.15 indicates a rather expensive valuation of CAP.
Based on the Price/Earnings ratio, CAP is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
CAP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 17.35, CAP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CAP.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, CAP is valued a bit cheaper.
Industry RankSector Rank
PE 17.15
Fwd PE 17.35

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CAP is valued a bit more expensive than 60.00% of the companies in the same industry.
CAP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 16.12
EV/EBITDA 12

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)1.11
EPS Next 2Y4.77%
EPS Next 3Y6.64%

4

5. Dividend

5.1 Amount

CAP has a Yearly Dividend Yield of 1.58%. 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 12.17.
CAP's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.58%

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 Years4
Div Non Decr Years5

5.3 Sustainability

33.61% 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.
DP33.61%
EPS Next 2Y4.77%
EPS Next 3Y6.64%

CAPGEMINI SE

EPA:CAP (3/28/2024, 7:00:00 PM)

213.3

-1.4 (-0.65%)

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 Cap36.54B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
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)
Max EPS beat(4)
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)
Max Revenue beat(4)
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 RankSector Rank
PE 17.15
Fwd PE 17.35
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)1.11
Profitability
Industry RankSector Rank
ROA 6.73%
ROE 15.91%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.47%
PM (TTM) 7.38%
GM 26.85%
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 Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.34
Quick Ratio 1.34
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)
Growth
EPS 1Y (TTM)12.17%
EPS 3Y19.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.4%
Revenue growth 3Y12.43%
Revenue growth 5Y
Revenue growth 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