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 72 industry peers in the IT Services industry. While CAP has a great profitability rating, 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.
In the past year CAP had a positive cash flow from operations.
CAP had positive earnings in each of the past 5 years.
CAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAP has a better Return On Assets (6.40%) than 72.22% of its industry peers.
CAP has a Return On Equity of 14.22%. This is in the better half of the industry: CAP outperforms 62.50% of its industry peers.
CAP's Return On Invested Capital of 10.83% is fine compared to the rest of the industry. CAP outperforms 72.22% 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 11.32%.
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
The Profit Margin of CAP (7.07%) is better than 79.17% of its industry peers.
CAP's Profit Margin has improved in the last couple of years.
CAP's Operating Margin of 11.13% is amongst the best of the industry. CAP outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of CAP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 27.26%, CAP is doing worse than 72.22% of the companies in the same industry.
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) just above the Cost of Capital (WACC), CAP is creating some 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.
The debt/assets ratio for CAP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that CAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.62, CAP perfoms like the industry average, outperforming 51.39% of the companies in the same industry.
CAP has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as CAP would need 2.85 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.85, CAP perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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 | 2.62 |
ROIC/WACC1.66
WACC6.52%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CAP should not have too much problems paying its short term obligations.
The Current ratio of CAP (1.11) is worse than 65.28% of its industry peers.
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.
CAP has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for CAP have decreased by -1.36% in the last year.
CAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.59% yearly.
The Revenue has decreased by -0.76% in the past year.
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
Based on estimates for the next years, CAP will show a small growth in Earnings Per Share. The EPS will grow by 5.62% on average per year.
CAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y5.62%
Revenue Next Year-0.93%
Revenue Next 2Y0.93%
Revenue Next 3Y2.2%
Revenue Next 5Y4.29%
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 10.12 indicates a reasonable valuation of CAP.
91.67% of the companies in the same industry are more expensive than CAP, based on the Price/Earnings ratio.
CAP is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
CAP is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
Based on the Price/Forward Earnings ratio, CAP is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CAP to the average of the S&P500 Index (34.91), we can say CAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 9.8 |
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 65.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 8.05 |
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 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CAP has a Yearly Dividend Yield of 2.79%.
CAP's Dividend Yield is a higher than the industry average which is at 7.34.
CAP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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 37.31% 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.
DP37.31%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPA:CAP (8/21/2025, 7:00:00 PM)
124.95
-1.55 (-1.23%)
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 Cap21.41B
Analysts80
Price Target186.18 (49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-3.03%
PT rev (3m)-3.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.97 | ||
| P/FCF | 10.05 | ||
| P/OCF | 8.77 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.05 |
EPS(TTM)12.35
EY9.88%
EPS(NY)12.75
Fwd EY10.21%
FCF(TTM)12.43
FCFY9.95%
OCF(TTM)14.24
OCFY11.4%
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 | 2.62 |
F-Score7
WACC6.52%
ROIC/WACC1.66
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-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y5.62%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year-0.93%
Revenue Next 2Y0.93%
Revenue Next 3Y2.2%
Revenue Next 5Y4.29%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.44%
EBIT Next 3Y11.74%
EBIT Next 5Y8.92%
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%