CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
144.3 EUR
-0.85 (-0.59%)
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the IT Services industry. CGM scores excellent on profitability, but there are some minor concerns on its financial health. CGM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CGM had positive earnings in the past year.
In the past year CGM had a positive cash flow from operations.
CGM had positive earnings in each of the past 5 years.
Each year in the past 5 years CGM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.40%, CGM is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.22%, CGM is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
The Return On Invested Capital of CGM (10.83%) is better than 72.06% of its industry peers.
CGM had an Average Return On Invested Capital over the past 3 years of 10.47%. This is significantly below the industry average of 26.63%.
The last Return On Invested Capital (10.83%) for CGM 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
With a decent Profit Margin value of 7.07%, CGM is doing good in the industry, outperforming 79.41% of the companies in the same industry.
CGM's Profit Margin has improved in the last couple of years.
CGM has a better Operating Margin (11.13%) than 80.88% of its industry peers.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
CGM has a worse Gross Margin (27.26%) than 72.06% of its industry peers.
In the last couple of years the Gross Margin of CGM 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CGM is still creating some value.
CGM has less shares outstanding than it did 1 year ago.
CGM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
CGM has an Altman-Z score of 2.75. This is not the best score and indicates that CGM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.75, CGM is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of CGM is 2.85, which is a good value as it means it would take CGM, 2.85 years of fcf income to pay off all of its debts.
CGM has a better Debt to FCF ratio (2.85) than 64.71% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CGM is not too dependend on debt financing.
CGM has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: CGM outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.59
WACC6.83%
2.3 Liquidity
CGM has a Current Ratio of 1.11. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, CGM perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
CGM has a Quick Ratio of 1.11. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
CGM has a Quick ratio (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.36%.
CGM 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
The Earnings Per Share is expected to grow by 6.27% on average over the next years.
Based on estimates for the next years, CGM will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y-3.63%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
EPS Next 5Y6.27%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
Revenue Next 5Y5.23%
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
Based on the Price/Earnings ratio of 11.68, the valuation of CGM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CGM indicates a rather cheap valuation: CGM is cheaper than 86.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, CGM is valued rather cheaply.
A Price/Forward Earnings ratio of 11.30 indicates a reasonable valuation of CGM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CGM indicates a rather cheap valuation: CGM is cheaper than 82.35% of the companies listed in the same industry.
CGM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGM is on the same level as its industry peers.
61.76% of the companies in the same industry are more expensive than CGM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
CGM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.39%.
CGM's Dividend Yield is a higher than the industry average which is at 2.29.
Compared to an average S&P500 Dividend Yield of 1.94, CGM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of CGM is nicely growing with an annual growth rate of 15.24%!
Dividend Growth(5Y)15.24%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
CGM pays out 37.31% of its income as dividend. This is a sustainable payout ratio.
CGM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
FRA:CGM (1/2/2026, 7:00:00 PM)
144.3
-0.85 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners73.56%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap24.73B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80.91
Price Target182.28 (26.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP37.31%
Div Incr Years2
Div Non Decr Years3
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)0.29%
PT rev (3m)0.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.27%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.12 | ||
| P/FCF | 11.61 | ||
| P/OCF | 10.13 | ||
| P/B | 2.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)12.35
EY8.56%
EPS(NY)12.77
Fwd EY8.85%
FCF(TTM)12.43
FCFY8.61%
OCF(TTM)14.24
OCFY9.87%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.93
Graham Number133.39
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%
ROICexgc growth 3Y-19.62%
ROICexgc 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 | 2.75 |
F-Score7
WACC6.83%
ROIC/WACC1.59
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-3.63%
EPS Next 2Y2.2%
EPS Next 3Y4.35%
EPS Next 5Y6.27%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
Revenue Next 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year27.15%
EBIT Next 3Y13.5%
EBIT Next 5Y9.06%
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%
CAPGEMINI SE / CGM.DE FAQ
What is the fundamental rating for CGM stock?
ChartMill assigns a fundamental rating of 5 / 10 to CGM.DE.
What is the valuation status of CAPGEMINI SE (CGM.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to CAPGEMINI SE (CGM.DE). This can be considered as Fairly Valued.
What is the profitability of CGM stock?
CAPGEMINI SE (CGM.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CGM stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 11.68 and the Price/Book (PB) ratio is 2.25.
Is the dividend of CAPGEMINI SE sustainable?
The dividend rating of CAPGEMINI SE (CGM.DE) is 5 / 10 and the dividend payout ratio is 37.31%.