CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
136.95 EUR
-1.1 (-0.8%)
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 72 industry peers in the IT Services industry. CGM has an average financial health and profitability rating. CGM 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 CGM was profitable.
CGM had a positive operating cash flow in the past year.
Each year in the past 5 years CGM has been profitable.
CGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CGM (6.40%) is better than 70.83% of its industry peers.
CGM has a Return On Equity of 14.22%. This is in the better half of the industry: CGM outperforms 66.67% of its industry peers.
CGM has a Return On Invested Capital of 10.83%. This is in the better half of the industry: CGM outperforms 69.44% 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 27.45%.
The 3 year average ROIC (10.47%) for CGM is below the current ROIC(10.83%), indicating increased profibility in the last year.
| 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
CGM has a better Profit Margin (7.07%) than 77.78% of its industry peers.
In the last couple of years the Profit Margin of CGM has grown nicely.
CGM has a Operating Margin of 11.13%. This is in the better half of the industry: CGM outperforms 79.17% 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's Gross Margin of 27.26% is on the low side compared to the rest of the industry. CGM is outperformed by 75.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CGM is destroying value.
The number of shares outstanding for CGM has been reduced compared to 1 year ago.
CGM has more shares outstanding than it did 5 years ago.
CGM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
CGM has a Altman-Z score (2.71) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 2.85, CGM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 56.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.88
WACC12.25%
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.
CGM has a Current ratio (1.11) which is in line with its industry peers.
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 comparable to the rest of the industry.
| 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%.
The Earnings Per Share has been growing by 12.59% on average over the past years. This is quite good.
Looking at the last year, CGM shows a decrease in Revenue. The Revenue has decreased by -0.76% 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)-1.36%
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, CGM will show a small growth in Earnings Per Share. The EPS will grow by 6.27% on average per year.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.27%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 11.09, the valuation of CGM can be described as very reasonable.
88.89% of the companies in the same industry are more expensive than CGM, based on the Price/Earnings ratio.
CGM is valuated cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.82, the valuation of CGM can be described as very reasonable.
CGM's Price/Forward Earnings ratio is rather cheap when compared to the industry. CGM is cheaper than 81.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CGM to the average of the S&P500 Index (35.40), we can say CGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGM.
CGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CGM is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.02 | ||
| EV/EBITDA | 8.68 |
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)0.88
EPS Next 2Y1.71%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.54%, CGM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.78, CGM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
On average, the dividend of CGM grows each year by 15.24%, which is quite nice.
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.
The dividend of CGM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
FRA:CGM (12/3/2025, 7:00:00 PM)
136.95
-1.1 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap23.47B
Revenue(TTM)22.07B
Net Income(TTM)1.56B
Analysts80
Price Target181.75 (32.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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)-0.12%
PT rev (3m)-1.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.06 | ||
| P/FCF | 11.02 | ||
| P/OCF | 9.62 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)12.35
EY9.02%
EPS(NY)12.65
Fwd EY9.24%
FCF(TTM)12.43
FCFY9.08%
OCF(TTM)14.24
OCFY10.4%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.88
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 | 2.71 |
F-Score7
WACC12.25%
ROIC/WACC0.88
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-3.71%
EPS Next 2Y1.71%
EPS Next 3Y4.12%
EPS Next 5Y6.27%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year0.56%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y5.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year26.42%
EBIT Next 3Y11.59%
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.
Can you provide the valuation status for CAPGEMINI SE?
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 6 / 10.
What are the PE and PB ratios of CAPGEMINI SE (CGM.DE) stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 11.09 and the Price/Book (PB) ratio is 2.14.
Can you provide the dividend sustainability for CGM stock?
The dividend rating of CAPGEMINI SE (CGM.DE) is 5 / 10 and the dividend payout ratio is 37.31%.