CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
FRA:CGM - Deutsche Boerse Ag - FR0000125338 - Common Stock - Currency: EUR
Overall CGM gets a fundamental rating of 5 out of 10. We evaluated CGM against 78 industry peers in the IT Services industry. CGM has an excellent profitability rating, but there are some minor concerns on its financial health. CGM has a valuation in line with the averages, but it does not seem to be growing.
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 6.51%, CGM is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.19%, CGM is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
CGM has a Return On Invested Capital of 10.16%. This is in the better half of the industry: CGM outperforms 67.95% of its industry peers.
CGM 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
CGM's Profit Margin of 7.56% is amongst the best of the industry. CGM outperforms 82.05% of its industry peers.
CGM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.46%, CGM belongs to the top of the industry, outperforming 85.90% of the companies in the same industry.
CGM's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 27.39%, CGM is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
CGM's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CGM is still creating some value.
Compared to 1 year ago, CGM has less shares outstanding
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
An Altman-Z score of 2.76 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, CGM is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Debt to FCF ratio of CGM is 2.75, which is a good value as it means it would take CGM, 2.75 years of fcf income to pay off all of its debts.
CGM's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. CGM outperforms 61.54% of its industry peers.
CGM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
CGM has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: CGM outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.51
WACC6.74%
2.3 Liquidity
CGM has a Current Ratio of 1.21. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CGM (1.21) is comparable to the rest of the industry.
CGM has a Quick Ratio of 1.21. This is a normal value and indicates that CGM is financially healthy and should not expect problems in meeting its short term obligations.
CGM's Quick ratio of 1.21 is in line compared to the rest of the industry. CGM outperforms 58.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for CGM have decreased by -1.69% in the last year.
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 -1.89% in the past year.
CGM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.36% yearly.
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
CGM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.20% yearly.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
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
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
CGM is valuated correctly with a Price/Earnings ratio of 12.17.
Based on the Price/Earnings ratio, CGM is valued cheaper than 87.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. CGM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.54, CGM is valued correctly.
74.36% of the companies in the same industry are more expensive than CGM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, CGM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 12.54 |
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 | 11.54 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, CGM has a reasonable but not impressive dividend return.
CGM'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, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
34.95% of the earnings are spent on dividend by CGM. This is a low number and sustainable payout ratio.
The dividend of CGM 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%
FRA:CGM (6/12/2025, 7:00:00 PM)
148.85
-3.4 (-2.23%)
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 Cap25.51B
Analysts80
Price Target193.38 (29.92%)
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 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)-1.64%
PT rev (3m)-7.09%
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)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 12.54 | ||
| P/S | 1.15 | ||
| P/FCF | 11.54 | ||
| P/OCF | 10.1 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.87 |
EPS(TTM)12.23
EY8.22%
EPS(NY)11.87
Fwd EY7.98%
FCF(TTM)12.9
FCFY8.67%
OCF(TTM)14.74
OCFY9.9%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.97
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 | 2.76 |
F-Score6
WACC6.74%
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%