CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
FRA:CGM - Deutsche Boerse Ag - FR0000125338 - Common Stock - Currency: EUR
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 70 industry peers in the IT Services industry. CGM scores excellent on profitability, but there are some minor concerns on its financial health. CGM is valued correctly, 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.
In the past 5 years CGM has always been profitable.
Each year in the past 5 years CGM had a positive operating cash flow.
1.2 Ratios
CGM has a Return On Assets of 6.51%. This is in the better half of the industry: CGM outperforms 75.71% of its industry peers.
CGM has a better Return On Equity (14.19%) than 65.71% of its industry peers.
The Return On Invested Capital of CGM (10.16%) is better than 71.43% 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 10.72%.
| 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
With an excellent Profit Margin value of 7.56%, CGM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
CGM's Profit Margin has improved in the last couple of years.
CGM's Operating Margin of 11.46% is amongst the best of the industry. CGM outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of CGM has remained more or less at the same level.
The Gross Margin of CGM (27.39%) is worse than 72.86% of its industry peers.
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
CGM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CGM has less shares outstanding
The number of shares outstanding for CGM has been increased compared to 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 2.68. 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.
With a Altman-Z score value of 2.68, CGM perfoms like the industry average, outperforming 55.71% 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.
With a decent Debt to FCF ratio value of 2.75, CGM is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that CGM is not too dependend on debt financing.
The Debt to Equity ratio of CGM (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.5
WACC6.78%
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.
CGM has a Current ratio of 1.21. This is comparable to the rest of the industry: CGM outperforms 51.43% of its industry peers.
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.
With a decent Quick ratio value of 1.21, CGM is doing good in the industry, outperforming 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
CGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
The Earnings Per Share has been growing by 12.59% on average over the past years. This is quite good.
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 3.79% yearly.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y-2.93%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
EPS Next 5Y3.79%
Revenue Next Year0.78%
Revenue Next 2Y2.16%
Revenue Next 3Y3.13%
Revenue Next 5Y3.05%
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 11.37 indicates a reasonable valuation of CGM.
88.57% of the companies in the same industry are more expensive than CGM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CGM to the average of the S&P500 Index (27.85), we can say CGM is valued rather cheaply.
The Price/Forward Earnings ratio is 11.71, which indicates a very decent valuation of CGM.
CGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CGM is cheaper than 77.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CGM to the average of the S&P500 Index (20.77), we can say CGM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGM.
Based on the Price/Free Cash Flow ratio, CGM is valued a bit cheaper than 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y2.12%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.58%.
CGM's Dividend Yield is comparable with the industry average which is at 7.37.
Compared to an average S&P500 Dividend Yield of 2.45, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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 Years2
5.3 Sustainability
CGM pays out 34.95% 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.
DP34.95%
EPS Next 2Y2.12%
EPS Next 3Y3.87%
FRA:CGM (4/30/2025, 7:00:00 PM)
139.05
+2.85 (+2.09%)
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 Cap23.83B
Analysts79.2
Price Target196.61 (41.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend3.41
Dividend Growth(5Y)15.24%
DP34.95%
Div Incr Years2
Div Non Decr Years2
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)-5.54%
PT rev (3m)-6.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-4.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 11.71 | ||
| P/S | 1.08 | ||
| P/FCF | 10.78 | ||
| P/OCF | 9.43 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)12.23
EY8.8%
EPS(NY)11.87
Fwd EY8.54%
FCF(TTM)12.9
FCFY9.28%
OCF(TTM)14.74
OCFY10.6%
SpS128.95
BVpS68.72
TBVpS-8.2
PEG (NY)N/A
PEG (5Y)0.9
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 | 2.68 |
F-Score6
WACC6.78%
ROIC/WACC1.5
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 5Y3.79%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-1.24%
Revenue Next Year0.78%
Revenue Next 2Y2.16%
Revenue Next 3Y3.13%
Revenue Next 5Y3.05%
EBIT growth 1Y-2.01%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year29.62%
EBIT Next 3Y12.88%
EBIT Next 5Y7.32%
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%