CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CGM - FR0000125338 - Common Stock
136.15 EUR
-0.1 (-0.07%)
CGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 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.
- 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
- Looking at the Return On Assets, with a value of 6.40%, CGM is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
- CGM has a better Return On Equity (14.22%) than 64.47% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.83%, CGM is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
- CGM had an Average Return On Invested Capital over the past 3 years of 10.47%. This is significantly below the industry average of 26.75%.
- 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
- With a decent Profit Margin value of 7.07%, CGM is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- CGM's Profit Margin has improved in the last couple of years.
- The Operating Margin of CGM (11.13%) is better than 80.26% 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 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGM is destroying value.
- The number of shares outstanding for CGM has been reduced compared to 1 year ago.
- Compared to 5 years ago, CGM has more shares outstanding
- Compared to 1 year ago, CGM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.69 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CGM has a Altman-Z score (2.69) which is comparable to the rest of the industry.
- CGM has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as CGM would need 2.85 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.85, CGM is doing good in the industry, outperforming 63.16% 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 53.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.88
WACC12.33%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
- CGM has a worse Current ratio (1.11) than 60.53% of its industry peers.
- A Quick Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.11, CGM is in line with its industry, outperforming 46.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The earnings per share for CGM have decreased by -1.36% in the last year.
- The Earnings Per Share has been growing by 12.59% on average over the past years. This is quite good.
- CGM shows a decrease in Revenue. In the last year, the revenue decreased by -0.76%.
- 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 5.31% on average over the next years.
- The Revenue is expected to grow by 4.41% on average over the next years.
EPS Next Y-3.95%
EPS Next 2Y1.99%
EPS Next 3Y4.22%
EPS Next 5Y5.31%
Revenue Next Year1.1%
Revenue Next 2Y3.64%
Revenue Next 3Y3.92%
Revenue Next 5Y4.41%
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 11.02, the valuation of CGM can be described as very reasonable.
- CGM's Price/Earnings ratio is rather cheap when compared to the industry. CGM is cheaper than 88.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CGM is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of CGM.
- CGM's Price/Forward Earnings ratio is rather cheap when compared to the industry. CGM is cheaper than 84.21% of the companies in the same industry.
- CGM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.7 |
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.
- CGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CGM is cheaper than 69.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 8.58 |
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 2Y1.99%
EPS Next 3Y4.22%
5. Dividend
5.1 Amount
- CGM has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
- CGM's Dividend Yield is a higher than the industry average which is at 2.27.
- CGM's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 2Y1.99%
EPS Next 3Y4.22%
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 6 / 10.
Can you provide the PE and PB ratios for CGM stock?
The Price/Earnings (PE) ratio for CAPGEMINI SE (CGM.DE) is 11.02 and the Price/Book (PB) ratio is 2.13.
Is the dividend of CAPGEMINI SE sustainable?
The dividend rating of CAPGEMINI SE (CGM.DE) is 6 / 10 and the dividend payout ratio is 37.31%.