CAPGEMINI SE (CGM.DE) Stock Fundamental Analysis
Europe - FRA:CGM - FR0000125338 - Common Stock
123.15 EUR
+1.05 (+0.86%)
Taking everything into account, CGM scores 5 out of 10 in our fundamental rating. CGM was compared to 73 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.
CGM had a positive operating cash flow in the past year.
CGM had positive earnings in each of the past 5 years.
In the past 5 years CGM always reported a positive cash flow from operatings.
1.2 Ratios
CGM has a Return On Assets of 6.40%. This is in the better half of the industry: CGM outperforms 71.23% of its industry peers.
CGM has a better Return On Equity (14.22%) than 63.01% of its industry peers.
The Return On Invested Capital of CGM (10.83%) is better than 68.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CGM is in line with the industry average of 11.06%.
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
Looking at the Profit Margin, with a value of 7.07%, CGM is in the better half of the industry, outperforming 73.97% of the companies in the same industry.
In the last couple of years the Profit Margin of CGM has grown nicely.
CGM has a better Operating Margin (11.13%) than 79.45% of its industry peers.
CGM's Operating Margin has been stable in the last couple of years.
The Gross Margin of CGM (27.26%) is worse than 73.97% of its industry peers.
CGM's Gross Margin has been stable in the last couple of years.
| 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
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
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 2.58 indicates that CGM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CGM (2.58) 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.
CGM has a better Debt to FCF ratio (2.85) than 61.64% of its industry peers.
CGM has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CGM's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. CGM outperforms 53.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.63
WACC6.64%
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.
The Current ratio of CGM (1.11) is worse than 63.01% of its industry peers.
A Quick Ratio of 1.11 indicates that CGM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, CGM perfoms like the industry average, outperforming 42.47% of the companies in the same 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.
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 5.55% on average over the next years.
CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-4.61%
EPS Next 2Y0.73%
EPS Next 3Y2.9%
EPS Next 5Y5.55%
Revenue Next Year-0.49%
Revenue Next 2Y1.59%
Revenue Next 3Y2.37%
Revenue Next 5Y4.23%
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
Based on the Price/Earnings ratio of 9.97, the valuation of CGM can be described as reasonable.
91.78% of the companies in the same industry are more expensive than CGM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.02, CGM is valued rather cheaply.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent 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 82.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, CGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
CGM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CGM indicates a somewhat cheap valuation: CGM is cheaper than 67.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
The decent profitability rating of CGM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y0.73%
EPS Next 3Y2.9%
5. Dividend
5.1 Amount
CGM has a Yearly Dividend Yield of 2.79%.
Compared to an average industry Dividend Yield of 7.40, CGM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, CGM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
37.31% of the earnings are spent on dividend by CGM. This is a low number and sustainable payout ratio.
CGM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.31%
EPS Next 2Y0.73%
EPS Next 3Y2.9%
FRA:CGM (10/10/2025, 7:00:00 PM)
123.15
+1.05 (+0.86%)
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 Cap21.10B
Analysts80
Price Target181.97 (47.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-1.75%
PT rev (3m)-5.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.92 | ||
| P/S | 0.96 | ||
| P/FCF | 9.91 | ||
| P/OCF | 8.65 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.82 |
EPS(TTM)12.35
EY10.03%
EPS(NY)12.41
Fwd EY10.08%
FCF(TTM)12.43
FCFY10.09%
OCF(TTM)14.24
OCFY11.56%
SpS128.77
BVpS64.03
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)0.79
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%
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-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 | 2.58 |
F-Score7
WACC6.64%
ROIC/WACC1.63
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-4.61%
EPS Next 2Y0.73%
EPS Next 3Y2.9%
EPS Next 5Y5.55%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y6.76%
Revenue growth 5Y9.36%
Sales Q2Q%-0.28%
Revenue Next Year-0.49%
Revenue Next 2Y1.59%
Revenue Next 3Y2.37%
Revenue Next 5Y4.23%
EBIT growth 1Y-3.87%
EBIT growth 3Y7.12%
EBIT growth 5Y10.1%
EBIT Next Year26.42%
EBIT Next 3Y11.59%
EBIT Next 5Y8.85%
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%