CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - CA12532H1047 - Common Stock
133.36 CAD
+0.69 (+0.52%)
We assign a fundamental rating of 6 out of 10 to GIB-A. GIB-A was compared to 13 industry peers in the IT Services industry. GIB-A scores excellent on profitability, but there are some minor concerns on its financial health. GIB-A has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GIB-A was profitable.
In the past year GIB-A had a positive cash flow from operations.
GIB-A had positive earnings in each of the past 5 years.
In the past 5 years GIB-A always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.93%, GIB-A is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Equity of GIB-A (16.78%) is better than 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.44%, GIB-A belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIB-A is significantly below the industry average of 45.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROIC | 12.44% |
ROA(3y)10.04%
ROA(5y)9.29%
ROE(3y)19.25%
ROE(5y)18.55%
ROIC(3y)14.11%
ROIC(5y)13.37%
1.3 Margins
GIB-A's Profit Margin of 11.01% is amongst the best of the industry. GIB-A outperforms 92.31% of its industry peers.
GIB-A's Profit Margin has improved in the last couple of years.
The Operating Margin of GIB-A (16.27%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GIB-A has grown nicely.
Looking at the Gross Margin, with a value of 16.35%, GIB-A is doing worse than 69.23% of the companies in the same industry.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% |
OM growth 3Y0.85%
OM growth 5Y2%
PM growth 3Y0.72%
PM growth 5Y2.04%
GM growth 3Y-32.26%
GM growth 5Y-21.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIB-A is still creating some value.
Compared to 1 year ago, GIB-A has less shares outstanding
GIB-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GIB-A has an improved debt to assets ratio.
2.2 Solvency
GIB-A has an Altman-Z score of 3.85. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
GIB-A has a Altman-Z score of 3.85. This is amongst the best in the industry. GIB-A outperforms 84.62% of its industry peers.
The Debt to FCF ratio of GIB-A is 2.32, which is a good value as it means it would take GIB-A, 2.32 years of fcf income to pay off all of its debts.
GIB-A has a Debt to FCF ratio of 2.32. This is in the better half of the industry: GIB-A outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that GIB-A is not too dependend on debt financing.
The Debt to Equity ratio of GIB-A (0.40) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.56
WACC7.97%
2.3 Liquidity
GIB-A has a Current Ratio of 1.27. This is a normal value and indicates that GIB-A is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GIB-A (1.27) is better than 69.23% of its industry peers.
GIB-A has a Quick Ratio of 1.27. This is a bad value and indicates that GIB-A is not financially healthy enough and could expect problems in meeting its short term obligations.
GIB-A's Quick ratio of 0.94 is on the low side compared to the rest of the industry. GIB-A is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.13% over the past year.
GIB-A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.08% yearly.
GIB-A shows a small growth in Revenue. In the last year, the Revenue has grown by 7.13%.
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
3.2 Future
The Earnings Per Share is expected to grow by 9.70% on average over the next years. This is quite good.
Based on estimates for the next years, GIB-A will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.44, GIB-A is valued correctly.
92.31% of the companies in the same industry are more expensive than GIB-A, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.13, GIB-A is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of GIB-A.
84.62% of the companies in the same industry are more expensive than GIB-A, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.76. GIB-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than GIB-A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GIB-A is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.24 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GIB-A may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.63
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, GIB-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.45, GIB-A pays a better dividend. On top of this GIB-A pays more dividend than 100.00% of the companies listed in the same industry.
With a Dividend Yield of 0.45, GIB-A pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
GIB-A does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y9.96%
EPS Next 3Y9.7%
TSX:GIB-A (8/29/2025, 7:00:00 PM)
133.36
+0.69 (+0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.17%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap29.73B
Analysts78.1
Price Target168.14 (26.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.61%
Min EPS beat(2)-3.28%
Max EPS beat(2)-1.94%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.94%
EPS beat(8)0
Avg EPS beat(8)-2.43%
EPS beat(12)2
Avg EPS beat(12)-1.7%
EPS beat(16)4
Avg EPS beat(16)-1.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)2
Avg Revenue beat(16)-2%
PT rev (1m)-2.55%
PT rev (3m)-0.65%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.46 | ||
| P/S | 1.91 | ||
| P/FCF | 16.24 | ||
| P/OCF | 13.51 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)8.11
EY6.08%
EPS(NY)9.23
Fwd EY6.92%
FCF(TTM)8.21
FCFY6.16%
OCF(TTM)9.87
OCFY7.4%
SpS69.8
BVpS45.8
TBVpS-10.53
PEG (NY)1.37
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROCE | 16.8% | ||
| ROIC | 12.44% | ||
| ROICexc | 13.46% | ||
| ROICexgc | 136.82% | ||
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% | ||
| FCFM | 11.77% |
ROA(3y)10.04%
ROA(5y)9.29%
ROE(3y)19.25%
ROE(5y)18.55%
ROIC(3y)14.11%
ROIC(5y)13.37%
ROICexc(3y)16.06%
ROICexc(5y)15.39%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.05%
ROCE(5y)18.05%
ROICexcg growth 3Y-9.92%
ROICexcg growth 5Y8.75%
ROICexc growth 3Y0.55%
ROICexc growth 5Y1.86%
OM growth 3Y0.85%
OM growth 5Y2%
PM growth 3Y0.72%
PM growth 5Y2.04%
GM growth 3Y-32.26%
GM growth 5Y-21.16%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 63.2% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 25.86 | ||
| Cash Conversion | 70.59% | ||
| Profit Quality | 106.88% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.85 |
F-Score5
WACC7.97%
ROIC/WACC1.56
Cap/Depr(3y)76.28%
Cap/Depr(5y)68.85%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.67%
Profit Quality(3y)104.93%
Profit Quality(5y)118.51%
High Growth Momentum
Growth
EPS 1Y (TTM)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
Revenue Next Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y6.51%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year32.58%
EBIT Next 3Y13.07%
EBIT Next 5YN/A
FCF growth 1Y16.8%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y11.55%
OCF growth 3Y1.38%
OCF growth 5Y6.18%