CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - Toronto Stock Exchange - CA12532H1047 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to GIB-A. GIB-A was compared to 12 industry peers in the IT Services industry. GIB-A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GIB-A has a correct valuation and a medium growth rate. These ratings could make GIB-A a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
GIB-A had positive earnings in the past year.
GIB-A had a positive operating cash flow in the past year.
In the past 5 years GIB-A has always been profitable.
Each year in the past 5 years GIB-A had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.72%, GIB-A belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
GIB-A's Return On Equity of 17.67% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
GIB-A has a better Return On Invested Capital (13.17%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIB-A is significantly above the industry average of 6.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROIC | 13.17% |
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
The Profit Margin of GIB-A (11.72%) is better than 91.67% of its industry peers.
GIB-A's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.37%, GIB-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GIB-A has grown nicely.
The Gross Margin of GIB-A (16.45%) is worse than 75.00% of its industry peers.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIB-A is creating value.
The number of shares outstanding for GIB-A has been reduced compared to 1 year ago.
Compared to 5 years ago, GIB-A has less shares outstanding
The debt/assets ratio for GIB-A has been reduced compared to a year ago.
2.2 Solvency
GIB-A has an Altman-Z score of 4.40. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GIB-A (4.40) is better than 91.67% of its industry peers.
The Debt to FCF ratio of GIB-A is 1.77, which is an excellent value as it means it would take GIB-A, only 1.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.77, GIB-A belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that GIB-A is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.33, GIB-A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.74
WACC7.57%
2.3 Liquidity
GIB-A has a Current Ratio of 1.31. This is a normal value and indicates that GIB-A is financially healthy and should not expect problems in meeting its short term obligations.
GIB-A has a better Current ratio (1.31) than 66.67% of its industry peers.
A Quick Ratio of 1.04 indicates that GIB-A should not have too much problems paying its short term obligations.
GIB-A's Quick ratio of 1.04 is in line compared to the rest of the industry. GIB-A outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.19% over the past year.
Measured over the past years, GIB-A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.08% on average per year.
Looking at the last year, GIB-A shows a small growth in Revenue. The Revenue has grown by 2.66% in the last year.
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)6.19%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%3.94%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%3.65%
3.2 Future
GIB-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.61% yearly.
Based on estimates for the next years, GIB-A will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue Next Year7.85%
Revenue Next 2Y6.34%
Revenue Next 3Y5.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.51, which indicates a rather expensive current valuation of GIB-A.
GIB-A's Price/Earnings ratio is rather cheap when compared to the industry. GIB-A is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. GIB-A is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.47, which indicates a correct valuation of GIB-A.
Based on the Price/Forward Earnings ratio, GIB-A is valued cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIB-A to the average of the S&P500 Index (20.74), we can say GIB-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB-A is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
75.00% of the companies in the same industry are more expensive than GIB-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.22 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
GIB-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIB-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.84
EPS Next 2Y10.95%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 0.42, 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 0.42, GIB-A pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
GIB-A is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.95%
EPS Next 3Y9.61%
TSX:GIB-A (5/5/2025, 7:00:00 PM)
145.31
+0.5 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.77%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap33.00B
Analysts76.36
Price Target178.72 (22.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.68%
Min EPS beat(2)-3.04%
Max EPS beat(2)-2.32%
EPS beat(4)0
Avg EPS beat(4)-2.51%
Min EPS beat(4)-3.04%
Max EPS beat(4)-1.66%
EPS beat(8)1
Avg EPS beat(8)-1.72%
EPS beat(12)2
Avg EPS beat(12)-1.55%
EPS beat(16)4
Avg EPS beat(16)-1.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)-1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.2%
PT rev (1m)-0.28%
PT rev (3m)3.55%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)1%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.47 | ||
| P/S | 2.22 | ||
| P/FCF | 17.22 | ||
| P/OCF | 14.51 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.61 |
EPS(TTM)7.85
EY5.4%
EPS(NY)9.39
Fwd EY6.46%
FCF(TTM)8.44
FCFY5.81%
OCF(TTM)10.02
OCFY6.89%
SpS65.44
BVpS43.41
TBVpS-4.98
PEG (NY)1.41
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.67% | ||
| ROCE | 17.78% | ||
| ROIC | 13.17% | ||
| ROICexc | 15.18% | ||
| ROICexgc | 205.59% | ||
| OM | 16.37% | ||
| PM (TTM) | 11.72% | ||
| GM | 16.45% | ||
| FCFM | 12.89% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 65.76% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 26.64 | ||
| Cash Conversion | 76.38% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.4 |
F-Score6
WACC7.57%
ROIC/WACC1.74
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)6.19%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%3.94%
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue 1Y (TTM)2.66%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%3.65%
Revenue Next Year7.85%
Revenue Next 2Y6.34%
Revenue Next 3Y5.88%
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year32.94%
EBIT Next 3Y13.99%
EBIT Next 5YN/A
FCF growth 1Y19.82%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y14.52%
OCF growth 3Y1.38%
OCF growth 5Y6.18%