CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - TSX:GIB-A - CA12532H1047 - Common Stock
121.5 CAD
-5.04 (-3.98%)
GIB-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 13 industry peers in the IT Services industry. GIB-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GIB-A is not valued too expensively and it also shows a decent growth rate. With these ratings, GIB-A could be worth investigating further 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.
GIB-A 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 8.93%, GIB-A belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
GIB-A has a Return On Equity of 16.78%. This is amongst the best in the industry. GIB-A outperforms 92.31% of its industry peers.
GIB-A's Return On Invested Capital of 12.44% is amongst the best of the industry. GIB-A outperforms 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 6.13%.
| 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 has a Profit Margin of 11.01%. This is amongst the best in the industry. GIB-A outperforms 92.31% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
GIB-A's Operating Margin of 16.27% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
GIB-A's Operating Margin has improved in the last couple of years.
GIB-A's Gross Margin of 16.35% is on the low side compared to the rest of the industry. GIB-A is outperformed by 69.23% of its industry peers.
GIB-A's Gross Margin has declined in the last couple of years.
| 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
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.
The number of shares outstanding for GIB-A has been reduced compared to 5 years ago.
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 3.73. 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 3.73. 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.
Looking at the Debt to FCF ratio, with a value of 2.32, GIB-A belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
GIB-A has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
GIB-A has a Debt to Equity ratio of 0.40. This is in the better half of the industry: GIB-A outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.63
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GIB-A should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, GIB-A is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 has a Quick ratio (0.94) which is in line with its industry peers.
GIB-A does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GIB-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, which is quite good.
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 7.13% in the last year.
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.
GIB-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
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 stable.
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
The Price/Earnings ratio is 14.98, which indicates a correct valuation of GIB-A.
Based on the Price/Earnings ratio, GIB-A is valued cheaper than 92.31% of the companies in the same industry.
GIB-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 13.17 indicates a correct valuation of GIB-A.
Based on the Price/Forward Earnings ratio, GIB-A is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GIB-A to the average of the S&P500 Index (23.04), we can say GIB-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
GIB-A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GIB-A is cheaper than 76.92% of the companies in the same industry.
76.92% 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 | 14.66 | ||
| EV/EBITDA | 9.96 |
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)1.25
PEG (5Y)1.49
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, GIB-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.47, 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 0.47, GIB-A pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y9.96%
EPS Next 3Y9.7%
TSX:GIB-A (10/15/2025, 7:00:00 PM)
121.5
-5.04 (-3.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap26.83B
Analysts78
Price Target169.6 (39.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)0.06%
PT rev (3m)-1.7%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.72 | ||
| P/FCF | 14.66 | ||
| P/OCF | 12.19 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.96 |
EPS(TTM)8.11
EY6.67%
EPS(NY)9.23
Fwd EY7.59%
FCF(TTM)8.29
FCFY6.82%
OCF(TTM)9.96
OCFY8.2%
SpS70.46
BVpS46.24
TBVpS-10.63
PEG (NY)1.25
PEG (5Y)1.49
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 | 3.73 |
F-Score5
WACC7.65%
ROIC/WACC1.63
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 Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y6.51%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year33.95%
EBIT Next 3Y13.78%
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%