CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - Toronto Stock Exchange - CA12532H1047 - Common Stock - Currency: CAD
GIB-A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
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
GIB-A has a better Return On Assets (9.32%) than 83.33% of its industry peers.
With an excellent Return On Equity value of 17.15%, GIB-A belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.18%, GIB-A belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GIB-A had an Average Return On Invested Capital over the past 3 years of 14.11%. This is significantly below the industry average of 178.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.15% | ||
| ROIC | 12.18% |
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 (11.52%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
Looking at the Operating Margin, with a value of 16.30%, 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.
With a Gross Margin value of 16.37%, GIB-A is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.52% | ||
| GM | 16.37% |
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
GIB-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GIB-A has less shares outstanding than it did 1 year ago.
GIB-A has less shares outstanding than it did 5 years ago.
GIB-A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.18 indicates that GIB-A is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIB-A (4.18) is better than 91.67% of its industry peers.
GIB-A has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as GIB-A would need 2.35 years to pay back of all of its debts.
GIB-A has a Debt to FCF ratio of 2.35. This is amongst the best in the industry. GIB-A outperforms 83.33% of its industry peers.
GIB-A has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.41, GIB-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.54
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GIB-A should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.27, GIB-A is doing good in the industry, outperforming 66.67% 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.
Looking at the Quick ratio, with a value of 0.92, GIB-A is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.17% 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 4.60%.
Measured over the past years, GIB-A shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)7.17%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.61%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%7.55%
3.2 Future
Based on estimates for the next years, GIB-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.61% on average per year.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue Next Year8.11%
Revenue Next 2Y6.47%
Revenue Next 3Y5.46%
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
Based on the Price/Earnings ratio of 18.57, the valuation of GIB-A can be described as rather expensive.
Based on the Price/Earnings ratio, GIB-A is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
GIB-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 15.66 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 (22.13), we can say GIB-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.66 |
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 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIB-A indicates a somewhat cheap valuation: GIB-A is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 12.02 |
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)1.41
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 0.40%, which is pretty low.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.40. GIB-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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 2Y10.95%
EPS Next 3Y9.61%
TSX:GIB-A (6/13/2025, 7:00:00 PM)
147.08
-2.18 (-1.46%)
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 Cap32.97B
Analysts76.36
Price Target172.54 (17.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)-3.16%
Min EPS beat(2)-3.28%
Max EPS beat(2)-3.04%
EPS beat(4)0
Avg EPS beat(4)-2.92%
Min EPS beat(4)-3.28%
Max EPS beat(4)-2.32%
EPS beat(8)0
Avg EPS beat(8)-2.49%
EPS beat(12)2
Avg EPS beat(12)-1.74%
EPS beat(16)4
Avg EPS beat(16)-1.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-1.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)2
Avg Revenue beat(12)-2.08%
Revenue beat(16)2
Avg Revenue beat(16)-2.2%
PT rev (1m)1.95%
PT rev (3m)-3.73%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.66 | ||
| P/S | 2.18 | ||
| P/FCF | 17.78 | ||
| P/OCF | 14.92 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.02 |
EPS(TTM)7.92
EY5.38%
EPS(NY)9.39
Fwd EY6.39%
FCF(TTM)8.27
FCFY5.62%
OCF(TTM)9.86
OCFY6.7%
SpS67.54
BVpS45.38
TBVpS-11.01
PEG (NY)1.41
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.15% | ||
| ROCE | 16.45% | ||
| ROIC | 12.18% | ||
| ROICexc | 13.16% | ||
| ROICexgc | 146.74% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.52% | ||
| GM | 16.37% | ||
| FCFM | 12.25% |
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 | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 65.43% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 29.09 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 106.33% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 4.18 |
F-Score5
WACC7.89%
ROIC/WACC1.54
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)7.17%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%7.61%
EPS Next Y13.14%
EPS Next 2Y10.95%
EPS Next 3Y9.61%
EPS Next 5YN/A
Revenue 1Y (TTM)4.6%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%7.55%
Revenue Next Year8.11%
Revenue Next 2Y6.47%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
EBIT growth 1Y4.43%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year32.58%
EBIT Next 3Y13.07%
EBIT Next 5YN/A
FCF growth 1Y17.61%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y11.5%
OCF growth 3Y1.38%
OCF growth 5Y6.18%