CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GIB-A - CA12532H1047 - Common Stock
127.74 CAD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GIB-A. GIB-A was compared to 12 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making GIB-A a very profitable company, without any liquidiy or solvency issues. 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
In the past year GIB-A was profitable.
GIB-A had a positive operating cash flow in the past year.
Each year in the past 5 years GIB-A has been profitable.
GIB-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIB-A's Return On Assets of 8.49% is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
GIB-A's Return On Equity of 16.13% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.30%, GIB-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
GIB-A had an Average Return On Invested Capital over the past 3 years of 14.07%. This is significantly above the industry average of 6.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROIC | 13.3% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
1.3 Margins
The Profit Margin of GIB-A (10.42%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
The Operating Margin of GIB-A (16.30%) is better than 100.00% of its industry peers.
GIB-A's Operating Margin has been stable in the last couple of years.
GIB-A's Gross Margin of 16.41% is on the low side compared to the rest of the industry. GIB-A is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of GIB-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 10.42% | ||
| GM | 16.41% |
OM growth 3Y0.3%
OM growth 5Y1.26%
PM growth 3Y-2.93%
PM growth 5Y2.54%
GM growth 3Y-40.08%
GM growth 5Y-26.1%
2. Health
2.1 Basic Checks
GIB-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GIB-A has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GIB-A has been reduced compared to 5 years ago.
Compared to 1 year ago, GIB-A has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that GIB-A is not in any danger for bankruptcy at the moment.
GIB-A has a better Altman-Z score (3.60) than 83.33% 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.
The Debt to FCF ratio of GIB-A (2.32) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that GIB-A is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, GIB-A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.8
WACC7.37%
2.3 Liquidity
GIB-A has a Current Ratio of 0.99. 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 Current ratio of 0.99. This is comparable to the rest of the industry: GIB-A outperforms 41.67% of its industry peers.
GIB-A has a Quick Ratio of 0.99. 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 (0.72) 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 | 0.99 | ||
| Quick Ratio | 0.72 |
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 9.04%, 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 11.21% on average per year.
Looking at the last year, GIB-A shows a quite strong growth in Revenue. The Revenue has grown by 8.43% in the last year.
The Revenue has been growing slightly by 5.52% on average over the past years.
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
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 8.53% on average per year.
The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.35, the valuation of GIB-A can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of GIB-A indicates a rather cheap valuation: GIB-A is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GIB-A to the average of the S&P500 Index (26.46), we can say GIB-A is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of GIB-A can be described as correct.
GIB-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIB-A is cheaper than 83.33% of the companies in the same industry.
GIB-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB-A is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
GIB-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIB-A is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
The 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)1.42
PEG (5Y)1.37
EPS Next 2Y9.58%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, GIB-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.49, 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.
Compared to an average S&P500 Dividend Yield of 2.32, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
GIB-A pays out 8.14% of its income as dividend. This is a sustainable payout ratio.
DP8.14%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
TSX:GIB-A (12/5/2025, 7:00:00 PM)
127.74
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners71.35%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap27.99B
Revenue(TTM)15.91B
Net Income(TTM)1.66B
Analysts77.14
Price Target152.92 (19.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.64%
Min EPS beat(2)-1.94%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-2.4%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.35%
EPS beat(8)0
Avg EPS beat(8)-2.37%
EPS beat(12)2
Avg EPS beat(12)-1.65%
EPS beat(16)3
Avg EPS beat(16)-1.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)2
Avg Revenue beat(16)-2.13%
PT rev (1m)-8.4%
PT rev (3m)-9.78%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.85 | ||
| P/S | 1.76 | ||
| P/FCF | 15 | ||
| P/OCF | 12.53 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)8.32
EY6.51%
EPS(NY)9.22
Fwd EY7.22%
FCF(TTM)8.51
FCFY6.66%
OCF(TTM)10.19
OCFY7.98%
SpS72.61
BVpS46.92
TBVpS-12.42
PEG (NY)1.42
PEG (5Y)1.37
Graham Number93.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROCE | 17.99% | ||
| ROIC | 13.3% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 351.54% | ||
| OM | 16.3% | ||
| PM (TTM) | 10.42% | ||
| GM | 16.41% | ||
| FCFM | 11.73% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
ROICexc(3y)15.91%
ROICexc(5y)15.49%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.04%
ROCE(5y)18.52%
ROICexgc growth 3Y42.98%
ROICexgc growth 5Y28.41%
ROICexc growth 3Y-0.84%
ROICexc growth 5Y0.97%
OM growth 3Y0.3%
OM growth 5Y1.26%
PM growth 3Y-2.93%
PM growth 5Y2.54%
GM growth 3Y-40.08%
GM growth 5Y-26.1%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 59.98% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 20.09 | ||
| Cash Conversion | 69.63% | ||
| Profit Quality | 112.51% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.37%
ROIC/WACC1.8
Cap/Depr(3y)69.26%
Cap/Depr(5y)69.7%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.61%
Profit Quality(3y)108.63%
Profit Quality(5y)111.98%
High Growth Momentum
Growth
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y7.98%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year29.29%
EBIT Next 3Y10.58%
EBIT Next 5YN/A
FCF growth 1Y1.16%
FCF growth 3Y7.86%
FCF growth 5Y2.82%
OCF growth 1Y1.32%
OCF growth 3Y6.21%
OCF growth 5Y2.88%
CGI INC / GIB-A.CA FAQ
What is the fundamental rating for GIB-A stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIB-A.CA.
Can you provide the valuation status for CGI INC?
ChartMill assigns a valuation rating of 6 / 10 to CGI INC (GIB-A.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CGI INC?
CGI INC (GIB-A.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CGI INC (GIB-A.CA) stock?
The Price/Earnings (PE) ratio for CGI INC (GIB-A.CA) is 15.35 and the Price/Book (PB) ratio is 2.72.
Can you provide the financial health for GIB-A stock?
The financial health rating of CGI INC (GIB-A.CA) is 7 / 10.