CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - TSX:GIB-A - CA12532H1047 - Common Stock
123.01 CAD
+0.5 (+0.41%)
Overall GIB-A gets a fundamental rating of 5 out of 10. We evaluated GIB-A against 12 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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 4 of the past 5 years.
GIB-A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GIB-A has a better Return On Assets (8.93%) than 91.67% of its industry peers.
GIB-A's Return On Equity of 16.78% 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 12.44%, GIB-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIB-A is significantly above the industry average of 6.16%.
| 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
Looking at the Profit Margin, with a value of 11.01%, GIB-A belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
Looking at the Operating Margin, with a value of 16.27%, 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 (16.35%) is worse than 75.00% 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.
There is no outstanding debt for GIB-A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GIB-A has an Altman-Z score of 3.66. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.66, GIB-A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
GIB-A has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as GIB-A would need 2.32 years to pay back of 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 83.33% of the companies in the same industry.
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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.63
WACC7.65%
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.
Looking at the Current ratio, with a value of 1.27, GIB-A is in the better half of 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.
The Quick ratio of GIB-A (0.94) is comparable to the rest of the industry.
| 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 9.84% 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 11.38% yearly.
EPS 1Y (TTM)9.84%
EPS 3Y10.93%
EPS 5Y11.38%
EPS Q2Q%14.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.53%
3.2 Future
The Earnings Per Share is expected to grow by 9.24% 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 4.83% yearly.
EPS Next Y10.12%
EPS Next 2Y9.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.68, which indicates a correct valuation of GIB-A.
GIB-A's Price/Earnings ratio is rather cheap when compared to the industry. GIB-A is cheaper than 100.00% 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 25.91.
Based on the Price/Forward Earnings ratio of 13.33, the valuation of GIB-A can be described as correct.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of GIB-A to the average of the S&P500 Index (34.57), we can say GIB-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.33 |
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.
Based on the Price/Free Cash Flow ratio, GIB-A is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 9.6 |
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)1.45
PEG (5Y)1.29
EPS Next 2Y9.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.52%, which is pretty low.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.52. GIB-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 2Y9.24%
EPS Next 3YN/A
TSX:GIB-A (11/13/2025, 7:00:00 PM)
123.01
+0.5 (+0.41%)
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 Cap27.16B
Revenue(TTM)N/A
Net Income(TTM)1.71B
Analysts78.1
Price Target166.94 (35.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)-1.57%
PT rev (3m)-1.18%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.33 | ||
| P/S | 1.75 | ||
| P/FCF | 14.84 | ||
| P/OCF | 12.35 | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)8.38
EY6.81%
EPS(NY)9.23
Fwd EY7.5%
FCF(TTM)8.29
FCFY6.74%
OCF(TTM)9.96
OCFY8.1%
SpS70.46
BVpS46.24
TBVpS-10.63
PEG (NY)1.45
PEG (5Y)1.29
Graham Number93.37
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%
ROICexgc growth 3Y-9.92%
ROICexgc 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 | 3.66 |
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)9.84%
EPS 3Y10.93%
EPS 5Y11.38%
EPS Q2Q%14.09%
EPS Next Y10.12%
EPS Next 2Y9.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.53%
Revenue Next Year5.25%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
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%
CGI INC / GIB-A.CA FAQ
What is the fundamental rating for GIB-A stock?
ChartMill assigns a fundamental rating of 5 / 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 7 / 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 14.68 and the Price/Book (PB) ratio is 2.66.
Can you provide the financial health for GIB-A stock?
The financial health rating of CGI INC (GIB-A.CA) is 6 / 10.