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 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. This makes GIB-A very considerable 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.
Each year in the past 5 years GIB-A has been profitable.
In the past 5 years GIB-A always reported a positive cash flow from operatings.
1.2 Ratios
GIB-A has a Return On Assets of 9.32%. This is amongst the best in the industry. GIB-A outperforms 83.33% of its industry peers.
GIB-A's Return On Equity of 17.15% is amongst the best of the industry. GIB-A outperforms 91.67% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for GIB-A 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
GIB-A has a better Profit Margin (11.52%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of GIB-A has grown nicely.
GIB-A has a Operating Margin of 16.30%. This is amongst the best in the industry. GIB-A outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of GIB-A has grown nicely.
GIB-A has a worse Gross Margin (16.37%) 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 | 16.3% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIB-A is still 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
GIB-A has an Altman-Z score of 4.19. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, GIB-A belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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's Debt to FCF ratio of 2.35 is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that GIB-A is not too dependend on debt financing.
GIB-A has a Debt to Equity ratio of 0.41. This is in the better half of the industry: GIB-A outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.54
WACC7.9%
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.
A Quick Ratio of 0.92 indicates that GIB-A may have some problems paying its short term obligations.
GIB-A has a Quick ratio of 0.92. This is comparable to the rest of the industry: GIB-A outperforms 41.67% of its industry peers.
| 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.
The Revenue has been growing slightly by 4.60% in the past year.
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.
Based on estimates for the next years, GIB-A will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
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.
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
GIB-A is valuated rather expensively with a Price/Earnings ratio of 18.65.
Based on the Price/Earnings ratio, GIB-A is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.53. GIB-A is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.72, 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 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. GIB-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIB-A indicates a somewhat cheap valuation: GIB-A is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GIB-A is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 12.06 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.85
EPS Next 2Y10.95%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
GIB-A has a yearly dividend return of 0.41%, which is pretty low.
GIB-A's Dividend Yield is rather good when compared to the industry average which is at 0.41. GIB-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GIB-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 (6/6/2025, 7:00:00 PM)
147.68
+0.66 (+0.45%)
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 Cap33.11B
Analysts76.36
Price Target172.54 (16.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)-3.46%
PT rev (3m)-3.73%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 15.72 | ||
| P/S | 2.19 | ||
| P/FCF | 17.85 | ||
| P/OCF | 14.98 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.06 |
EPS(TTM)7.92
EY5.36%
EPS(NY)9.39
Fwd EY6.36%
FCF(TTM)8.27
FCFY5.6%
OCF(TTM)9.86
OCFY6.68%
SpS67.54
BVpS45.38
TBVpS-11.01
PEG (NY)1.42
PEG (5Y)1.85
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 | 4.19 |
F-Score5
WACC7.9%
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%