CGI INC (GIB-A.CA)

CA12532H1047 - Common Stock

149.09  +0.56 (+0.38%)

Fundamental Rating

6

Overall GIB-A gets a fundamental rating of 6 out of 10. We evaluated GIB-A against 16 industry peers in the IT Services industry. GIB-A has an excellent profitability rating, but there are some minor concerns on its financial health. GIB-A has a correct valuation and a medium growth rate.



7

1. Profitability

1.1 Basic Checks

GIB-A had positive earnings in the past year.
In the past year GIB-A had a positive cash flow from operations.
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 10.56% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
GIB-A has a Return On Equity of 19.05%. This is amongst the best in the industry. GIB-A outperforms 100.00% of its industry peers.
GIB-A has a Return On Invested Capital of 15.20%. This is amongst the best in the industry. GIB-A outperforms 100.00% of its industry peers.
Industry RankSector Rank
ROA 10.56%
ROE 19.05%
ROIC 15.2%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 11.34%, 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 Profit Margin of GIB-A has grown nicely.
GIB-A has a Operating Margin of 16.15%. 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.
The Gross Margin of GIB-A (16.24%) is worse than 66.67% of its industry peers.
GIB-A's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.15%
PM (TTM) 11.34%
GM 16.24%
OM growth 3Y1.6%
OM growth 5Y1.86%
PM growth 3Y7.48%
PM growth 5Y2.85%
GM growth 3Y1.03%
GM growth 5Y0.03%

6

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

GIB-A has an Altman-Z score of 4.70. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
GIB-A's Altman-Z score of 4.70 is amongst the best of the industry. GIB-A outperforms 93.33% of its industry peers.
GIB-A has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.78, GIB-A belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that GIB-A is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, GIB-A is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.78
Altman-Z 4.7
ROIC/WACC1.51
WACC10.06%

2.3 Liquidity

A Current Ratio of 1.11 indicates that GIB-A should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, GIB-A perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that GIB-A may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, GIB-A is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.86

5

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 14.92%, which is quite good.
The Earnings Per Share has been growing by 10.98% on average over the past years. This is quite good.
The Revenue has grown by 9.26% in the past year. This is quite good.
GIB-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.44% yearly.
EPS 1Y (TTM)14.92%
EPS 3Y13.08%
EPS 5Y10.98%
EPS growth Q2Q10.24%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y5.53%
Revenue growth 5Y4.44%
Revenue growth Q2Q4.43%

3.2 Future

GIB-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.59% yearly.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y12%
EPS Next 2Y10.58%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year3.64%
Revenue Next 2Y3.99%
Revenue Next 3Y3.92%
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 stable: in the next years the growth will be about the same than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.59, which indicates a rather expensive current valuation of GIB-A.
Based on the Price/Earnings ratio, GIB-A is valued cheaply inside the industry as 86.67% 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 26.42.
Based on the Price/Forward Earnings ratio of 17.24, the valuation of GIB-A can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GIB-A is valued cheaper than 86.67% 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 (22.74), we can say GIB-A is valued slightly cheaper.
Industry RankSector Rank
PE 20.59
Fwd PE 17.24

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GIB-A is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
73.33% of the companies in the same industry are more expensive than GIB-A, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.05
EV/EBITDA 11.31

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.
The decent profitability rating of GIB-A may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)1.88
EPS Next 2Y10.58%
EPS Next 3Y9.59%

0

5. Dividend

5.1 Amount

GIB-A does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CGI INC

TSX:GIB-A (3/27/2024, 7:00:00 PM)

149.09

+0.56 (+0.38%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.37B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 20.59
Fwd PE 17.24
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.72
PEG (5Y)1.88
Profitability
Industry RankSector Rank
ROA 10.56%
ROE 19.05%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.15%
PM (TTM) 11.34%
GM 16.24%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.11
Quick Ratio 0.86
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.92%
EPS 3Y13.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.26%
Revenue growth 3Y5.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y