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. Both the health and profitability get an excellent rating, making GIB-A a very profitable company, without any liquidiy or solvency issues. GIB-A has a correct valuation and a medium growth rate. These ratings could make GIB-A a good candidate 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.
In the past 5 years GIB-A has always been profitable.
In the past 5 years GIB-A always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.32%, GIB-A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
GIB-A's Return On Invested Capital of 12.18% is amongst the best of the industry. GIB-A outperforms 91.67% of its industry peers.
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
GIB-A's Profit Margin of 11.52% is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
GIB-A's Profit Margin has improved in the last couple of years.
GIB-A has a better Operating Margin (16.30%) than 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 (16.37%) 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 | 16.3% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIB-A is creating some value.
Compared to 1 year ago, GIB-A has less shares outstanding
The number of shares outstanding for GIB-A has been reduced compared to 5 years ago.
The debt/assets ratio for GIB-A has been reduced compared to a year ago.
2.2 Solvency
GIB-A has an Altman-Z score of 4.21. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
GIB-A has a Altman-Z score of 4.21. This is amongst the best in the industry. GIB-A outperforms 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.
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 | 4.21 |
ROIC/WACC1.55
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GIB-A should not have too much problems paying its short term obligations.
The Current ratio of GIB-A (1.27) is better than 66.67% of its industry peers.
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 (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
GIB-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.17%.
Measured over the past years, GIB-A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.08% on average per year.
Looking at the last year, GIB-A shows a small growth in Revenue. The Revenue has grown by 4.60% in the last 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
GIB-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.61% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.85, GIB-A is valued on the expensive side.
GIB-A's Price/Earnings ratio is rather cheap when compared to the industry. GIB-A is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. GIB-A is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.89, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, GIB-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 15.89 |
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.
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 | 18.04 | ||
| EV/EBITDA | 12.18 |
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.
GIB-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.87
EPS Next 2Y10.95%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, GIB-A is not a good candidate for dividend investing.
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.
With a Dividend Yield of 0.41, GIB-A pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 2Y10.95%
EPS Next 3Y9.61%
TSX:GIB-A (6/12/2025, 7:00:00 PM)
149.26
+0.54 (+0.36%)
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 Cap33.46B
Analysts76.36
Price Target172.54 (15.6%)
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 | 18.85 | ||
| Fwd PE | 15.89 | ||
| P/S | 2.21 | ||
| P/FCF | 18.04 | ||
| P/OCF | 15.14 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.18 |
EPS(TTM)7.92
EY5.31%
EPS(NY)9.39
Fwd EY6.29%
FCF(TTM)8.27
FCFY5.54%
OCF(TTM)9.86
OCFY6.61%
SpS67.54
BVpS45.38
TBVpS-11.01
PEG (NY)1.43
PEG (5Y)1.87
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 | 4.21 |
F-Score5
WACC7.88%
ROIC/WACC1.55
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%