CGI INC (GIB-A.CA) Stock Fundamental Analysis
TSX:GIB-A - Toronto Stock Exchange - CA12532H1047 - Common Stock - Currency: CAD
Taking everything into account, GIB-A scores 6 out of 10 in our fundamental rating. GIB-A was compared to 12 industry peers in the IT Services industry. GIB-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GIB-A has a correct valuation and a medium growth rate. These ratings would make GIB-A suitable 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.
GIB-A had positive earnings in each of the past 5 years.
Each year in the past 5 years GIB-A had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.32%, GIB-A belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of GIB-A (17.15%) is better than 91.67% of its industry peers.
The Return On Invested Capital of GIB-A (12.18%) is better than 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
With an excellent Profit Margin value of 11.52%, GIB-A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
GIB-A's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.30%, 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.
With a Gross Margin value of 16.37%, GIB-A is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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
GIB-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, GIB-A has an improved debt to assets ratio.
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.
GIB-A has a Altman-Z score of 4.19. This is amongst the best in the industry. GIB-A outperforms 91.67% of its industry peers.
The Debt to FCF ratio of GIB-A is 2.35, which is a good value as it means it would take GIB-A, 2.35 years of fcf income to pay off all of its debts.
GIB-A has a better Debt to FCF ratio (2.35) than 83.33% of its industry peers.
GIB-A has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
GIB-A's Debt to Equity ratio of 0.41 is fine compared to the rest 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.
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.
GIB-A's Quick ratio of 0.92 is in line compared 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
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.
The Revenue has been growing slightly by 4.60% in the past year.
The Revenue has been growing slightly by 3.92% on average over the past years.
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
The Earnings Per Share is expected to grow by 9.61% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 18.65, the valuation of GIB-A can be described as rather expensive.
Based on the Price/Earnings ratio, GIB-A is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, GIB-A is valued a bit cheaper.
GIB-A is valuated correctly with a Price/Forward Earnings ratio of 15.72.
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 91.67% of the companies listed in the same industry.
GIB-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB-A is valued a bit cheaper than 75.00% of the companies 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.
The decent profitability rating of GIB-A 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
With a yearly dividend of 0.41%, GIB-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.41, 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 2.39, 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 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 (6/6/2025, 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%