CGI INC (GIB-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GIB-A - CA12532H1047 - Common Stock
120.64 CAD
-6.52 (-5.13%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- In the past year GIB-A had a positive cash flow from operations.
- GIB-A had positive earnings in each of the past 5 years.
- GIB-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.49%, GIB-A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- GIB-A's Return On Equity of 16.13% is amongst the best of the industry. GIB-A outperforms 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.30%, GIB-A belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- GIB-A had an Average Return On Invested Capital over the past 3 years of 14.07%. This is significantly above the industry average of 9.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROIC | 13.3% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
1.3 Margins
- GIB-A has a better Profit Margin (10.42%) than 91.67% of its industry peers.
- GIB-A's Profit Margin has improved in the last couple of years.
- The Operating Margin of GIB-A (16.30%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of GIB-A has remained more or less at the same level.
- GIB-A's Gross Margin of 16.41% is on the low side compared to the rest of the industry. GIB-A is outperformed by 66.67% 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) | 10.42% | ||
| GM | 16.41% |
OM growth 3Y0.3%
OM growth 5Y1.26%
PM growth 3Y-2.93%
PM growth 5Y2.54%
GM growth 3Y-40.08%
GM growth 5Y-26.1%
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.
- GIB-A has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.50 indicates that GIB-A is not in any danger for bankruptcy at the moment.
- GIB-A's Altman-Z score of 3.50 is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
- The Debt to FCF ratio of GIB-A is 2.32, which is a good value as it means it would take GIB-A, 2.32 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.32, GIB-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.32 indicates that GIB-A is not too dependend on debt financing.
- The Debt to Equity ratio of GIB-A (0.32) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.66
WACC8.01%
2.3 Liquidity
- GIB-A has a Current Ratio of 0.99. 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 Current ratio of 0.99 is in line compared to the rest of the industry. GIB-A outperforms 50.00% of its industry peers.
- GIB-A has a Quick Ratio of 0.99. 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 has a Quick ratio (0.72) which is comparable to the rest of the industry.
- GIB-A does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 |
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 9.04%, which is quite good.
- The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
- The Revenue has grown by 8.43% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.52% on average over the past years.
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
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 8.53% yearly.
- The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.50, GIB-A is valued correctly.
- 83.33% of the companies in the same industry are more expensive than GIB-A, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, GIB-A is valued a bit cheaper.
- GIB-A is valuated correctly with a Price/Forward Earnings ratio of 13.08.
- 100.00% of the companies in the same industry are more expensive than GIB-A, based on the Price/Forward Earnings ratio.
- GIB-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIB-A is valued cheaper than 83.33% 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 | 14.17 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of GIB-A may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)1.29
EPS Next 2Y9.58%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.48%, GIB-A is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.04, 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.
- With a Dividend Yield of 0.48, GIB-A pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
- 8.14% of the earnings are spent on dividend by GIB-A. This is a low number and sustainable payout ratio.
DP8.14%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
TSX:GIB-A (1/20/2026, 7:00:00 PM)
120.64
-6.52 (-5.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)01-28 2026-01-28
Inst Owners71.89%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap26.44B
Revenue(TTM)15.91B
Net Income(TTM)1.66B
Analysts76.19
Price Target152.07 (26.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.64%
Min EPS beat(2)-1.94%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-2.4%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.35%
EPS beat(8)0
Avg EPS beat(8)-2.37%
EPS beat(12)2
Avg EPS beat(12)-1.65%
EPS beat(16)3
Avg EPS beat(16)-1.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)2
Avg Revenue beat(16)-2.13%
PT rev (1m)-0.56%
PT rev (3m)-10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 13.08 | ||
| P/S | 1.66 | ||
| P/FCF | 14.17 | ||
| P/OCF | 11.83 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.32 |
EPS(TTM)8.32
EY6.9%
EPS(NY)9.22
Fwd EY7.64%
FCF(TTM)8.51
FCFY7.06%
OCF(TTM)10.19
OCFY8.45%
SpS72.61
BVpS46.92
TBVpS-12.42
PEG (NY)1.34
PEG (5Y)1.29
Graham Number93.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.13% | ||
| ROCE | 17.99% | ||
| ROIC | 13.3% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 351.54% | ||
| OM | 16.3% | ||
| PM (TTM) | 10.42% | ||
| GM | 16.41% | ||
| FCFM | 11.73% |
ROA(3y)9.65%
ROA(5y)9.55%
ROE(3y)17.9%
ROE(5y)18.69%
ROIC(3y)14.07%
ROIC(5y)13.69%
ROICexc(3y)15.91%
ROICexc(5y)15.49%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.04%
ROCE(5y)18.52%
ROICexgc growth 3Y42.98%
ROICexgc growth 5Y28.41%
ROICexc growth 3Y-0.84%
ROICexc growth 5Y0.97%
OM growth 3Y0.3%
OM growth 5Y1.26%
PM growth 3Y-2.93%
PM growth 5Y2.54%
GM growth 3Y-40.08%
GM growth 5Y-26.1%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 59.98% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 20.09 | ||
| Cash Conversion | 69.63% | ||
| Profit Quality | 112.51% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.5 |
F-Score5
WACC8.01%
ROIC/WACC1.66
Cap/Depr(3y)69.26%
Cap/Depr(5y)69.7%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.61%
Profit Quality(3y)108.63%
Profit Quality(5y)111.98%
High Growth Momentum
Growth
EPS 1Y (TTM)9.04%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%10.94%
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y7.98%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year29.29%
EBIT Next 3Y10.58%
EBIT Next 5YN/A
FCF growth 1Y1.16%
FCF growth 3Y7.86%
FCF growth 5Y2.82%
OCF growth 1Y1.32%
OCF growth 3Y6.21%
OCF growth 5Y2.88%
CGI INC / GIB-A.CA FAQ
What is the fundamental rating for GIB-A stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIB-A.CA.
What is the valuation status for GIB-A stock?
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 8 / 10.
What is the financial health of CGI INC (GIB-A.CA) stock?
The financial health rating of CGI INC (GIB-A.CA) is 7 / 10.
Can you provide the expected EPS growth for GIB-A stock?
The Earnings per Share (EPS) of CGI INC (GIB-A.CA) is expected to grow by 10.82% in the next year.