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. GIB-A gets an excellent profitability rating and is at the same time showing great financial health properties. GIB-A is not valued too expensively and it also shows a decent growth rate. With these ratings, GIB-A could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GIB-A was profitable.
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.
Each year in the past 5 years GIB-A had a positive operating cash flow.
1.2 Ratios
GIB-A's Return On Assets of 9.32% is amongst the best of the industry. GIB-A outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 17.15%, GIB-A belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GIB-A has a better Return On Invested Capital (12.18%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
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.
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.
GIB-A's Operating Margin has improved in the last couple of years.
GIB-A's Gross Margin of 16.37% is on the low side compared to the rest of the industry. GIB-A is outperformed by 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIB-A is creating some value.
The number of shares outstanding for GIB-A has been reduced compared to 1 year ago.
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 4.20. This indicates that GIB-A is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.20, GIB-A belongs to the best 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.
The Debt to FCF ratio of GIB-A (2.35) is better 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 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 | 4.2 |
ROIC/WACC1.54
WACC7.9%
2.3 Liquidity
GIB-A has a Current Ratio of 1.27. This is a normal value and indicates that GIB-A is financially healthy and should not expect problems in meeting 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 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
GIB-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.17%.
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.
GIB-A shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
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
The Earnings Per Share is expected to grow by 9.61% on average over the next years. This is quite good.
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
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.
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
With a Price/Earnings ratio of 18.78, GIB-A is valued on the expensive side.
Based on the Price/Earnings ratio, GIB-A is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
GIB-A is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.83, GIB-A is valued correctly.
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.
When comparing the Price/Forward Earnings ratio of GIB-A to the average of the S&P500 Index (22.39), we can say GIB-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 15.83 |
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.
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 | 17.98 | ||
| EV/EBITDA | 12.14 |
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)1.86
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.
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 (6/11/2025, 7:00:00 PM)
148.72
-0.03 (-0.02%)
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 Cap33.34B
Analysts76.36
Price Target172.54 (16.02%)
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 | 18.78 | ||
| Fwd PE | 15.83 | ||
| P/S | 2.2 | ||
| P/FCF | 17.98 | ||
| P/OCF | 15.08 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.14 |
EPS(TTM)7.92
EY5.33%
EPS(NY)9.39
Fwd EY6.32%
FCF(TTM)8.27
FCFY5.56%
OCF(TTM)9.86
OCFY6.63%
SpS67.54
BVpS45.38
TBVpS-11.01
PEG (NY)1.43
PEG (5Y)1.86
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 | 4.2 |
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%