CGI INC (GIB) Fundamental Analysis & Valuation
NYSE:GIB • CA12532H1047
Current stock price
70.3 USD
-1.68 (-2.33%)
At close:
70.3 USD
0 (0%)
After Hours:
This GIB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. GIB Profitability Analysis
1.1 Basic Checks
- In the past year GIB was profitable.
- In the past year GIB had a positive cash flow from operations.
- GIB had positive earnings in each of the past 5 years.
- GIB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GIB has a better Return On Assets (8.79%) than 79.55% of its industry peers.
- GIB's Return On Equity of 16.71% is fine compared to the rest of the industry. GIB outperforms 77.27% of its industry peers.
- GIB has a better Return On Invested Capital (13.89%) than 87.50% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GIB is above the industry average of 11.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.71% | ||
| ROIC | 13.89% |
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
- The Profit Margin of GIB (10.25%) is better than 77.27% of its industry peers.
- In the last couple of years the Profit Margin of GIB has grown nicely.
- The Operating Margin of GIB (16.29%) is better than 86.36% of its industry peers.
- GIB's Operating Margin has been stable in the last couple of years.
- GIB's Gross Margin of 16.39% is on the low side compared to the rest of the industry. GIB is outperformed by 82.95% of its industry peers.
- GIB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.39% |
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. GIB Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIB is creating some value.
- Compared to 1 year ago, GIB has less shares outstanding
- The number of shares outstanding for GIB has been reduced compared to 5 years ago.
- GIB has a worse debt/assets ratio than last year.
2.2 Solvency
- GIB has an Altman-Z score of 3.24. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.24, GIB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- GIB has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as GIB would need 2.06 years to pay back of all of its debts.
- GIB has a better Debt to FCF ratio (2.06) than 72.73% of its industry peers.
- GIB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- GIB's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. GIB outperforms 53.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.73
WACC8.02%
2.3 Liquidity
- GIB has a Current Ratio of 0.94. This is a bad value and indicates that GIB is not financially healthy enough and could expect problems in meeting its short term obligations.
- GIB's Current ratio of 0.94 is on the low side compared to the rest of the industry. GIB is outperformed by 79.55% of its industry peers.
- A Quick Ratio of 0.70 indicates that GIB may have some problems paying its short term obligations.
- GIB has a worse Quick ratio (0.70) than 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 |
3. GIB Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 9.01% over the past year.
- GIB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.21% yearly.
- GIB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.07%.
- The Revenue has been growing slightly by 5.52% on average over the past years.
EPS 1Y (TTM)9.01%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%7.61%
Revenue 1Y (TTM)9.07%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%7.74%
3.2 Future
- GIB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.37% yearly.
- Based on estimates for the next years, GIB will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y11.07%
EPS Next 2Y9.87%
EPS Next 3Y9.37%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y4.05%
Revenue Next 3Y3.95%
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 decreasing.
4. GIB Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.49, the valuation of GIB can be described as very reasonable.
- GIB's Price/Earnings ratio is a bit cheaper when compared to the industry. GIB is cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, GIB is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of GIB.
- GIB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIB is cheaper than 80.68% of the companies in the same industry.
- GIB is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than the industry average as 78.41% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GIB is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
- GIB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- GIB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)1.02
EPS Next 2Y9.87%
EPS Next 3Y9.37%
5. GIB Dividend Analysis
5.1 Amount
- GIB has a yearly dividend return of 0.65%, which is pretty low.
- In the last 3 months the price of GIB has falen by -25.07%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- GIB's Dividend Yield is a higher than the industry average which is at 1.18.
- With a Dividend Yield of 0.65, GIB pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- GIB has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GIB pays out 8.30% of its income as dividend. This is a sustainable payout ratio.
DP8.3%
EPS Next 2Y9.87%
EPS Next 3Y9.37%
GIB Fundamentals: All Metrics, Ratios and Statistics
70.3
-1.68 (-2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners73.72%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap15.10B
Revenue(TTM)16.21B
Net Income(TTM)1.66B
Analysts75.45
Price Target109.35 (55.55%)
Short Float %1.61%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.43
Dividend Growth(5Y)N/A
DP8.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-18 2026-02-18 (0.17)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.06%
Min EPS beat(2)-2.78%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-2.33%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.35%
EPS beat(8)0
Avg EPS beat(8)-2.42%
EPS beat(12)1
Avg EPS beat(12)-1.93%
EPS beat(16)2
Avg EPS beat(16)-1.74%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-2.66%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-3.74%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.76%
Revenue beat(12)1
Avg Revenue beat(12)-2.52%
Revenue beat(16)2
Avg Revenue beat(16)-2.07%
PT rev (1m)0%
PT rev (3m)-0.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 9.69 | ||
| P/S | 1.29 | ||
| P/FCF | 10.01 | ||
| P/OCF | 8.5 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.46 |
EPS(TTM)6.12
EY8.71%
EPS(NY)7.26
Fwd EY10.32%
FCF(TTM)7.02
FCFY9.99%
OCF(TTM)8.27
OCFY11.77%
SpS54.51
BVpS33.46
TBVpS-9.97
PEG (NY)1.04
PEG (5Y)1.02
Graham Number67.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.71% | ||
| ROCE | 18.8% | ||
| ROIC | 13.89% | ||
| ROICexc | 14.78% | ||
| ROICexgc | 661.9% | ||
| OM | 16.29% | ||
| PM (TTM) | 10.25% | ||
| GM | 16.39% | ||
| FCFM | 12.88% |
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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 19.96 | ||
| Cash Conversion | 75.42% | ||
| Profit Quality | 125.65% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.24 |
F-Score6
WACC8.02%
ROIC/WACC1.73
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)9.01%
EPS 3Y10.66%
EPS 5Y11.21%
EPS Q2Q%7.61%
EPS Next Y11.07%
EPS Next 2Y9.87%
EPS Next 3Y9.37%
EPS Next 5YN/A
Revenue 1Y (TTM)9.07%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%7.74%
Revenue Next Year5.14%
Revenue Next 2Y4.05%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y8.54%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year28.65%
EBIT Next 3Y11.43%
EBIT Next 5YN/A
FCF growth 1Y24.06%
FCF growth 3Y7.86%
FCF growth 5Y2.82%
OCF growth 1Y18.02%
OCF growth 3Y6.21%
OCF growth 5Y2.88%
CGI INC / GIB Fundamental Analysis FAQ
What is the fundamental rating for GIB stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIB.
What is the valuation status for GIB stock?
ChartMill assigns a valuation rating of 7 / 10 to CGI INC (GIB). This can be considered as Undervalued.
How profitable is CGI INC (GIB) stock?
CGI INC (GIB) has a profitability rating of 7 / 10.
What is the expected EPS growth for CGI INC (GIB) stock?
The Earnings per Share (EPS) of CGI INC (GIB) is expected to grow by 11.07% in the next year.
Is the dividend of CGI INC sustainable?
The dividend rating of CGI INC (GIB) is 3 / 10 and the dividend payout ratio is 8.3%.