CGI INC (GIB) Stock Fundamental Analysis
NYSE:GIB - New York Stock Exchange, Inc. - CA12532H1047 - Common Stock - Currency: USD
Taking everything into account, GIB scores 5 out of 10 in our fundamental rating. GIB was compared to 82 industry peers in the IT Services industry. Both the profitability and the financial health of GIB get a neutral evaluation. Nothing too spectacular is happening here. GIB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GIB had positive earnings in the past year.
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 Return On Assets of 9.32%. This is in the better half of the industry: GIB outperforms 78.05% of its industry peers.
GIB's Return On Equity of 17.15% is fine compared to the rest of the industry. GIB outperforms 79.27% of its industry peers.
The Return On Invested Capital of GIB (12.18%) is better than 75.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIB is significantly below the industry average of 22.13%.
| 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 has a better Profit Margin (11.52%) than 84.15% of its industry peers.
GIB's Profit Margin has improved in the last couple of years.
The Operating Margin of GIB (16.30%) is better than 86.59% of its industry peers.
GIB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.37%, GIB is doing worse than 87.80% of the companies in the same industry.
GIB'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 is creating some value.
The number of shares outstanding for GIB has been reduced compared to 1 year ago.
Compared to 5 years ago, GIB has less shares outstanding
GIB has a better debt/assets ratio than last year.
2.2 Solvency
GIB has an Altman-Z score of 4.20. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GIB (4.20) is better than 69.51% of its industry peers.
The Debt to FCF ratio of GIB is 2.35, which is a good value as it means it would take GIB, 2.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.35, GIB is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
GIB has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, GIB perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.48
WACC8.24%
2.3 Liquidity
GIB has a Current Ratio of 1.27. This is a normal value and indicates that GIB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GIB (1.27) is worse than 65.85% of its industry peers.
GIB has a Quick Ratio of 1.27. 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 has a Quick ratio of 0.92. This is in the lower half of the industry: GIB underperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.17% over the past year.
Measured over the past years, GIB 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 shows a small growth in Revenue. The Revenue has grown by 4.60% in the last year.
GIB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
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
GIB is valuated rather expensively with a Price/Earnings ratio of 18.76.
Based on the Price/Earnings ratio, GIB is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.19. GIB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.82, which indicates a correct valuation of GIB.
GIB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIB is cheaper than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, GIB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 76.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.96 | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
The 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)1.43
PEG (5Y)1.86
EPS Next 2Y10.95%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
GIB has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 2.34, GIB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, GIB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
GIB does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.95%
EPS Next 3Y9.61%
NYSE:GIB (5/30/2025, 11:15:02 AM)
107.49
-0.15 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.77%
Inst Owner Change2.37%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap24.10B
Analysts76.36
Price Target122.42 (13.89%)
Short Float %1.54%
Short Ratio9.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)-1.71%
PT rev (3m)1.88%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.82 | ||
| P/S | 2.2 | ||
| P/FCF | 17.96 | ||
| P/OCF | 15.07 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.14 |
EPS(TTM)5.73
EY5.33%
EPS(NY)6.79
Fwd EY6.32%
FCF(TTM)5.98
FCFY5.57%
OCF(TTM)7.13
OCFY6.64%
SpS48.86
BVpS32.83
TBVpS-7.97
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
WACC8.24%
ROIC/WACC1.48
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%