CGI INC (GIB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIB - CA12532H1047 - Common Stock
91.74 USD
+0.25 (+0.27%)
GIB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. GIB scores excellent on profitability, but there are some minor concerns on its financial health. GIB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GIB was profitable.
GIB had a positive operating cash flow in the past year.
Each year in the past 5 years GIB has been profitable.
GIB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIB's Return On Assets of 8.49% is amongst the best of the industry. GIB outperforms 81.18% of its industry peers.
Looking at the Return On Equity, with a value of 16.13%, GIB belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.30%, GIB belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
GIB had an Average Return On Invested Capital over the past 3 years of 14.07%. This is significantly below the industry average of 29.77%.
| 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 has a Profit Margin of 10.42%. This is in the better half of the industry: GIB outperforms 78.82% of its industry peers.
In the last couple of years the Profit Margin of GIB has grown nicely.
GIB has a Operating Margin of 16.30%. This is amongst the best in the industry. GIB outperforms 85.88% of its industry peers.
In the last couple of years the Operating Margin of GIB has remained more or less at the same level.
With a Gross Margin value of 16.41%, GIB is not doing good in the industry: 85.88% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GIB 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) well above the Cost of Capital (WACC), GIB is creating value.
Compared to 1 year ago, GIB has less shares outstanding
Compared to 5 years ago, GIB has less shares outstanding
GIB has a worse debt/assets ratio than last year.
2.2 Solvency
GIB has an Altman-Z score of 3.60. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
GIB has a better Altman-Z score (3.60) than 63.53% of its industry peers.
GIB has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as GIB would need 2.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.32, GIB is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
GIB has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.32, GIB perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.83
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.99 indicates that GIB may have some problems paying its short term obligations.
GIB has a worse Current ratio (0.99) than 77.65% of its industry peers.
A Quick Ratio of 0.72 indicates that GIB may have some problems paying its short term obligations.
GIB has a Quick ratio of 0.72. This is amonst the worse of the industry: GIB underperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
GIB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.04%, which is quite good.
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 8.43%.
GIB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.52% yearly.
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 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.64% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y9.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.39, GIB is valued correctly.
75.29% of the companies in the same industry are more expensive than GIB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.41. GIB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.89 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 77.65% of the companies in the same industry.
GIB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
78.82% of the companies in the same industry are more expensive than GIB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GIB is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| EV/EBITDA | 9.81 |
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 may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.37
EPS Next 2Y9.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, GIB is not a good candidate for dividend investing.
GIB's Dividend Yield is a higher than the industry average which is at 2.00.
With a Dividend Yield of 0.50, GIB pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
8.14% of the earnings are spent on dividend by GIB. This is a low number and sustainable payout ratio.
DP8.14%
EPS Next 2Y9.64%
EPS Next 3YN/A
NYSE:GIB (12/5/2025, 9:48:09 AM)
91.74
+0.25 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner Change1.06%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap20.10B
Revenue(TTM)15.91B
Net Income(TTM)1.66B
Analysts78.1
Price Target109.07 (18.89%)
Short Float %1.92%
Short Ratio10.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.43
Dividend Growth(5Y)N/A
DP8.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-10.43%
PT rev (3m)-10.1%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.89 | ||
| P/S | 1.77 | ||
| P/FCF | 15.06 | ||
| P/OCF | 12.57 | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)5.96
EY6.5%
EPS(NY)6.61
Fwd EY7.2%
FCF(TTM)6.09
FCFY6.64%
OCF(TTM)7.3
OCFY7.95%
SpS51.97
BVpS33.58
TBVpS-8.89
PEG (NY)1.41
PEG (5Y)1.37
Graham Number67.11
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 | 3.6 |
F-Score5
WACC7.25%
ROIC/WACC1.83
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 Y10.92%
EPS Next 2Y9.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
Revenue Next Year5.25%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.98%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year31.87%
EBIT Next 3YN/A
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 FAQ
What is the fundamental rating for GIB stock?
ChartMill assigns a fundamental rating of 5 / 10 to GIB.
Can you provide the valuation status for CGI INC?
ChartMill assigns a valuation rating of 5 / 10 to CGI INC (GIB). This can be considered as Fairly Valued.
What is the profitability of GIB stock?
CGI INC (GIB) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for GIB stock?
The Earnings per Share (EPS) of CGI INC (GIB) is expected to grow by 10.92% in the next year.
How sustainable is the dividend of CGI INC (GIB) stock?
The dividend rating of CGI INC (GIB) is 2 / 10 and the dividend payout ratio is 8.14%.