CGI INC (GIB) Stock Fundamental Analysis
USA - NYSE:GIB - CA12532H1047 - Common Stock
86.62 USD
-0.38 (-0.44%)
86.62 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GIB. GIB was compared to 85 industry peers in the IT Services industry. GIB has an excellent profitability rating, but there are some minor concerns on its financial health. GIB has a correct valuation and a medium growth rate.
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 has a Return On Assets of 8.93%. This is amongst the best in the industry. GIB outperforms 83.53% of its industry peers.
GIB's Return On Equity of 16.78% is fine compared to the rest of the industry. GIB outperforms 80.00% of its industry peers.
GIB has a better Return On Invested Capital (12.44%) than 80.00% of its industry peers.
GIB had an Average Return On Invested Capital over the past 3 years of 14.11%. This is significantly below the industry average of 27.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROIC | 12.44% |
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 (11.01%) than 81.18% of its industry peers.
GIB's Profit Margin has improved in the last couple of years.
GIB has a better Operating Margin (16.27%) than 85.88% of its industry peers.
GIB's Operating Margin has improved in the last couple of years.
GIB has a Gross Margin of 16.35%. This is amonst the worse of the industry: GIB underperforms 88.24% of its industry peers.
GIB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% |
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
GIB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GIB has been reduced compared to 1 year ago.
GIB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIB has been reduced compared to a year ago.
2.2 Solvency
GIB has an Altman-Z score of 3.67. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.67, GIB is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
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 69.41% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that GIB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, GIB is in line with its industry, outperforming 48.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.64
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GIB should not have too much problems paying its short term obligations.
GIB has a worse Current ratio (1.27) than 64.71% 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 worse Quick ratio (0.94) than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GIB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, 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 10.08% yearly.
GIB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.13%.
GIB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
EPS 1Y (TTM)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
3.2 Future
Based on estimates for the next years, GIB will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.70% on average per year.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
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 14.99, GIB is valued correctly.
Based on the Price/Earnings ratio, GIB is valued a bit cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIB to the average of the S&P500 Index (26.51), we can say GIB is valued slightly cheaper.
GIB is valuated correctly with a Price/Forward Earnings ratio of 13.17.
76.47% of the companies in the same industry are more expensive than GIB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.53. GIB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
GIB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GIB is cheaper than 76.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 78.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 9.64 |
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)1.25
PEG (5Y)1.49
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
GIB has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 2.59, GIB pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.49, GIB pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
DPN/A
EPS Next 2Y9.96%
EPS Next 3Y9.7%
86.62
-0.38 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner Change-0.89%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap19.13B
Revenue(TTM)15.56B
Net Income(TTM)1.71B
Analysts78
Price Target119.73 (38.22%)
Short Float %1.65%
Short Ratio10.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-2.61%
Min EPS beat(2)-3.28%
Max EPS beat(2)-1.94%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-3.28%
Max EPS beat(4)-1.94%
EPS beat(8)0
Avg EPS beat(8)-2.43%
EPS beat(12)2
Avg EPS beat(12)-1.7%
EPS beat(16)4
Avg EPS beat(16)-1.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)2
Avg Revenue beat(16)-2%
PT rev (1m)-2.32%
PT rev (3m)-4.76%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.72 | ||
| P/FCF | 14.66 | ||
| P/OCF | 12.19 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.64 |
EPS(TTM)5.78
EY6.67%
EPS(NY)6.58
Fwd EY7.59%
FCF(TTM)5.91
FCFY6.82%
OCF(TTM)7.1
OCFY8.2%
SpS50.23
BVpS32.96
TBVpS-7.58
PEG (NY)1.25
PEG (5Y)1.49
Graham Number65.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 16.78% | ||
| ROCE | 16.8% | ||
| ROIC | 12.44% | ||
| ROICexc | 13.46% | ||
| ROICexgc | 136.82% | ||
| OM | 16.27% | ||
| PM (TTM) | 11.01% | ||
| GM | 16.35% | ||
| FCFM | 11.77% |
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%
ROICexgc growth 3Y-9.92%
ROICexgc 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 | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 63.2% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 25.86 | ||
| Cash Conversion | 70.59% | ||
| Profit Quality | 106.88% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.67 |
F-Score5
WACC7.58%
ROIC/WACC1.64
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)8.13%
EPS 3Y11.94%
EPS 5Y10.08%
EPS Q2Q%9.95%
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.13%
Revenue growth 3Y6.57%
Revenue growth 5Y3.92%
Sales Q2Q%11.39%
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y6.51%
EBIT growth 3Y7.47%
EBIT growth 5Y6%
EBIT Next Year33.95%
EBIT Next 3Y13.78%
EBIT Next 5YN/A
FCF growth 1Y16.8%
FCF growth 3Y0.53%
FCF growth 5Y7.15%
OCF growth 1Y11.55%
OCF growth 3Y1.38%
OCF growth 5Y6.18%
CGI INC / GIB FAQ
What is the fundamental rating for GIB stock?
ChartMill assigns a fundamental rating of 6 / 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 11.98% in the next year.