CGI INC (GIB) Stock Fundamental Analysis
USA - NYSE:GIB - CA12532H1047 - Common Stock
87.1 USD
+1.15 (+1.34%)
87.1 USD
0 (0%)
GIB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 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 has a correct valuation and a medium 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.
Each year in the past 5 years GIB has been profitable.
Each year in the past 5 years GIB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.93%, GIB belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
The Return On Equity of GIB (16.78%) is better than 80.00% of its industry peers.
The Return On Invested Capital of GIB (12.44%) is better than 80.00% 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 27.89%.
| 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
With a decent Profit Margin value of 11.01%, GIB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
GIB's Profit Margin has improved in the last couple of years.
GIB's Operating Margin of 16.27% is amongst the best of the industry. GIB outperforms 85.88% of its industry peers.
In the last couple of years the Operating Margin of GIB has grown nicely.
Looking at the Gross Margin, with a value of 16.35%, GIB is doing worse than 88.24% of the companies in the same industry.
GIB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| 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
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
GIB has less shares outstanding than it did 5 years ago.
GIB has a better debt/assets ratio than last year.
2.2 Solvency
GIB has an Altman-Z score of 3.63. This indicates that GIB is financially healthy and has little risk of bankruptcy at the moment.
GIB's Altman-Z score of 3.63 is in line compared to the rest of the industry. GIB outperforms 60.00% of its industry peers.
The Debt to FCF ratio of GIB is 2.32, which is a good value as it means it would take GIB, 2.32 years of fcf income to pay off 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.
GIB has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
GIB has a Debt to Equity ratio of 0.40. This is comparable to the rest of the industry: GIB outperforms 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.58
WACC7.9%
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.
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 Quick ratio of 0.94. This is amonst the worse of the industry: GIB underperforms 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.13% 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.
The Revenue has been growing slightly by 7.13% in the past year.
The Revenue has been growing slightly by 3.92% on average over the past years.
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.
GIB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GIB is valuated correctly with a Price/Earnings ratio of 14.97.
Compared to the rest of the industry, the Price/Earnings ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 76.47% of the companies listed in the same industry.
GIB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.15 indicates a correct valuation of GIB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIB indicates a somewhat cheap valuation: GIB is cheaper than 77.65% of the companies listed in the same industry.
GIB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than the industry average as 77.65% 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 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.63 | ||
| EV/EBITDA | 9.47 |
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)1.48
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.
GIB's Dividend Yield is a higher than the industry average which is at 2.50.
With a Dividend Yield of 0.49, GIB pays less dividend than the S&P500 average, which is at 2.31.
| 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%
87.1
+1.15 (+1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner Change-0.83%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap19.23B
Revenue(TTM)15.56B
Net Income(TTM)1.71B
Analysts78
Price Target121.78 (39.82%)
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)-0.64%
PT rev (3m)-3.12%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.15 | ||
| P/S | 1.72 | ||
| P/FCF | 14.63 | ||
| P/OCF | 12.18 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.47 |
EPS(TTM)5.82
EY6.68%
EPS(NY)6.62
Fwd EY7.6%
FCF(TTM)5.95
FCFY6.83%
OCF(TTM)7.15
OCFY8.21%
SpS50.59
BVpS33.2
TBVpS-7.63
PEG (NY)1.25
PEG (5Y)1.48
Graham Number65.93
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 | 3.63 |
F-Score5
WACC7.9%
ROIC/WACC1.58
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 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 6 / 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.