CGI INC (GIB) Stock Fundamental Analysis
USA - NYSE:GIB - CA12532H1047 - Common Stock
89.98 USD
+0.85 (+0.95%)
89.98 USD
0 (0%)
GIB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the IT Services industry. While GIB has a great profitability rating, there are some minor concerns on its financial health. GIB is not valued too expensively and it also shows a decent 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.
In the past 5 years GIB has always been profitable.
In the past 5 years GIB always reported a positive cash flow from operatings.
1.2 Ratios
GIB's Return On Assets of 8.93% is amongst the best of the industry. GIB outperforms 82.76% of its industry peers.
GIB's Return On Equity of 16.78% is fine compared to the rest of the industry. GIB outperforms 79.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.44%, GIB belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIB is significantly below the industry average of 21.81%.
| 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
Looking at the Profit Margin, with a value of 11.01%, GIB belongs to the top of the industry, outperforming 80.46% 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 86.21% of its industry peers.
In the last couple of years the Operating Margin of GIB has grown nicely.
GIB's Gross Margin of 16.35% is on the low side compared to the rest of the industry. GIB is outperformed by 86.21% 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
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
Compared to 5 years ago, GIB has less shares outstanding
The debt/assets ratio for GIB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.70 indicates that GIB is not in any danger for bankruptcy at the moment.
GIB has a Altman-Z score of 3.70. This is in the better half of the industry: GIB outperforms 63.22% 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.
GIB's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. GIB outperforms 68.97% of its industry peers.
GIB has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GIB (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.53
WACC8.14%
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 Current ratio of 1.27. This is in the lower half of the industry: GIB underperforms 65.52% of its industry peers.
A Quick Ratio of 0.94 indicates that GIB may have some problems paying its short term obligations.
GIB's Quick ratio of 0.94 is on the low side compared to the rest of the industry. GIB is outperformed by 79.31% 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.
GIB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.08% yearly.
Looking at the last year, GIB shows a small growth in Revenue. The Revenue has grown by 7.13% 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)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
The Earnings Per Share is expected to grow by 9.70% on average over the next years. This is quite good.
GIB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
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
The Price/Earnings ratio is 15.43, which indicates a correct valuation of GIB.
Based on the Price/Earnings ratio, GIB is valued a bit cheaper than 78.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. GIB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.58, which indicates a correct valuation of GIB.
75.86% of the companies in the same industry are more expensive than GIB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GIB to the average of the S&P500 Index (23.21), we can say GIB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
78.16% 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 78.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 9.78 |
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)1.29
PEG (5Y)1.53
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, GIB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.48, GIB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GIB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
GIB is new to the dividend game and has less than 3 years of track record.
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%
89.98
+0.85 (+0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners69.56%
Inst Owner Change-3.82%
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap19.87B
Analysts78.1
Price Target122.56 (36.21%)
Short Float %1.7%
Short Ratio9.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)1.02%
PT rev (3m)-2.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 13.58 | ||
| P/S | 1.78 | ||
| P/FCF | 15.11 | ||
| P/OCF | 12.57 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)5.83
EY6.48%
EPS(NY)6.63
Fwd EY7.36%
FCF(TTM)5.95
FCFY6.62%
OCF(TTM)7.16
OCFY7.95%
SpS50.61
BVpS33.21
TBVpS-7.63
PEG (NY)1.29
PEG (5Y)1.53
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%
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 | 0.4 | ||
| 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 | 3.7 |
F-Score5
WACC8.14%
ROIC/WACC1.53
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 Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
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%