CGI INC (GIB) Stock Fundamental Analysis
NYSE:GIB - CA12532H1047 - Common Stock
94.26 USD
+1.46 (+1.57%)
94.26 USD
0 (0%)
Taking everything into account, GIB scores 5 out of 10 in our fundamental rating. GIB was compared to 85 industry peers in the IT Services industry. GIB has an average financial health and profitability rating. 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.
In the past year GIB had a positive cash flow from operations.
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 82.35% of its industry peers.
The Return On Equity of GIB (16.78%) is better than 78.82% 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 21.77%.
| 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
The Profit Margin of GIB (11.01%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of GIB has grown nicely.
Looking at the Operating Margin, with a value of 16.27%, GIB belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
GIB's Operating Margin has improved in the last couple of years.
GIB's Gross Margin of 16.35% is on the low side compared to the rest of the industry. GIB is outperformed by 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIB is still creating some value.
GIB has less shares outstanding than it did 1 year ago.
GIB has less shares outstanding than it did 5 years ago.
GIB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.78 indicates that GIB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.78, GIB is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
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.
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 | 3.78 |
ROIC/WACC1.56
WACC7.96%
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 Current ratio of 1.27. This is in the lower half of the industry: GIB underperforms 67.06% 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.
The Earnings Per Share has been growing by 10.08% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 9.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y11.98%
EPS Next 2Y9.96%
EPS Next 3Y9.7%
EPS Next 5YN/A
Revenue Next Year8.53%
Revenue Next 2Y6.78%
Revenue Next 3Y5.71%
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.
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
Based on the Price/Earnings ratio of 16.11, the valuation of GIB can be described as correct.
Based on the Price/Earnings ratio, GIB is valued a bit cheaper than the industry average as 74.12% of the companies are valued more expensively.
GIB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 14.16, which indicates a correct valuation of GIB.
Based on the Price/Forward Earnings ratio, GIB is valued a bit cheaper than 75.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, GIB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIB is valued a bit cheaper than the industry average as 74.12% of the companies are valued more expensively.
GIB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIB is cheaper than 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.91 | ||
| EV/EBITDA | 10.19 |
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)1.35
PEG (5Y)1.6
EPS Next 2Y9.96%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
GIB has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 2.37, GIB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, GIB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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%
94.26
+1.46 (+1.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.17%
Inst Owner Change-3.82%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap21.01B
Analysts78.1
Price Target121.32 (28.71%)
Short Float %1.74%
Short Ratio11.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-2.51%
PT rev (3m)-3.55%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.87 | ||
| P/FCF | 15.91 | ||
| P/OCF | 13.23 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.19 |
EPS(TTM)5.85
EY6.21%
EPS(NY)6.66
Fwd EY7.06%
FCF(TTM)5.93
FCFY6.29%
OCF(TTM)7.12
OCFY7.56%
SpS50.36
BVpS33.05
TBVpS-7.6
PEG (NY)1.35
PEG (5Y)1.6
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 | 3.78 |
F-Score5
WACC7.96%
ROIC/WACC1.56
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 Year32.58%
EBIT Next 3Y13.07%
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%