CGI INC (GIB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIB - CA12532H1047 - Common Stock
91.8 USD
-0.84 (-0.91%)
91.8 USD
0 (0%)
Taking everything into account, GIB scores 5 out of 10 in our fundamental rating. GIB was compared to 88 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 decent growth rate and is not valued too expensively.
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.
- 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 80.68% of its industry peers.
- GIB has a Return On Equity of 16.13%. This is amongst the best in the industry. GIB outperforms 81.82% of its industry peers.
- GIB's Return On Invested Capital of 13.30% is amongst the best of the industry. GIB outperforms 85.23% 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 29.06%.
| 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
- With a decent Profit Margin value of 10.42%, GIB is doing good in the industry, outperforming 78.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of GIB has grown nicely.
- Looking at the Operating Margin, with a value of 16.30%, GIB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of GIB has remained more or less at the same level.
- GIB has a worse Gross Margin (16.41%) than 84.09% of its industry peers.
- GIB's Gross Margin has declined in the last couple of years.
| 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) just above the Cost of Capital (WACC), GIB is creating some value.
- The number of shares outstanding for GIB has been reduced compared to 1 year ago.
- The number of shares outstanding for GIB has been reduced compared to 5 years ago.
- Compared to 1 year ago, GIB has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.60 indicates that GIB is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.60, GIB is doing good in the industry, outperforming 60.23% 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.
- GIB has a better Debt to FCF ratio (2.32) than 65.91% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that GIB is not too dependend on debt financing.
- GIB has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: GIB outperforms 53.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.68
WACC7.91%
2.3 Liquidity
- GIB has a Current Ratio of 0.99. 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 Current ratio (0.99) than 78.41% of its industry peers.
- GIB has a Quick Ratio of 0.99. 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's Quick ratio of 0.72 is on the low side compared to the rest of the industry. GIB is outperformed by 85.23% 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.
- The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
- Looking at the last year, GIB shows a quite strong growth in Revenue. The Revenue has grown by 8.43% in the last year.
- 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
- The Earnings Per Share is expected to grow by 8.53% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 15.33, 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 75.00% 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 27.38.
- Based on the Price/Forward Earnings ratio of 13.82, the valuation of GIB can be described as correct.
- GIB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIB is cheaper than 77.27% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. GIB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIB indicates a rather cheap valuation: GIB is cheaper than 80.68% of the companies listed 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 77.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.97 | ||
| 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.
- The decent profitability rating of GIB may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.37
EPS Next 2Y9.58%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.48%, GIB is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.43, GIB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, GIB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
- GIB pays out 8.14% of its income as dividend. This is a sustainable payout ratio.
DP8.14%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
91.8
-0.84 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)01-28 2026-01-28
Inst Owners71.89%
Inst Owner Change-0.06%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap20.12B
Revenue(TTM)15.91B
Net Income(TTM)1.66B
Analysts76.19
Price Target109.63 (19.42%)
Short Float %1.7%
Short Ratio10.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.43
Dividend Growth(5Y)N/A
DP8.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.1%
PT rev (3m)-9.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 13.82 | ||
| P/S | 1.76 | ||
| P/FCF | 14.97 | ||
| P/OCF | 12.5 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)5.99
EY6.53%
EPS(NY)6.64
Fwd EY7.23%
FCF(TTM)6.13
FCFY6.68%
OCF(TTM)7.34
OCFY8%
SpS52.3
BVpS33.79
TBVpS-8.94
PEG (NY)1.42
PEG (5Y)1.37
Graham Number67.49
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
WACC7.91%
ROIC/WACC1.68
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 Y10.82%
EPS Next 2Y9.58%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)8.43%
Revenue growth 3Y7.34%
Revenue growth 5Y5.52%
Sales Q2Q%9.66%
Revenue Next Year5.33%
Revenue Next 2Y4.32%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y7.98%
EBIT growth 3Y7.66%
EBIT growth 5Y6.85%
EBIT Next Year29.29%
EBIT Next 3Y10.58%
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.
What is the valuation status of CGI INC (GIB) stock?
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.
What is the valuation of CGI INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CGI INC (GIB) is 15.33 and the Price/Book (PB) ratio is 2.72.
How financially healthy is CGI INC?
The financial health rating of CGI INC (GIB) is 5 / 10.