Capgemini SE (EPA:CAP) Shares Could Be 26% Below Their Intrinsic Value Estimate
Dec 03
French (CAC) IT Industry Analysis
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies30
- 7D2.0%
- 3M3.2%
- 1Y2.6%
- YTD9.1%
Over the last 7 days, the IT industry has risen 2.0%, driven by gains from Capgemini of 2.7%. During this same period, the Atos underperformed, falling 15%. Overall in the last year, the industry is flat. Looking forward, earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the French IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | €50.1b | €54.3b | €1.5b | 17.9x | 33.1x | 0.9x |
| Wed, 01 Nov 2023 | €44.5b | €54.3b | €1.5b | 16.5x | 29.4x | 0.8x |
| Fri, 29 Sep 2023 | €45.9b | €54.3b | €1.5b | 16.8x | 30x | 0.8x |
| Sun, 27 Aug 2023 | €46.5b | €53.9b | €1.6b | 17.2x | 28.2x | 0.9x |
| Tue, 25 Jul 2023 | €49.2b | €52.6b | €1.6b | 19.1x | 30.8x | 0.9x |
| Thu, 22 Jun 2023 | €49.5b | €52.6b | €1.6b | 18.9x | 31x | 0.9x |
| Sat, 20 May 2023 | €48.9b | €52.4b | €1.5b | 18.7x | 32.5x | 0.9x |
| Mon, 17 Apr 2023 | €49.1b | €52.3b | €1.6b | 16.4x | 31.6x | 0.9x |
| Wed, 15 Mar 2023 | €61.2b | €56.7b | €1.8b | 18x | 34.8x | 1.1x |
| Fri, 10 Feb 2023 | €64.9b | €52.9b | -€990,618,094.00 | 20x | -65.5x | 1.2x |
| Sun, 08 Jan 2023 | €58.3b | €52.8b | -€992,695,310.00 | 18.1x | -58.8x | 1.1x |
| Tue, 06 Dec 2022 | €60.3b | €52.7b | -€999,188,799.00 | 17.5x | -60.3x | 1.1x |
| Thu, 03 Nov 2022 | €57.0b | €52.7b | -€1,008,538,731.00 | 16.5x | -56.5x | 1.1x |
| Sat, 01 Oct 2022 | €56.0b | €52.6b | -€1,009,580,854.00 | 16x | -55.5x | 1.1x |
| Mon, 29 Aug 2022 | €60.2b | €51.7b | -€1,203,146,619.00 | 20.2x | -50.1x | 1.2x |
| Wed, 27 Jul 2022 | €57.8b | €49.0b | -€1,080,353,619.00 | 19.7x | -53.5x | 1.2x |
| Fri, 24 Jun 2022 | €59.2b | €49.0b | -€1,081,260,652.00 | 19.5x | -54.8x | 1.2x |
| Sun, 22 May 2022 | €63.4b | €49.2b | -€1,016,293,652.00 | 22.6x | -62.4x | 1.3x |
| Tue, 19 Apr 2022 | €65.2b | €49.1b | -€981,861,089.00 | 22.6x | -66.4x | 1.3x |
| Thu, 17 Mar 2022 | €69.8b | €49.9b | -€893,977,067.00 | 22.7x | -78.1x | 1.4x |
| Sat, 12 Feb 2022 | €73.1b | €48.4b | €2.0b | 24.7x | 36.7x | 1.5x |
| Mon, 10 Jan 2022 | €76.1b | €48.4b | €2.0b | 25.1x | 38.2x | 1.6x |
| Wed, 08 Dec 2021 | €74.1b | €48.3b | €2.0b | 23.7x | 37.9x | 1.5x |
| Fri, 05 Nov 2021 | €77.6b | €48.2b | €1.9b | 24.4x | 40.1x | 1.6x |
| Sun, 03 Oct 2021 | €68.8b | €45.5b | €2.0b | 22.5x | 34.1x | 1.5x |
| Tue, 31 Aug 2021 | €74.2b | €45.2b | €2.0b | 29.4x | 37.9x | 1.6x |
| Wed, 07 Jul 2021 | €68.8b | €45.2b | €2.0b | 25x | 35.2x | 1.5x |
| Sat, 10 Apr 2021 | €64.7b | €44.1b | €2.1b | 22.6x | 31.3x | 1.5x |
| Fri, 01 Jan 2021 | €63.5b | €42.9b | €2.2b | 22.1x | 29.2x | 1.5x |
Price to Earnings Ratio
28.8x
Current Industry PE
- Investors are optimistic on the French IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 33.1x which is higher than its 3-year average PE of 1.1x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.92x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 11% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the French Tech industry?
| FR Market | 0.28% | |
| Tech | 2.27% | |
| IT | 1.95% | |
| IT Consulting | 1.95% | |
| Internet Services and Infrastructure | 1.92% | |
| Data Processing Services | -2.18% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 4.6x.
- Analysts are expecting annual earnings growth of 10.7%, which is lower than the prior year's growth of 14.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 85% over the next 5 years.
- This is better than its past earnings decline of 34% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CAP Capgemini | €187.00 | 2.7% +€851.0m | 5.3% | PE19x | |
| NRO Neurones | €40.85 | 7.4% +€68.0m | 6.9% | PE20.8x | |
| SII SII | €51.70 | 6.2% +€58.0m | 13.3% | PE12.4x | |
| ATE Alten | €126.60 | 0.8% +€34.5m | 1.9% | PE10.2x | |
| OVH OVH Groupe | €8.55 | 2.0% +€32.3m | -39.1% | PS1.8x |
