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CGI

TSX:GIB.A
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GIB.A
TSX
CA$24B
Market Cap
  1. Home
  2. CA
  3. Software
Company description

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. The last earnings update was 49 days ago. More info.


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GIB.A Share Price and Events
7 Day Returns
-0%
TSX:GIB.A
-0.6%
CA IT
0.3%
CA Market
1 Year Returns
18.9%
TSX:GIB.A
12.9%
CA IT
0.7%
CA Market
GIB.A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CGI (GIB.A) -0% 1.9% 11.6% 18.9% 47.2% 161.3%
CA IT -0.6% 1.9% 8.6% 12.9% 49% 154.8%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • GIB.A outperformed the IT industry which returned 12.9% over the past year.
  • GIB.A outperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
GIB.A
Industry
5yr Volatility vs Market

GIB.A Value

 Is CGI undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CGI to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CGI.

TSX:GIB.A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:GIB.A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.51 (1 + (1- 26.5%) (9.17%))
0.695
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:GIB.A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CGI is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:GIB.A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.72%)
2019 1,400.03 Analyst x6 1,311.94
2020 1,508.37 Analyst x7 1,324.52
2021 1,595.68 Est @ 5.79% 1,313.02
2022 1,669.66 Est @ 4.64% 1,287.44
2023 1,733.59 Est @ 3.83% 1,252.62
2024 1,790.19 Est @ 3.26% 1,212.12
2025 1,841.55 Est @ 2.87% 1,168.44
2026 1,889.30 Est @ 2.59% 1,123.30
2027 1,934.62 Est @ 2.4% 1,077.87
2028 1,978.41 Est @ 2.26% 1,032.91
Present value of next 10 years cash flows CA$12,104.17
TSX:GIB.A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$1,978.41 × (1 + 1.95%) ÷ (6.72% – 1.95%)
CA$42,301.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$42,301.37 ÷ (1 + 6.72%)10
CA$22,085.12
TSX:GIB.A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$12,104.17 + CA$22,085.12
CA$34,189.29
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$34,189.29 / 273.19
CA$125.15
TSX:GIB.A Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$125.15
Current discount Discount to share price of CA$89.53
= -1 x (CA$89.53 - CA$125.15) / CA$125.15
28.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CGI is available for.
Intrinsic value
28%
Share price is CA$89.53 vs Future cash flow value of CA$125.15
Current Discount Checks
For CGI to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CGI's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CGI's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CGI's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CGI's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:GIB.A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$4.15
TSX:GIB.A Share Price ** TSX (2019-03-20) in CAD CA$89.53
North America IT Industry PE Ratio Median Figure of 82 Publicly-Listed IT Companies 29.36x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CGI.

TSX:GIB.A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:GIB.A Share Price ÷ EPS (both in CAD)

= 89.53 ÷ 4.15

21.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is good value based on earnings compared to the North America IT industry average.
  • CGI is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does CGI's expected growth come at a high price?
Raw Data
TSX:GIB.A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
6.6%per year
North America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.46x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:GIB.A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.58x ÷ 6.6%

3.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CGI's assets?
Raw Data
TSX:GIB.A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$25.24
TSX:GIB.A Share Price * TSX (2019-03-20) in CAD CA$89.53
Canada IT Industry PB Ratio Median Figure of 27 Publicly-Listed IT Companies 2.31x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:GIB.A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:GIB.A Share Price ÷ Book Value per Share (both in CAD)

= 89.53 ÷ 25.24

3.55x

* Primary Listing of CGI.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is overvalued based on assets compared to the CA IT industry average.
X
Value checks
We assess CGI's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. CGI has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GIB.A Future Performance

 How is CGI expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CGI expected to grow at an attractive rate?
  • CGI's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • CGI's earnings growth is positive but not above the Canada market average.
  • CGI's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:GIB.A Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:GIB.A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 6.6%
TSX:GIB.A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.1%
Canada IT Industry Earnings Growth Rate Market Cap Weighted Average 7%
Canada IT Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:GIB.A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:GIB.A Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 12,670 1,441 4
2020-09-30 12,411 1,809 1,379 15
2019-09-30 11,972 1,710 1,296 14
TSX:GIB.A Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 11,654 1,475 1,168
2018-09-30 11,507 1,493 1,141
2018-06-30 11,316 1,505 1,056
2018-03-31 11,212 1,478 1,045
2017-12-31 10,986 1,419 1,045
2017-09-30 10,845 1,359 1,035
2017-06-30 10,819 1,408 1,101
2017-03-31 10,650 1,469 1,098
2016-12-31 10,675 1,355 1,107
2016-09-30 10,683 1,333 1,069
2016-06-30 10,686 1,383 1,027
2016-03-31 10,578 1,245 1,011

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CGI's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • CGI's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:GIB.A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from CGI Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GIB.A Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 5.42 5.61 5.23 2.00
2020-09-30 4.96 5.10 4.81 5.00
2019-09-30 4.59 4.71 4.48 5.00
TSX:GIB.A Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 4.15
2018-09-30 4.02
2018-06-30 3.68
2018-03-31 3.60
2017-12-31 3.56
2017-09-30 3.48
2017-06-30 3.67
2017-03-31 3.64
2016-12-31 3.64
2016-09-30 3.51
2016-06-30 3.35
2016-03-31 3.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CGI is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CGI's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CGI has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GIB.A Past Performance

  How has CGI performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CGI's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CGI's year on year earnings growth rate has been positive over the past 5 years.
  • CGI's 1-year earnings growth exceeds its 5-year average (11.8% vs 8%)
  • CGI's earnings growth has not exceeded the North America IT industry average in the past year (11.8% vs 14.6%).
Earnings and Revenue History
CGI's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CGI Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GIB.A Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,653.88 1,167.61 1,369.42
2018-09-30 11,506.83 1,141.40 1,369.42
2018-06-30 11,315.96 1,056.38 1,273.94
2018-03-31 11,212.07 1,044.74 1,273.94
2017-12-31 10,986.24 1,044.81 1,273.94
2017-09-30 10,845.07 1,035.20 1,273.94
2017-06-30 10,819.40 1,101.17 1,243.14
2017-03-31 10,649.69 1,098.36 1,243.14
2016-12-31 10,675.31 1,106.65 1,243.14
2016-09-30 10,683.26 1,068.72 1,243.14
2016-06-30 10,686.11 1,027.17 1,220.99
2016-03-31 10,578.36 1,010.57 1,220.99
2015-12-31 10,429.52 979.01 1,220.99
2015-09-30 10,287.10 977.56 1,220.99
2015-06-30 10,185.49 958.38 1,260.96
2015-03-31 10,293.18 926.23 1,260.96
2014-12-31 10,396.24 905.91 1,260.96
2014-09-30 10,499.69 859.44 1,260.96
2014-06-30 10,474.23 786.76 1,311.32
2014-03-31 10,374.45 739.83 1,311.32
2013-12-31 10,196.41 623.17 1,311.32
2013-09-30 10,084.62 455.82 1,311.32
2013-06-30 9,236.08 146.83 592.37
2013-03-31 7,733.68 55.89 592.37
2012-12-31 6,273.24 47.43 592.37
2012-09-30 4,772.45 131.53 592.37
2012-06-30 4,168.46 369.03 494.29
2012-03-31 4,116.44 405.01 494.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CGI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CGI used its assets more efficiently than the North America IT industry average last year based on Return on Assets.
  • CGI has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CGI's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CGI has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GIB.A Health

 How is CGI's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CGI's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CGI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CGI's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CGI's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CGI Company Filings, last reported 2 months ago.

TSX:GIB.A Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,931.98 2,243.56 406.13
2018-09-30 6,684.81 1,873.92 184.09
2018-06-30 6,729.49 1,901.10 171.10
2018-03-31 6,860.03 1,853.33 287.55
2017-12-31 6,553.08 1,907.16 238.94
2017-09-30 6,202.63 1,940.70 165.87
2017-06-30 6,641.95 1,786.51 302.94
2017-03-31 6,407.93 1,811.71 282.04
2016-12-31 6,358.20 1,839.29 313.91
2016-09-30 6,464.61 1,957.10 596.53
2016-06-30 6,102.27 1,956.80 283.68
2016-03-31 5,985.16 2,119.84 168.92
2015-12-31 6,438.63 2,177.89 552.35
2015-09-30 6,082.17 2,128.17 305.26
2015-06-30 5,790.80 2,100.97 264.70
2015-03-31 5,518.45 2,133.79 223.51
2014-12-31 5,217.07 2,454.30 489.58
2014-09-30 4,988.73 2,690.56 535.72
2014-06-30 4,787.80 2,560.38 131.32
2014-03-31 4,688.55 2,859.19 133.75
2013-12-31 4,298.93 3,146.40 206.51
2013-09-30 4,055.70 2,880.54 106.20
2013-06-30 3,939.88 3,057.93 165.31
2013-03-31 3,682.83 3,105.33 167.71
2012-12-31 3,494.21 3,141.30 161.58
2012-09-30 3,422.90 3,252.61 127.56
2012-06-30 2,538.02 728.75 82.29
2012-03-31 2,437.88 881.27 70.21
  • CGI's level of debt (32.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (73% vs 32.4% today).
  • Debt is well covered by operating cash flow (65.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.1x coverage).
X
Financial health checks
We assess CGI's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CGI has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GIB.A Dividends

 What is CGI's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CGI dividends. Estimated to be 0% next year.
If you bought CA$2,000 of CGI shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CGI's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CGI's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:GIB.A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
North America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:GIB.A Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.00 2.00
2020-09-30 0.00 3.00
2019-09-30 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CGI has not reported any payouts.
  • Unable to verify if CGI's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CGI's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CGI has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CGI's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess CGI's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CGI afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CGI has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GIB.A Management

 What is the CEO of CGI's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
George Schindler
COMPENSATION CA$8,568,137
AGE 55
TENURE AS CEO 2.4 years
CEO Bio

Mr. George D. Schindler has been the Chief Executive Officer, President and Director at CGI Group Inc. since October 1, 2016. Mr. Schindler served as the Chief Operating Officer at CGI Group Inc. since May 2014 until October 1, 2016 and served as its President of CGI United States. Mr. Schindler served as the President of United States and Canada at CGI Group Inc., since January 30, 2013 and served as its President U.S. Operations since October 2011. As a member of CGI’s Management Committee, he also participated in the development and execution of CGI’s global strategy. He served as the President of Stanley, Inc., since August 2010. He served as the President of CGI Federal Inc. from 2006 to October 1, 2011, where he led CGI’s business with the Civilian, Defense and Intelligence Sectors of the U.S. government. Under his leadership, CGI Federal was named the 2010 Greater Washington U.S. Government Contractor of the Year (greater than $300 million) by the Fairfax County Chamber of Commerce, PSC and Washington Technology. CGI was also named one of the “9 Hot Companies to Watch” by Federal Computer Week. Prior to leading CGI Federal, Mr. Schindler was the U.S. Lead of the Banking and Investments Industry Group. As a Senior Vice-President, he also had responsibility for managing CGI’s operations in the Greater New York Region. Before joining CGI, he served as a Vice President at American Management Systems, Inc., (AMS) where he held various management and consulting positions in both the government and commercial sector business groups. He served as a Director at Stanley, Inc., since August 2010. He is a Vice-Chair of the Public Sector Division of the TechAmerica Board (The Technology Association of America) as well as the Boards of Directors for the Professional Services Council (PSC), the Northern Virginia Technology Council and The Catalogue for Philanthropy—Greater Washington. He was appointed as a Trustee for the Committee for Economic Development. He has been recognized by industry as a market leader, including being named one of Federal Computer Week’s top 100 federal leaders and one of ExecutiveBiz’s “Top 20 People to Watch.” Mr. Schindler holds a Bachelors of Science Degree in Computer Science from Purdue University.

CEO Compensation
  • George's compensation has been consistent with company performance over the past year.
  • George's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the CGI management team in years:

4.3
Average Tenure
61.5
Average Age
  • The tenure for the CGI management team is about average.
Management Team

Serge Godin

TITLE
Founder & Executive Chairman of the Board
COMPENSATION
CA$14M
AGE
69
TENURE
43.2 yrs

George Schindler

TITLE
President
COMPENSATION
CA$9M
AGE
55
TENURE
2.4 yrs

Julie Godin

TITLE
Vice-Chair of the Board
AGE
43
TENURE
2.4 yrs

André Imbeau

TITLE
Co-Founder & Director
AGE
68
TENURE
43.2 yrs

François Boulanger

TITLE
Executive VP & CFO
COMPENSATION
CA$3M
TENURE
4.4 yrs

Dave Henderson

TITLE
President of United States Operations
COMPENSATION
CA$2M
TENURE
1.3 yrs

Jean-Michel Baticle

TITLE
President of Western & Southern Europe Operations
COMPENSATION
CA$2M

Stuart Forman

TITLE
Senior VP & Global Chief Information Officer

Lorne Gorber

TITLE
Executive Vice-President of Investor & Public Relations
TENURE
4.2 yrs

Benoit Dubé

TITLE
Executive VP of Legal & Economic Affairs and Corporate Secretary
TENURE
8.8 yrs
Board of Directors Tenure

Average tenure and age of the CGI board of directors in years:

9.3
Average Tenure
66.5
Average Age
  • The tenure for the CGI board of directors is about average.
Board of Directors

George Schindler

TITLE
President
COMPENSATION
CA$9M
AGE
55
TENURE
2.4 yrs

Julie Godin

TITLE
Vice-Chair of the Board
AGE
43
TENURE
2.6 yrs

André Imbeau

TITLE
Co-Founder & Director
AGE
68
TENURE
43.2 yrs

Paule Doré

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
67
TENURE
24.2 yrs

Serge Godin

TITLE
Founder & Executive Chairman of the Board
COMPENSATION
CA$14M
AGE
69
TENURE
13.2 yrs

Gilles Labbé

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
62
TENURE
9.2 yrs

Alain Bouchard

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
69
TENURE
5.8 yrs

Michael Roach

TITLE
Director
COMPENSATION
CA$215K
AGE
66
TENURE
12.8 yrs

Dick Evans

TITLE
Independent Director
COMPENSATION
CA$301K
AGE
71
TENURE
9.5 yrs

Joakim Westh

TITLE
Independent Director
COMPENSATION
CA$371K
AGE
57
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • CGI insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
27. Feb 19 Sell Michael Roach Individual 25. Feb 19 26. Feb 19 -74,800 CA$89.30 CA$-6,652,991
26. Feb 19 Sell Michael Roach Individual 22. Feb 19 22. Feb 19 -45,600 CA$88.50 CA$-4,029,350
25. Feb 19 Sell Michael Roach Individual 21. Feb 19 21. Feb 19 -99,600 CA$88.50 CA$-8,798,038
22. Feb 19 Sell Paule Doré Individual 19. Feb 19 19. Feb 19 -19,660 CA$88.17 CA$-1,730,991
14. Feb 19 Buy Michael Pedersen Individual 12. Feb 19 12. Feb 19 11,350 CA$88.18 CA$999,743
23. Nov 18 Sell Gilles Labbé Individual 21. Nov 18 21. Nov 18 -5,000 CA$82.96 CA$-414,800
21. Nov 18 Sell Gilles Labbé Individual 16. Nov 18 16. Nov 18 -5,000 CA$82.96 CA$-414,800
19. Nov 18 Sell Fondation Jeunesse-Vie Company 16. Nov 18 16. Nov 18 -100,000 CA$82.08 CA$-8,207,890
07. Sep 18 Sell Kevin Linder Individual 07. Sep 18 07. Sep 18 -565 CA$85.04 CA$-48,049
23. May 18 Sell 9102-7003 Québec Inc. Company 18. May 18 18. May 18 -48,300 CA$77.00 CA$-3,719,332
23. May 18 Sell André Imbeau Individual 18. May 18 18. May 18 -29,000 CA$77.25 CA$-2,240,250
22. May 18 Sell 9102-7003 Québec Inc. Company 16. May 18 16. May 18 -154,500 CA$77.01 CA$-11,897,489
18. May 18 Sell 9102-7003 Québec Inc. Company 14. May 18 15. May 18 -307,388 CA$77.76 CA$-23,740,866
18. May 18 Buy Timothy Hearn Individual 16. May 18 16. May 18 2,000 CA$77.00 CA$154,000
17. May 18 Sell 9102-7003 Québec Inc. Company 11. May 18 11. May 18 -288,400 CA$77.36 CA$-22,310,047
15. May 18 Sell André Imbeau Individual 10. May 18 10. May 18 -187,231 CA$77.66 CA$-14,538,363
14. May 18 Sell Mark Boyajian Individual 09. May 18 09. May 18 -2,216 CA$77.30 CA$-171,302
14. May 18 Sell André Imbeau Individual 09. May 18 09. May 18 -100,000 CA$77.62 CA$-7,761,810
11. May 18 Buy Michael Pedersen Individual 09. May 18 09. May 18 13,000 CA$77.34 CA$1,005,233
X
Management checks
We assess CGI's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CGI has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GIB.A News

Simply Wall St News

Can You Imagine How Chuffed CGI's (TSE:GIB.A) Shareholders Feel About Its 161% Share Price Gain?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, CGI achieved compound earnings per share (EPS) growth of 15% per year. … This EPS growth is slower than the share price growth of 21% per year, over the same period.

Simply Wall St -

CGI Inc.'s (TSE:GIB.A) Earnings Grew 12%, Did It Beat Long-Term Trend?

(TSE:GIB.A) announced its most recent earnings (31 December 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Were GIB.A's earnings stronger than its past performances and the industry. … GIB.A's trailing twelve-month earnings (from 31 December 2018) of CA$1.2b has.

Simply Wall St -

Read This Before You Buy CGI Inc. (TSE:GIB.A) Because Of Its P/E Ratio

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate CGI's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Percentage Of CGI Inc. (TSE:GIB.A) Shares Do Insiders Own?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies of this size are usually well known to retail investors, too. … institutional investors have bought into the company.

Simply Wall St -

CGI Group Inc. (TSE:GIB.A) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in CGI Group Inc. … CGI Group Insider Transactions Over The Last Year. … That means that an insider was selling shares at slightly below the current price (CA$86.85).

Simply Wall St -

A Look At The Intrinsic Value Of CGI Group Inc. (TSE:GIB.A)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Will CGI Group Inc.'s (TSE:GIB.A) Earnings Grow Over The Next Few Years?

In September 2018, CGI Group Inc. … (TSE:GIB.A) released its most recent earnings announcement, whicha … suggested

Simply Wall St -

One Factor To Consider Before Investing In CGI Group Inc. (TSE:GIB.A)

I will take you through CGI Group’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … CGI Group generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of CGI Group’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Has CGI Group Inc (TSE:GIB.A) Improved Earnings Growth In Recent Times?

After reading CGI Group Inc's (TSE:GIB.A) most recent earnings announcement (30 September 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Were GIB.A's earnings stronger than its past performances and the industry. … GIB.A's trailing twelve-month earnings (from 30 September 2018) of CA$1.1b has.

Simply Wall St -

What You Must Know About CGI Group Inc's (TSE:GIB.A) Financial Health

Investors looking for stocks with high market liquidity and little debt on the balance sheet should consider CGI Group Inc (TSE:GIB.A). … With a market valuation of CA$23b, GIB.A is a safe haven in times of market uncertainty due to its strong balance sheet. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates.

Simply Wall St -

GIB.A Company Info

Description

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities. The company also offers application development, management, testing, portfolio management, and modernization services; business consulting, including agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific services; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure consulting, solutions, and services. It serves clients operating in government, financial services, health, utility, communication, oil and gas, manufacturing, retail and consumer service, transportation, and post and logistics sectors. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

Details
Name: CGI Inc.
GIB.A
Exchange: TSX
Founded: 1976
CA$24,458,567,389
273,188,511
Website: http://www.cgi.com
Address: CGI Inc.
1350 René-Lévesque Boulevard West,
15th Floor,
Montreal,
Quebec, H3G 1T4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX GIB.A Class A Shares The Toronto Stock Exchange CA CAD 31. Aug 1988
NYSE GIB Class A Shares New York Stock Exchange US USD 31. Aug 1988
DB CJ5A Class A Shares Deutsche Boerse AG DE EUR 31. Aug 1988
Number of employees
Current staff
Staff numbers
74,000
CGI employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:37
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/12
Last earnings filing: 2019/01/30
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.