GIB.

CGITSX:GIB.A Stock Report

Market Cap

CA$27.7b

7D

-2.2%

1Y

26.0%

Updated

16 Sep, 2021

Data

Company Financials +
GIB.A fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends0/6

GIB.A Overview

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada; Western, Southern, Central, and Eastern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific.

CGI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CGI
Historical stock prices
Current Share PriceCA$112.61
52 Week HighCA$80.29
52 Week LowCA$116.88
Beta0.99
1 Month Change0.40%
3 Month Change1.12%
1 Year Change25.99%
3 Year Change31.62%
5 Year Change77.59%
Change since IPO89,988.00%

Recent News & Updates

Sep 15
Is CGI Inc. (TSE:GIB.A) Potentially Undervalued?

Is CGI Inc. (TSE:GIB.A) Potentially Undervalued?

CGI Inc. ( TSE:GIB.A ) had a relatively subdued couple of weeks in terms of changes in share price, which continued to...

Aug 24
Slowing Rates Of Return At CGI (TSE:GIB.A) Leave Little Room For Excitement

Slowing Rates Of Return At CGI (TSE:GIB.A) Leave Little Room For Excitement

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 13
Here's Why We Think CGI (TSE:GIB.A) Is Well Worth Watching

Here's Why We Think CGI (TSE:GIB.A) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

GIB.ACA ITCA Market
7D-2.2%1.4%-0.2%
1Y26.0%94.1%29.1%

Return vs Industry: GIB.A underperformed the Canadian IT industry which returned 92.5% over the past year.

Return vs Market: GIB.A underperformed the Canadian Market which returned 30% over the past year.

Price Volatility

Is GIB.A's price volatile compared to industry and market?
GIB.A volatility
GIB.A Beta0.99
Industry Beta1.23
Market Beta1

Stable Share Price: GIB.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GIB.A's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197678,000George Schindlerhttps://www.cgi.com

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada; Western, Southern, Central, and Eastern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; 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 and integration and maintenance, testing, portfolio management, and modernization services; business consulting; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure services.

Valuation

Is CGI undervalued compared to its fair value and its price relative to the market?

21.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GIB.A (CA$112.61) is trading above our estimate of fair value (CA$103.19)

Significantly Below Fair Value: GIB.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GIB.A is good value based on its PE Ratio (21.6x) compared to the Canadian IT industry average (47.4x).

PE vs Market: GIB.A is poor value based on its PE Ratio (21.6x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: GIB.A is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: GIB.A is good value based on its PB Ratio (4.2x) compared to the CA IT industry average (5.3x).


Future Growth

How is CGI forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIB.A's forecast earnings growth (6% per year) is above the savings rate (1.5%).

Earnings vs Market: GIB.A's earnings (6% per year) are forecast to grow slower than the Canadian market (12.1% per year).

High Growth Earnings: GIB.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: GIB.A's revenue (3.3% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: GIB.A's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GIB.A's Return on Equity is forecast to be low in 3 years time (16.7%).


Past Performance

How has CGI performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIB.A has high quality earnings.

Growing Profit Margin: GIB.A's current net profit margins (10.6%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: GIB.A's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: GIB.A's earnings growth over the past year (7.1%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: GIB.A earnings growth over the past year (7.1%) underperformed the IT industry 28%.


Return on Equity

High ROE: GIB.A's Return on Equity (19.3%) is considered low.


Financial Health

How is CGI's financial position?


Financial Position Analysis

Short Term Liabilities: GIB.A's short term assets (CA$4.3B) exceed its short term liabilities (CA$4.0B).

Long Term Liabilities: GIB.A's short term assets (CA$4.3B) exceed its long term liabilities (CA$4.0B).


Debt to Equity History and Analysis

Debt Level: GIB.A's debt to equity ratio (51.7%) is considered high.

Reducing Debt: GIB.A's debt to equity ratio has increased from 32% to 51.7% over the past 5 years.

Debt Coverage: GIB.A's debt is well covered by operating cash flow (60.9%).

Interest Coverage: GIB.A's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GIB.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GIB.A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GIB.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GIB.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GIB.A's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

George Schindler (58 yo)

4.92yrs

Tenure

CA$9,459,342

Compensation

Mr. George D. Schindler has been the Chief Executive Officer, President and Director at CGI Inc. since October 1, 2016. Mr. Schindler served as the Chief Operating Officer at CGI Inc. since May 2014 until...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD7.45M) is about average for companies of similar size in the Canadian market ($USD5.92M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GIB.A's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: GIB.A's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CGI Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CGI Inc.
  • Ticker: GIB.A
  • Exchange: TSX
  • Founded: 1976
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: CA$27.681b
  • Shares outstanding: 244.10m
  • Website: https://www.cgi.com

Number of Employees


Location

  • CGI Inc.
  • 1350 René-Lévesque Boulevard West
  • 15th Floor
  • Montreal
  • Quebec
  • H3G 1T4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.