| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | CA$112.61 |
| 52 Week High | CA$80.29 |
| 52 Week Low | CA$116.88 |
| Beta | 0.99 |
| 1 Month Change | 0.40% |
| 3 Month Change | 1.12% |
| 1 Year Change | 25.99% |
| 3 Year Change | 31.62% |
| 5 Year Change | 77.59% |
| Change since IPO | 89,988.00% |
Recent News & Updates
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...
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...
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.A | CA IT | CA Market | |
|---|---|---|---|
| 7D | -2.2% | 1.4% | -0.2% |
| 1Y | 26.0% | 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
| GIB.A volatility | |
|---|---|
| GIB.A Beta | 0.99 |
| Industry Beta | 1.23 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1976 | 78,000 | George Schindler | https://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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/16 22:49 |
| End of Day Share Price | 2021/09/16 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/09/30 |
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.