Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
Similar Companies
Share Price & News
How has CGI's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GIB.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GIB.A's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.3%
GIB.A
2.1%
CA IT
0.7%
CA Market
1 Year Return
-13.9%
GIB.A
-11.6%
CA IT
-2.0%
CA Market
Return vs Industry: GIB.A underperformed the Canadian IT industry which returned -11.6% over the past year.
Return vs Market: GIB.A underperformed the Canadian Market which returned -1.8% over the past year.
Shareholder returns
| GIB.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 2.1% | 0.7% |
| 30 Day | 7.1% | 6.3% | 5.3% |
| 90 Day | 3.2% | 2.2% | 4.0% |
| 1 Year | -13.9%-13.9% | -11.6%-11.6% | 1.6%-2.0% |
| 3 Year | 35.8%35.8% | 29.8%29.5% | 10.2%-0.5% |
| 5 Year | 60.8%60.8% | 60.0%59.4% | 44.5%22.3% |
Long-Term Price Volatility Vs. Market
How volatile is CGI's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does CGI's (TSE:GIB.A) Statutory Profit Adequately Reflect Its Underlying Profit?3 weeks ago | Simply Wall St
At CA$82.67, Is It Time To Put CGI Inc. (TSE:GIB.A) On Your Watch List?1 month ago | Simply Wall St
These 4 Measures Indicate That CGI (TSE:GIB.A) Is Using Debt Reasonably WellValuation
Is CGI undervalued compared to its fair value and its price relative to the market?
16.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GIB.A (CA$93.19) is trading below our estimate of fair value (CA$111.26)
Significantly Below Fair Value: GIB.A is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GIB.A is poor value based on its PE Ratio (21.8x) compared to the CA IT industry average (18.4x).
PE vs Market: GIB.A is poor value based on its PE Ratio (21.8x) compared to the Canadian market (15x).
Price to Earnings Growth Ratio
PEG Ratio: GIB.A is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: GIB.A is good value based on its PB Ratio (3.3x) compared to the CA IT industry average (4.7x).
Next Steps
Future Growth
How is CGI forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
12.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GIB.A's forecast earnings growth (12.1% per year) is above the savings rate (1.7%).
Earnings vs Market: GIB.A's earnings (12.1% per year) are forecast to grow slower than the Canadian market (26.1% per year).
High Growth Earnings: GIB.A's earnings are forecast to grow, but not significantly.
Revenue vs Market: GIB.A's revenue (2.9% per year) is forecast to grow slower than the Canadian market (6.1% per year).
High Growth Revenue: GIB.A's revenue (2.9% 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 (14.9%).
Next Steps
Past Performance
How has CGI performed over the past 5 years?
4.3%
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 (9.2%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: GIB.A's earnings have grown by 4.3% per year over the past 5 years.
Accelerating Growth: GIB.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GIB.A had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the IT industry average (2.3%).
Return on Equity
High ROE: GIB.A's Return on Equity (15.4%) is considered low.
Next Steps
Financial Health
How is CGI's financial position?
Financial Position Analysis
Short Term Liabilities: GIB.A's short term assets (CA$4.9B) exceed its short term liabilities (CA$3.7B).
Long Term Liabilities: GIB.A's short term assets (CA$4.9B) exceed its long term liabilities (CA$4.6B).
Debt to Equity History and Analysis
Debt Level: GIB.A's debt to equity ratio (50.2%) is considered high.
Reducing Debt: GIB.A's debt to equity ratio has increased from 35% to 50.2% over the past 5 years.
Debt Coverage: GIB.A's debt is well covered by operating cash flow (53.2%).
Interest Coverage: GIB.A's interest payments on its debt are well covered by EBIT (18.1x coverage).
Balance Sheet
Next Steps
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?
4.1yrs
Average management tenure
CEO
George Schindler (57 yo)
4.08yrs
Tenure
CA$10,352,766
Compensation
Mr. George D. Schindler has been the Chief Executive Officer, President and Director at CGI Group Inc. since October 1, 2016. Mr. Schindler served as the Chief Operating Officer at CGI Group Inc. since May...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD7.92M) is about average for companies of similar size in the Canadian market ($USD7.00M).
Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman of the Board | 0.83yr | CA$14.11m | 0.091% CA$ 21.9m | |
| Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development | 0.83yr | no data | 0.0027% CA$ 645.7k | |
| President | 4.08yrs | CA$10.35m | 0.012% CA$ 2.9m | |
| President & COO | 0.83yr | CA$2.36m | no data | |
| Co-Founder & Director | 44.83yrs | no data | 1.33% CA$ 320.7m | |
| Executive VP & CFO | 6.08yrs | CA$3.41m | 0.0075% CA$ 1.8m | |
| President of United States Operations | 3yrs | CA$2.22m | 0.0039% CA$ 932.4k | |
| Senior VP & Chief Information Officer | 1.83yrs | no data | no data | |
| Executive VP of Legal & Economic Affairs and Corporate Secretary | 10.42yrs | no data | 0.0032% CA$ 773.4k | |
| Senior Vice-President of Global Marketing & Communications | 0.17yr | no data | no data | |
| Executive VP & Chief Human Resources Officer | 7.58yrs | no data | 0.0024% CA$ 590.3k | |
| Executive Vice President | no data | no data | no data |
4.1yrs
Average Tenure
63.5yo
Average Age
Experienced Management: GIB.A's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman of the Board | 0.83yr | CA$14.11m | 0.091% CA$ 21.9m | |
| Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development | 0.83yr | no data | 0.0027% CA$ 645.7k | |
| President | 4.08yrs | CA$10.35m | 0.012% CA$ 2.9m | |
| Co-Founder & Director | 44.83yrs | no data | 1.33% CA$ 320.7m | |
| Director | 14.42yrs | CA$210.00k | 0.37% CA$ 89.0m | |
| Independent Director | 25.83yrs | CA$230.00k | 0.021% CA$ 5.1m | |
| Independent Director | 11.17yrs | CA$310.10k | 0.0039% CA$ 934.8k | |
| Independent Lead Director | 1.83yrs | CA$260.00k | 0.011% CA$ 2.6m | |
| Independent Director | 7.5yrs | CA$215.00k | 0.0097% CA$ 2.3m | |
| Independent Director | 7.5yrs | CA$454.97k | 0.0034% CA$ 819.2k | |
| Independent Director | 3.25yrs | CA$215.00k | 0.0095% CA$ 2.3m | |
| Independent Director | 10.83yrs | CA$230.00k | 0.0058% CA$ 1.4m |
7.5yrs
Average Tenure
68.5yo
Average Age
Experienced Board: GIB.A's board of directors are considered experienced (7.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GIB.A insiders have only sold shares 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 company bio, 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$24.093b
- Shares outstanding: 257.68m
- Website: https://www.cgi.com
Number of Employees
Location
- CGI Inc.
- 1350 René-Lévesque Boulevard West
- 15th Floor
- Montreal
- Quebec
- H3G 1T4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GIB | NYSE (New York Stock Exchange) | Yes | Class A Shares | US | USD | Aug 1988 |
| GIB.A | TSX (The Toronto Stock Exchange) | Yes | Class A Shares | CA | CAD | Aug 1988 |
| CJ5A | DB (Deutsche Boerse AG) | Yes | Class A Shares | DE | EUR | Aug 1988 |
| 0A18 | LSE (London Stock Exchange) | Yes | Class A Shares | GB | CAD | Aug 1988 |
Biography
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, Pola...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 00:04 |
| End of Day Share Price | 2020/11/23 00:00 |
| Earnings | 2020/09/30 |
| 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.