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GIB.

CGI TSX:GIB.A Stock Report

Last Price

CA$110.90

Market Cap

CA$25.7b

7D

0.6%

1Y

-0.5%

Updated

17 Aug, 2022

Data

Company Financials +
GIB.A fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

GIB.A Stock 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$110.90
52 Week HighCA$116.88
52 Week LowCA$95.45
Beta0.92
1 Month Change3.07%
3 Month Change4.72%
1 Year Change-0.49%
3 Year Change6.59%
5 Year Change77.19%
Change since IPO88,620.00%

Recent News & Updates

Jul 20
We Think CGI (TSE:GIB.A) Can Stay On Top Of Its Debt

We Think CGI (TSE:GIB.A) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 09
CGI Inc. (TSE:GIB.A) Shares Could Be 20% Below Their Intrinsic Value Estimate

CGI Inc. (TSE:GIB.A) Shares Could Be 20% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of CGI Inc. ( TSE:GIB.A ) by estimating the...

Shareholder Returns

GIB.ACA ITCA Market
7D0.6%-0.2%1.5%
1Y-0.5%-28.8%2.1%

Return vs Industry: GIB.A exceeded the Canadian IT industry which returned -27.7% over the past year.

Return vs Market: GIB.A underperformed the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is GIB.A's price volatile compared to industry and market?
GIB.A volatility
GIB.A Average Weekly Movement2.9%
IT Industry Average Movement12.3%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.2%

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

Volatility Over Time: GIB.A's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197688,500George 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, 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.

CGI Fundamentals Summary

How do CGI's earnings and revenue compare to its market cap?
GIB.A fundamental statistics
Market CapCA$25.68b
Earnings (TTM)CA$1.45b
Revenue (TTM)CA$12.63b

17.7x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GIB.A income statement (TTM)
RevenueCA$12.63b
Cost of RevenueCA$8.76b
Gross ProfitCA$3.87b
Other ExpensesCA$2.42b
EarningsCA$1.45b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 09, 2022

Earnings per share (EPS)6.26
Gross Margin30.64%
Net Profit Margin11.48%
Debt/Equity Ratio45.4%

How did GIB.A perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GIB.A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GIB.A?

Other financial metrics that can be useful for relative valuation.

GIB.A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA13x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does GIB.A's PE Ratio compare to its peers?

GIB.A PE Ratio vs Peers
The above table shows the PE ratio for GIB.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average70.1x
CTS Converge Technology Solutions
69.8x45.8%CA$1.5b
NVEI Nuvei
65.1x44.1%CA$6.3b
CSU Constellation Software
78.6x27.1%CA$46.1b
DSG Descartes Systems Group
66.7x18.1%CA$7.8b
GIB.A CGI
17.7x5.9%CA$25.7b

Price-To-Earnings vs Peers: GIB.A is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (70.1x).


Price to Earnings Ratio vs Industry

How does GIB.A's PE Ratio compare vs other companies in the North American IT Industry?

Price-To-Earnings vs Industry: GIB.A is good value based on its Price-To-Earnings Ratio (17.7x) compared to the Canadian IT industry average (49.5x)


Price to Earnings Ratio vs Fair Ratio

What is GIB.A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GIB.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio27.5x

Price-To-Earnings vs Fair Ratio: GIB.A is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).


Share Price vs Fair Value

What is the Fair Price of GIB.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GIB.A (CA$110.9) is trading below our estimate of fair value (CA$115.26)

Significantly Below Fair Value: GIB.A is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIB.A's forecast earnings growth (5.9% per year) is above the savings rate (1.6%).

Earnings vs Market: GIB.A's earnings (5.9% per year) are forecast to grow slower than the Canadian market (7.8% per year).

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

Revenue vs Market: GIB.A's revenue (4.2% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: GIB.A's revenue (4.2% 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 (15.9%).


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Past Performance

How has CGI performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.7%

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 (11.5%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: GIB.A's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: GIB.A's earnings growth over the past year (13.7%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: GIB.A earnings growth over the past year (13.7%) underperformed the IT industry 20.5%.


Return on Equity

High ROE: GIB.A's Return on Equity (20.8%) is considered high.


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Financial Health

How is CGI's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GIB.A's short term assets (CA$4.3B) exceed its short term liabilities (CA$3.8B).

Long Term Liabilities: GIB.A's short term assets (CA$4.3B) exceed its long term liabilities (CA$4.1B).


Debt to Equity History and Analysis

Debt Level: GIB.A's net debt to equity ratio (34.2%) is considered satisfactory.

Reducing Debt: GIB.A's debt to equity ratio has increased from 26.9% to 45.4% over the past 5 years.

Debt Coverage: GIB.A's debt is well covered by operating cash flow (60%).

Interest Coverage: GIB.A's interest payments on its debt are well covered by EBIT (23x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GIB.A has not reported any payouts.


Discover strong dividend paying companies

Management

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

6.8yrs

Average management tenure


CEO

George Schindler (59 yo)

5.83yrs

Tenure

CA$12,844,215

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 ($USD9.94M) is above average for companies of similar size in the Canadian market ($USD7.35M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: GIB.A's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: GIB.A's board of directors are considered experienced (9.3 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
  • Implied Market Cap: CA$25.685b
  • Shares outstanding: 231.60m
  • Website: https://www.cgi.com

Number of Employees


Location

  • CGI Inc.
  • 1350 RenE-LEvesque 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 Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.