TSX:GIB.A

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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


Market Performance


7 Day Return

-1.0%

GIB.A

-1.8%

CA IT

0.2%

CA Market


1 Year Return

30.1%

GIB.A

23.7%

CA IT

3.5%

CA Market

Return vs Industry: GIB.A matched the Canadian IT industry which returned 23.7% over the past year.

Return vs Market: GIB.A exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

GIB.AIndustryMarket
7 Day-1.0%-1.8%0.2%
30 Day-1.0%-1.7%-3.3%
90 Day-2.7%-3.0%-1.9%
1 Year30.1%30.1%23.8%23.7%7.3%3.5%
3 Year61.2%61.2%58.3%58.1%14.7%4.4%
5 Year167.1%167.1%159.6%158.7%26.2%7.7%

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

Valuation

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

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIB.A (CA$101.73) is trading below our estimate of fair value (CA$108.12)

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 good value based on its PE Ratio (22.7x) compared to the IT industry average (34.5x).

PE vs Market: GIB.A is poor value based on its PE Ratio (22.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: GIB.A is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: GIB.A is overvalued based on its PB Ratio (4.1x) compared to the CA IT industry average (2.6x).


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIB.A's forecast earnings growth (8.1% per year) is above the savings rate (1.9%).

Earnings vs Market: GIB.A's earnings (8.1% per year) are forecast to grow slower than the Canadian market (13% per year).

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

Revenue vs Market: GIB.A's revenue (4.3% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: GIB.A's revenue (4.3% 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 (15.9%).


Next Steps

Past Performance

How has CGI performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GIB.A's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: GIB.A's earnings growth over the past year (16.7%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: GIB.A earnings growth over the past year (16.7%) exceeded the IT industry 13.4%.


Return on Equity

High ROE: GIB.A's Return on Equity (18.5%) is considered low.


Return on Assets

ROA vs Industry: GIB.A has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: GIB.A has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CGI's financial position?


Financial Position Analysis

Short Term Liabilities: GIB.A's short term assets (CA$3.4B) exceeds its short term liabilities (CA$3.1B)

Long Term Liabilities: GIB.A's short term assets (3.4B) exceeds its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: GIB.A's debt to equity ratio (38.4%) is considered satisfactory

Reducing Debt: GIB.A's debt to equity ratio has reduced from 53.5% to 38.4% over the past 5 years.

Debt Coverage: GIB.A's debt is well covered by operating cash flow (61.2%).

Interest Coverage: GIB.A's interest payments on its debt are well covered by EBIT (30.2x coverage).


Balance Sheet

Inventory Level: GIB.A has a low level of unsold assets or inventory.

Debt Coverage by Assets: GIB.A's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

4.8yrs

Average management tenure


CEO

George Schindler (56yo)

3yrs

Tenure

CA$8,568,137

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 ($USD6.55M) is about average for companies of similar size in the Canadian market ($USD7.07M).

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


Management Age and Tenure

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Management: GIB.A's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: GIB.A's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: GIB.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$295,59009 Aug 19
Alison Reed
EntityIndividual
Shares3,000
Max PriceCA$98.53
SellCA$6,652,99127 Feb 19
Michael Roach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares74,800
Max PriceCA$89.30
SellCA$4,029,35026 Feb 19
Michael Roach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares45,600
Max PriceCA$88.50
SellCA$8,798,03825 Feb 19
Michael Roach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares99,600
Max PriceCA$88.50
SellCA$1,730,99122 Feb 19
Paule Doré
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares19,660
Max PriceCA$88.17
BuyCA$999,74314 Feb 19
Michael Pedersen
EntityIndividual
Shares11,350
Max PriceCA$88.18
SellCA$414,80023 Nov 18
Gilles Labbé
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$82.96
SellCA$414,80021 Nov 18
Gilles Labbé
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$82.96
SellCA$8,207,89019 Nov 18
Fondation Jeunesse-Vie
EntityCompany
Shares100,000
Max PriceCA$82.08

Ownership Breakdown


Management Team

  • Serge Godin (70yo)

    Founder & Executive Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: CA$13.88m
  • André Imbeau (69yo)

    Co-Founder & Director

    • Tenure: 43.8yrs
  • François Boulanger

    Executive VP & CFO

    • Tenure: 5yrs
    • Compensation: CA$2.93m
  • Lorne Gorber

    Executive Vice-President of Investor & Public Relations

    • Tenure: 4.8yrs
  • George Schindler (56yo)

    President

    • Tenure: 3yrs
    • Compensation: CA$8.57m
  • Benoit Dubé

    Executive VP of Legal & Economic Affairs and Corporate Secretary

    • Tenure: 9.3yrs
  • Julie Godin (44yo)

    Vice-Chair of the Board

    • Tenure: 3.2yrs
  • Jean-Michel Baticle

    President of Western & Southern Europe Operations

    • Tenure: 0yrs
    • Compensation: CA$2.25m
  • Dave Henderson

    President of United States Operations

    • Tenure: 1.9yrs
    • Compensation: CA$2.20m
  • Anne-Marie Poupart

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Michael Roach (67yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: CA$215.00k
  • Serge Godin (70yo)

    Founder & Executive Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: CA$13.88m
  • André Imbeau (69yo)

    Co-Founder & Director

    • Tenure: 43.8yrs
  • Paule Doré (68yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: CA$235.00k
  • Dick Evans (72yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: CA$300.96k
  • Alain Bouchard (70yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$235.00k
  • Joakim Westh (58yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$371.01k
  • George Schindler (56yo)

    President

    • Tenure: 3yrs
    • Compensation: CA$8.57m
  • Gilles Labbé (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: CA$235.00k
  • Julie Godin (44yo)

    Vice-Chair of the Board

    • Tenure: 3.2yrs

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$27.321b
  • Shares outstanding: 268.57m
  • Website: https://www.cgi.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIBNYSE (New York Stock Exchange)YesClass A SharesUSUSDAug 1988
GIB.ATSX (The Toronto Stock Exchange)YesClass A SharesCACADAug 1988
CJ5ADB (Deutsche Boerse AG)YesClass A SharesDEEURAug 1988
0A18LSE (London Stock Exchange)YesClass A SharesGBCADAug 1988

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:39
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.