TSX:GIB.A

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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. More Details


Snowflake Analysis

Good value with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

GIB.A

-3.2%

CA IT

-8.1%

CA Market


1 Year Return

-18.8%

GIB.A

-17.4%

CA IT

-60.7%

CA Market

Return vs Industry: GIB.A underperformed the Canadian IT industry which returned -17.4% over the past year.

Return vs Market: GIB.A exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

GIB.AIndustryMarket
7 Day-4.3%-3.2%-8.1%
30 Day-7.6%-7.4%-6.7%
90 Day-12.7%-12.3%-26.5%
1 Year-18.8%-18.8%-17.3%-17.4%-59.0%-60.7%
3 Year22.9%22.9%22.0%21.6%-60.3%-64.4%
5 Year57.8%57.8%54.8%54.2%-51.7%-59.4%

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?

20.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIB.A (CA$83.54) is trading below our estimate of fair value (CA$105.48)

Significantly Below Fair Value: GIB.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GIB.A is good value based on its PE Ratio (18.6x) compared to the CA IT industry average (22.9x).

PE vs Market: GIB.A is poor value based on its PE Ratio (18.6x) compared to the Canadian market (15.5x).


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 (3.1x) compared to the CA IT industry average (4x).


Next Steps

Future Growth

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

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIB.A's forecast earnings growth (10.5% per year) is above the savings rate (1.7%).

Earnings vs Market: GIB.A's earnings (10.5% per year) are forecast to grow slower than the Canadian market (60.1% 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 (7.3% 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 (14.1%).


Next Steps

Past Performance

How has CGI performed over the past 5 years?

5.1%

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 (9.8%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: GIB.A's earnings have grown by 5.1% 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 (-3.5%) over the past year, making it difficult to compare to the IT industry average (2.5%).


Return on Equity

High ROE: GIB.A's Return on Equity (17.1%) 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$4.7B) exceed its short term liabilities (CA$3.5B).

Long Term Liabilities: GIB.A's short term assets (CA$4.7B) do not cover its long term liabilities (CA$4.9B).


Debt to Equity History and Analysis

Debt Level: GIB.A's debt to equity ratio (54%) is considered high.

Reducing Debt: GIB.A's debt to equity ratio has increased from 36.3% to 54% over the past 5 years.

Debt Coverage: GIB.A's debt is well covered by operating cash flow (49.3%).

Interest Coverage: GIB.A's interest payments on its debt are well covered by EBIT (22.4x 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?

4.0yrs

Average management tenure


CEO

George Schindler (57 yo)

4yrs

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 ($USD7.75M) is about average for companies of similar size in the Canadian market ($USD6.95M).

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

NamePositionTenureCompensationOwnership
Serge Godin
Founder & Executive Chairman of the Board0.75yrCA$14.11m0.091%
CA$ 19.6m
Julie Godin
Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development0.75yrno data0.0027%
CA$ 575.7k
George Schindler
President4yrsCA$10.35m0.012%
CA$ 2.6m
Jean-Michel Baticle
President & COO0.75yrCA$2.36mno data
André Imbeau
Co-Founder & Director44.75yrsno data1.33%
CA$ 286.6m
François Boulanger
Executive VP & CFO6yrsCA$3.41m0.0075%
CA$ 1.6m
David Henderson
President of United States Operations2.92yrsCA$2.22m0.0039%
CA$ 834.5k
Anne-Marie Poupart
Senior VP & Chief Information Officer1.75yrsno datano data
Benoit Dubé
Executive VP of Legal & Economic Affairs and Corporate Secretary10.33yrsno data0.0032%
CA$ 692.2k
Chadi Habib
Senior Vice-President of Global Marketing & Communications0.083yrno datano data
Bernard Labelle
Executive VP & Chief Human Resources Officer7.5yrsno data0.0024%
CA$ 528.3k
Melvin Steinke
Executive Vice Presidentno datano datano data

4.0yrs

Average Tenure

63.5yo

Average Age

Experienced Management: GIB.A's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Serge Godin
Founder & Executive Chairman of the Board0.75yrCA$14.11m0.091%
CA$ 19.6m
Julie Godin
Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development0.75yrno data0.0027%
CA$ 575.7k
George Schindler
President4yrsCA$10.35m0.012%
CA$ 2.6m
André Imbeau
Co-Founder & Director44.75yrsno data1.33%
CA$ 286.6m
Michael Roach
Director14.33yrsCA$210.00k0.37%
CA$ 79.5m
Paule Doré
Independent Director25.75yrsCA$230.00k0.021%
CA$ 4.5m
Richard Evans
Independent Director11.08yrsCA$310.10k0.0039%
CA$ 834.5k
Timothy Hearn
Independent Lead Director1.75yrsCA$260.00k0.011%
CA$ 2.3m
Alain Bouchard
Independent Director7.42yrsCA$215.00k0.0097%
CA$ 2.1m
Joakim Westh
Independent Director7.42yrsCA$454.97k0.0034%
CA$ 731.0k
Michael Pedersen
Independent Director3.17yrsCA$215.00k0.0094%
CA$ 2.0m
Gilles Labbé
Independent Director10.75yrsCA$230.00k0.0058%
CA$ 1.3m

7.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: GIB.A's board of directors are considered experienced (7.4 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$21.563b
  • Shares outstanding: 258.11m
  • 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 Analysis2020/10/30 03:36
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.