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

-0.9%

TSX:GIB.A

-0.9%

CA IT

1.6%

CA Market


1 Year Return

20.6%

TSX:GIB.A

17.3%

CA IT

-0.5%

CA Market

GIB.A outperformed the IT industry which returned 17.4% over the past year.

GIB.A outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

GIB.AIndustryMarket
7 Day-0.9%-0.9%1.6%
30 Day-0.8%-0.9%3.9%
90 Day-0.3%-0.5%0.8%
1 Year20.6%20.6%17.4%17.3%3.0%-0.5%
3 Year65.5%65.5%63.0%62.8%19.5%8.8%
5 Year171.0%171.0%166.2%165.2%21.0%3.6%

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 based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CGI's share price is below the future cash flow value, but not at a moderate discount (< 20%).

CGI's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CGI is good value based on earnings compared to the North America IT industry average.

CGI is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

CGI is poor value based on expected growth next year.


Price Based on Value of Assets

CGI is overvalued based on assets compared to the CA IT industry average.


Next Steps

Future Growth

How is CGI expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CGI's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

CGI's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

CGI's revenue growth is positive but not above the Canada market average.

CGI's earnings growth is positive but not above the Canada market average.

CGI's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

CGI is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

CGI's year on year earnings growth rate has been positive over the past 5 years.

CGI's 1-year earnings growth exceeds its 5-year average (16.7% vs 6.4%)

CGI's earnings growth has exceeded the North America IT industry average in the past year (16.7% vs 14.1%).


Return on Equity

CGI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CGI used its assets more efficiently than the North America IT industry average last year based on Return on Assets.


Return on Capital Employed

CGI has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CGI's financial position?


Financial Position Analysis

CGI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CGI's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CGI's level of debt (38.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (53.5% vs 38.4% today).

Debt is well covered by operating cash flow (61.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.2x coverage).


Balance Sheet

Low level of unsold assets.

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 and Payments Analysis

Unable to evaluate CGI's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate CGI's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as CGI has not reported any payouts.

Unable to verify if CGI's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as CGI has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of CGI's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

George Schindler (56yo)

2.9yrs

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

George's remuneration is about average for companies of similar size in Canada.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

62.5yo

Average Age

The tenure for the CGI management team is about average.


Board Age and Tenure

9.8yrs

Average Tenure

67.5yo

Average Age

The tenure for the CGI board of directors is about average.


Insider Trading

More shares have been bought than sold by CGI individual insiders 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: 13.7yrs
    • Compensation: CA$13.88m
  • André Imbeau (69yo)

    Co-Founder & Director

    • Tenure: 43.7yrs
  • François Boulanger

    Executive VP & CFO

    • Tenure: 4.9yrs
    • Compensation: CA$2.93m
  • Lorne Gorber

    Executive Vice-President of Investor & Public Relations

    • Tenure: 4.7yrs
  • George Schindler (56yo)

    President

    • Tenure: 2.9yrs
    • 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: 3.1yrs
  • Jean-Michel Baticle

    President of Western & Southern Europe Operations

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

    President of United States Operations

    • Tenure: 1.8yrs
    • Compensation: CA$2.20m
  • Anne-Marie Poupart

    Senior VP & Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • Michael Roach (67yo)

    Director

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

    Founder & Executive Chairman of the Board

    • Tenure: 13.7yrs
    • Compensation: CA$13.88m
  • André Imbeau (69yo)

    Co-Founder & Director

    • Tenure: 43.7yrs
  • Paule Doré (68yo)

    Independent Director

    • Tenure: 24.7yrs
    • Compensation: CA$235.00k
  • Dick Evans (72yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: CA$300.96k
  • Alain Bouchard (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$235.00k
  • Joakim Westh (58yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$371.01k
  • George Schindler (56yo)

    President

    • Tenure: 2.9yrs
    • Compensation: CA$8.57m
  • Gilles Labbé (63yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: CA$235.00k
  • Julie Godin (44yo)

    Vice-Chair of the Board

    • Tenure: 3.1yrs

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$27.517b
  • 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 Analysis2019/09/16 23:35
End of Day Share Price2019/09/16 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.