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CAP

CapgeminiENXTPA:CAP Stock Report

Last Price

€203.20

Market Cap

€34.9b

7D

2.3%

1Y

64.7%

Updated

23 Jan, 2022

Data

Company Financials +
CAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends3/6

CAP Stock Overview

Capgemini SE provides consulting, digital transformation, technology, and engineering services in North America, France, the United Kingdom, Ireland, rest of Europe, the Asia-Pacific, and Latin America.

Capgemini Competitors

Alten

ENXTPA:ATE

€5.1b

Atos

ENXTPA:ATO

€3.8b

Sopra Steria Group

ENXTPA:SOP

€3.3b

Devoteam

ENXTPA:DVT

€1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Capgemini
Historical stock prices
Current Share Price€203.20
52 Week High€220.20
52 Week Low€116.10
Beta1.3
1 Month Change-4.38%
3 Month Change8.34%
1 Year Change64.67%
3 Year Change108.71%
5 Year Change168.85%
Change since IPO394.16%

Recent News & Updates

Jan 22
Is Now The Time To Put Capgemini (EPA:CAP) On Your Watchlist?

Is Now The Time To Put Capgemini (EPA:CAP) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Dec 14
Here's Why Capgemini (EPA:CAP) Can Manage Its Debt Responsibly

Here's Why Capgemini (EPA:CAP) Can Manage Its Debt Responsibly

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

Dec 02
Capgemini (EPA:CAP) Has More To Do To Multiply In Value Going Forward

Capgemini (EPA:CAP) Has More To Do To Multiply In Value Going Forward

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Nov 21
An Intrinsic Calculation For Capgemini SE (EPA:CAP) Suggests It's 37% Undervalued

An Intrinsic Calculation For Capgemini SE (EPA:CAP) Suggests It's 37% Undervalued

Does the November share price for Capgemini SE ( EPA:CAP ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

CAPFR ITFR Market
7D2.3%0.4%-0.5%
1Y64.7%11.8%22.6%

Return vs Industry: CAP exceeded the French IT industry which returned 11.8% over the past year.

Return vs Market: CAP exceeded the French Market which returned 22.6% over the past year.

Price Volatility

Is CAP's price volatile compared to industry and market?
CAP volatility
CAP Average Weekly Movement4.0%
IT Industry Average Movement4.4%
Market Average Movement4.6%
10% most volatile stocks in FR Market9.8%
10% least volatile stocks in FR Market2.5%

Stable Share Price: CAP is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CAP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1967289,501Aiman Ezzathttps://www.capgemini.com

Capgemini SE provides consulting, digital transformation, technology, and engineering services in North America, France, the United Kingdom, Ireland, rest of Europe, the Asia-Pacific, and Latin America. The company offers strategy and transformation services, including strategy, technology, data science, and creative design to support various clients within the digital economy. It also provides applications and technology services that helps the clients to develop, modernize, extend, and secure their IT and digital environment using the latest technologies, as well as offers local technology services model.

Capgemini Fundamentals Summary

How do Capgemini's earnings and revenue compare to its market cap?
CAP fundamental statistics
Market Cap€34.95b
Earnings (TTM)€1.09b
Revenue (TTM)€16.98b

32.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAP income statement (TTM)
Revenue€16.98b
Cost of Revenue€12.51b
Gross Profit€4.47b
Expenses€3.38b
Earnings€1.09b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 14, 2022

Earnings per share (EPS)6.33
Gross Margin26.30%
Net Profit Margin6.41%
Debt/Equity Ratio116.1%

How did CAP perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAP (€203.2) is trading below our estimate of fair value (€335.26)

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


Price To Earnings Ratio

PE vs Industry: CAP is poor value based on its PE Ratio (32.1x) compared to the French IT industry average (24.6x).

PE vs Market: CAP is poor value based on its PE Ratio (32.1x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CAP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CAP is overvalued based on its PB Ratio (5.2x) compared to the FR IT industry average (3x).


Future Growth

How is Capgemini forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAP's forecast earnings growth (16.6% per year) is above the savings rate (0.3%).

Earnings vs Market: CAP's earnings (16.6% per year) are forecast to grow faster than the French market (11.8% per year).

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

Revenue vs Market: CAP's revenue (8.2% per year) is forecast to grow faster than the French market (6.2% per year).

High Growth Revenue: CAP's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAP's Return on Equity is forecast to be high in 3 years time (21.6%)


Past Performance

How has Capgemini performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAP has high quality earnings.

Growing Profit Margin: CAP's current net profit margins (6.4%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CAP's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: CAP's earnings growth over the past year (39.8%) exceeds its 5-year average (-1.4% per year).

Earnings vs Industry: CAP earnings growth over the past year (39.8%) exceeded the IT industry 5.5%.


Return on Equity

High ROE: CAP's Return on Equity (16.3%) is considered low.


Financial Health

How is Capgemini's financial position?


Financial Position Analysis

Short Term Liabilities: CAP's short term assets (€8.0B) exceed its short term liabilities (€6.5B).

Long Term Liabilities: CAP's short term assets (€8.0B) do not cover its long term liabilities (€9.1B).


Debt to Equity History and Analysis

Debt Level: CAP's net debt to equity ratio (76.9%) is considered high.

Reducing Debt: CAP's debt to equity ratio has increased from 58.9% to 116.1% over the past 5 years.

Debt Coverage: CAP's debt is well covered by operating cash flow (26.6%).

Interest Coverage: CAP's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Dividend

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

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAP's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.34%).

High Dividend: CAP's dividend (0.96%) is low compared to the top 25% of dividend payers in the French market (3.91%).


Stability and Growth of Payments

Stable Dividend: CAP's dividend payments have been volatile in the past 10 years.

Growing Dividend: CAP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), CAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAP's dividends in 3 years are forecast to be well covered by earnings (21.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Aiman Ezzat (60 yo)

1.67yrs

Tenure

€4,164,186

Compensation

Mr. Aiman Ezzat serves Chairman of the Board at Altran Technologies S.A. since 2020. Mr. Ezzat serves as Independent Director at L'Air Liquide S.A. since May 4, 2021. He is CEO at Capgemini SE since May 20...


CEO Compensation Analysis

Compensation vs Market: Aiman's total compensation ($USD4.72M) is above average for companies of similar size in the French market ($USD3.22M).

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


Leadership Team

Experienced Management: CAP's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: CAP's board of directors are considered experienced (5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Capgemini SE's employee growth, exchange listings and data sources


Key Information

  • Name: Capgemini SE
  • Ticker: CAP
  • Exchange: ENXTPA
  • Founded: 1967
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: €34.949b
  • Shares outstanding: 171.99m
  • Website: https://www.capgemini.com

Number of Employees


Location

  • Capgemini SE
  • Place de l'Etoile
  • 11, rue de Tilsitt
  • Paris
  • Ile-de-France
  • 75017
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 18:47
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.