ENXTPA:CAP

Stock Analysis Report

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Executive Summary

Capgemini SE provides consulting, technology, and digital transformation services.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Capgemini's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

CAP

0.7%

FR IT

2.3%

FR Market


1 Year Return

-12.3%

CAP

-2.3%

FR IT

-8.7%

FR Market

Return vs Industry: CAP underperformed the French IT industry which returned -2.3% over the past year.

Return vs Market: CAP underperformed the French Market which returned -8.7% over the past year.


Shareholder returns

CAPIndustryMarket
7 Day-2.4%0.7%2.3%
30 Day3.2%6.5%-0.2%
90 Day44.8%42.3%21.3%
1 Year-11.0%-12.3%-1.7%-2.3%-7.1%-8.7%
3 Year16.6%11.2%21.2%8.7%11.2%2.1%
5 Year28.9%19.0%79.7%58.2%28.6%11.4%

Price Volatility Vs. Market

How volatile is Capgemini's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAP (€100.85) is trading below our estimate of fair value (€150.05)

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 (19.6x) compared to the IT industry average (16.6x).

PE vs Market: CAP is poor value based on its PE Ratio (19.6x) compared to the French market (15x).


Price to Earnings Growth Ratio

PEG Ratio: CAP is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CAP is overvalued based on its PB Ratio (2x) compared to the FR IT industry average (1.7x).


Next Steps

Future Growth

How is Capgemini forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAP's forecast earnings growth (12.9% per year) is above the savings rate (0.6%).

Earnings vs Market: CAP's earnings (12.9% per year) are forecast to grow slower than the French market (13.3% per year).

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

Revenue vs Market: CAP's revenue (6.5% per year) is forecast to grow faster than the French market (3.9% per year).

High Growth Revenue: CAP's revenue (6.5% 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 low in 3 years time (14.3%).


Next Steps

Past Performance

How has Capgemini performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAP has high quality earnings.

Growing Profit Margin: CAP's current net profit margins (6.1%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: CAP's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: CAP's earnings growth over the past year (17.3%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: CAP earnings growth over the past year (17.3%) exceeded the IT industry 4%.


Return on Equity

High ROE: CAP's Return on Equity (10.1%) is considered low.


Next Steps

Financial Health

How is Capgemini's financial position?


Financial Position Analysis

Short Term Liabilities: CAP's short term assets (€6.6B) exceed its short term liabilities (€5.1B).

Long Term Liabilities: CAP's short term assets (€6.6B) exceed its long term liabilities (€4.6B).


Debt to Equity History and Analysis

Debt Level: CAP's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: CAP's debt to equity ratio has increased from 18.6% to 39% over the past 5 years.

Debt Coverage: CAP's debt is well covered by operating cash flow (54.7%).

Interest Coverage: CAP's interest payments on its debt are well covered by EBIT (512.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAP's dividend (1.88%) is higher than the bottom 25% of dividend payers in the French market (1.67%).

High Dividend: CAP's dividend (1.88%) is low compared to the top 25% of dividend payers in the French market (4.84%).


Stability and Growth of Payments

Stable Dividend: CAP's dividends per share have been stable 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 (36.9%), 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 (27.7% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Aiman Ezzat (59yo)

0.17

Tenure

€3,376,054

Compensation

Mr. Aiman Ezzat serves Chairman of the Board at Altran Technologies S.A. since 2020. He is CEO at Capgemini SE since May 20, 2020 and serves as its Member of Management Board. He served as Chief Operating  ...


CEO Compensation Analysis

Compensation vs Market: Aiman's total compensation ($USD3.80M) is about average for companies of similar size in the French market ($USD3.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Hermelin
Chairman of the Board & Member of the Executive Board8.17yrs€4.84m0.18% 31.2m
Aiman Ezzat
CEO, Member of Group Executive Board & Director0.17yr€3.38m0.029% 5.0m
Lucia Sinapi-Thomas
Head of Business Services - Capgemini Prosodie & Director8.17yrs€70.00k0.018% 3.1m
Carole Ferrand
CFO & Member of Group Executive Board2.08yrs€27.25kno data
Patrick Nicolet
Group CTO & Member of Group Executive Boardno datano datano data
Olivier Sevillia
Head of Europe & Member of the Executive Boardno datano datano data
Cyril Garcia
CEO of Capgemini Invent & Member of Group Executive Board0.83yrno datano data
Jean-Philippe Bol
Head of Americas & Asia Pacific and Member of the Executive Boardno datano datano data
Fernando Alvarez
Head of Strategy & Development0.50yrno datano data
Anirban Bose
Head of Financial Services Strategic & Member of the Group Executive Board3.42yrsno datano data

1.5yrs

Average Tenure

59yo

Average Age

Experienced Management: CAP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Hermelin
Chairman of the Board & Member of the Executive Board8.17yrs€4.84m0.18% 31.2m
Aiman Ezzat
CEO, Member of Group Executive Board & Director0.17yr€3.38m0.029% 5.0m
Lucia Sinapi-Thomas
Head of Business Services - Capgemini Prosodie & Director8.17yrs€70.00k0.018% 3.1m
Daniel Bernard
Vice-Chairman3.17yrs€137.50k0.00059% 100.7k
Pierre Pringuet
Lead Independent Director3.17yrs€115.00k0.0010% 170.6k
Laurence Dors
Independent Director10.17yrs€112.50k0.00059% 100.7k
Xavier Musca
Independent Director6.17yrs€90.00k0.00059% 100.7k
Patrick Pouyanné
Independent Director3.17yrs€63.50k0.00059% 100.7k
Anne Bouverot
Independent Director6.75yrs€71.00k0.00059% 100.7k
Kevin Masters
Director Representing Employees3.83yrs€70.00kno data

5.0yrs

Average Tenure

62yo

Average Age

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 2.4%.


Top Shareholders

Company Information

Capgemini SE's company bio, 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
  • Market Cap: €17.064b
  • Shares outstanding: 169.20m
  • Website: https://www.capgemini.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAPM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
CAPENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
0HAZLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
CGMDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
CAPPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
CAPP-UETLX (Eurotlx)YesCommon SharesITEURJan 1992
CAPSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
CAPGWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
CAPG NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
CGEM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2003

Biography

Capgemini SE provides consulting, technology, and digital transformation services. It addresses clients’ opportunities in the world of cloud, digital, and platforms, as well as enables organizations to realize business ambitions through an array of services from strategy to operations. 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. In addition, the company provides digital engineering and manufacturing services, such as infrastructure services that regroup the installation and maintenance of client IT infrastructures in data centers or in the cloud; and business process outsourcing services. It serves various industries, including consumer goods and retail; energy and utilities; financial services; manufacturing; public sector; services; telecommunications, media, and technology; and services. The company has operations in North America, France, the United Kingdom, Ireland, rest of Europe, the Asia-Pacific, and Latin America. The company was founded in 1967 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 20:46
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.