ENXTPA:CAP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with adequate balance sheet and pays a dividend.


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


Market Performance


7 Day Return

4.0%

CAP

2.5%

FR IT

2.9%

FR Market


1 Year Return

6.5%

CAP

4.3%

FR IT

10.2%

FR Market

Return vs Industry: CAP exceeded the French IT industry which returned 4.3% over the past year.

Return vs Market: CAP underperformed the French Market which returned 10.2% over the past year.


Share holder returns

CAPIndustryMarket
7 Day4.0%2.5%2.9%
30 Day1.9%0.6%-0.3%
90 Day-3.3%-6.0%0.1%
1 Year8.4%6.5%11.8%4.3%14.0%10.2%
3 Year42.6%35.7%42.4%26.7%44.3%30.4%
5 Year133.2%115.3%151.0%117.8%75.2%49.3%

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

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CAP (€110.1) is trading below our estimate of fair value (€113.83)

Significantly Undervalued: CAP is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: CAP is poor value based on its PE Ratio (22.8x) compared to the IT industry average (16.7x).

PE vs Market: CAP is poor value based on its PE Ratio (22.8x) compared to the French market (17.1x).


Price Based on Expected Growth

Low PEG Ratio: CAP is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: CAP is overvalued based on its PB Ratio (2.4x) compared to the FR IT industry average (2x).


Next Steps

Future Growth

How is Capgemini expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CAP's forecast earnings growth (11.5% per year) is above the savings rate (0.7%).

Earnings vs Market: CAP's earnings (11.5% per year) are forecast to grow faster than the French market (11.1% per year).

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

Revenue vs Market: CAP's revenue (5.2% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: CAP's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CAP's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Capgemini performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CAP's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: CAP's earnings growth over the past year (5.9%) exceeds its 5-year average (3% per year).

Earnings vs Industry: CAP earnings growth over the past year (5.9%) underperformed the IT industry 12.9%.


Return on Equity

High ROE: CAP's Return on Equity (10.7%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Capgemini's financial position?


Financial Position Analysis

Short Term Liabilities: CAP's short term assets (€6.1B) exceeds its short term liabilities (€4.4B)

Long Term Liabilities: CAP's short term assets (€6.1B) exceeds its long term liabilities (€5.5B)


Debt to Equity History and Analysis

Debt Level: CAP's debt to equity ratio (46.9%) is considered high

Reducing Debt: CAP's debt to equity ratio has increased from 22.9% to 46.9% over the past 5 years.

Debt Coverage: CAP's debt is well covered by operating cash flow (46.4%).

Interest Coverage: CAP's interest payments on its debt are well covered by EBIT (98.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CAP's debt is covered by short term assets (assets are 1.734910x debt).


Next Steps

Dividend

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

1.92%

Expected Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.6%markettop25%4.6%industryaverage1.7%forecastin3Years1.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CAP's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: CAP's dividend (1.54%) is low compared to the top 25% of dividend payers in the French market (4.65%).

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 (35.2%), 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 (30.8% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Paul Hermelin (67yo)

7.4yrs

Tenure

€5,038,180

Compensation

Mr. Paul Hermelin has been the Chairman of the Board and Chief Executive Officer at Cap Gemini S.A. since May 24, 2012 and also serves as its Chairman of the Executive Board. Mr. Hermelin serves as the Chi ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD5.57M) is about average for companies of similar size in the French market ($USD3.51M).

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


Management Age and Tenure

2.2yrs

Average Tenure

58yo

Average Age

Experienced Management: CAP's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CAP's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hubert Paul Giraud (61yo)

    Head of Human Resources & Member of Executive Board

    • Tenure: 0yrs
  • Paul Hermelin (67yo)

    Chairman

    • Tenure: 7.4yrs
    • Compensation: €5.04m
  • Patrick Nicolet (60yo)

    Group CTO & Member of Group Executive Board

    • Tenure: 0yrs
  • Aiman Ezzat (58yo)

    COO & Member of Group Executive Board

    • Tenure: 0yrs
  • Olivier Sevillia

    Head of Europe & Member of the Executive Board

    • Tenure: 0yrs
  • Cyril Garcia

    CEO of Capgemini Invent & Member of Group Executive Board

    • Tenure: 0.08yrs
  • Lucia Sinapi-Thomas (55yo)

    Head of Business Services - Capgemini Prosodie & Director

    • Tenure: 7.4yrs
    • Compensation: €61.00k
  • Carole Ferrand (49yo)

    CFO & Member of Group Executive Board

    • Tenure: 1.3yrs
    • Compensation: €27.25k
  • Jean-Philippe Bol

    Head of Americas & Asia Pacific and Member of the Executive Board

    • Tenure: 0yrs
  • Thierry Delaporte (52yo)

    COO & Member of Group Executive Board

    • Tenure: 0yrs

Board Members

  • Daniel Bernard (73yo)

    Vice-Chairman

    • Tenure: 2.4yrs
    • Compensation: €136.00k
  • Paul Hermelin (67yo)

    Chairman

    • Tenure: 7.4yrs
    • Compensation: €5.04m
  • Pierre Pringuet (69yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: €106.00k
  • Laurence Dors (63yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: €113.50k
  • Xavier Musca (59yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €82.00k
  • Patrick Pouyanné (56yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €63.50k
  • Anne Bouverot (53yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: €66.00k
  • Lucia Sinapi-Thomas (55yo)

    Head of Business Services - Capgemini Prosodie & Director

    • Tenure: 7.4yrs
    • Compensation: €61.00k
  • Kevin Masters (63yo)

    Director Representing Employees

    • Tenure: 3.1yrs
    • Compensation: €61.00k
  • Robert Fretel (62yo)

    Director Representing Employees

    • Tenure: 3.1yrs
    • Compensation: €66.00k

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: €18.188b
  • Shares outstanding: 165.19m
  • 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
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 rea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:51
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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