ENXTPA:CAP

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

-4.1%

CAP

-0.8%

FR IT

-0.5%

FR Market


1 Year Return

5.2%

CAP

17.5%

FR IT

15.2%

FR Market

Return vs Industry: CAP underperformed the French IT industry which returned 17.5% over the past year.

Return vs Market: CAP underperformed the French Market which returned 15.2% over the past year.


Shareholder returns

CAPIndustryMarket
7 Day-4.1%-0.8%-0.5%
30 Day-7.2%0.03%0.6%
90 Day0.4%10.2%2.8%
1 Year7.1%5.2%25.2%17.5%19.2%15.2%
3 Year43.5%36.6%49.7%32.7%43.8%30.2%
5 Year64.9%52.3%124.0%94.8%52.3%30.8%

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?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAP (€113.35) is trading below our estimate of fair value (€179.88)

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 (22x) compared to the IT industry average (18.9x).

PE vs Market: CAP is poor value based on its PE Ratio (22x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CAP is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CAP is overvalued based on its PB Ratio (2.5x) compared to the FR IT industry average (2.2x).


Next Steps

Future Growth

How is Capgemini forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAP's forecast earnings growth (15.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: CAP's earnings (15.8% per year) are forecast to grow faster than the French market (12.9% per year).

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

Revenue vs Market: CAP's revenue (13.6% per year) is forecast to grow faster than the French market (4.6% per year).

High Growth Revenue: CAP's revenue (13.6% 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 12.9%.


Return on Equity

High ROE: CAP's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capgemini's financial position?


Financial Position Analysis

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

Long Term Liabilities: CAP's short term assets (€6.1B) exceed 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 18% to 46.9% over the past 5 years.

Debt Coverage: CAP's debt is well covered by operating cash flow (51.3%).

Interest Coverage: CAP's interest payments on its debt are well covered by EBIT (19.2x 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 1.7x debt).


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%4.6%industryaverage1.8%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: CAP's dividend (1.68%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: CAP's dividend (1.68%) is low compared to the top 25% of dividend payers in the French market (4.58%).


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 (26.3% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Paul Hermelin (67yo)

7.8yrs

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 ($USD5.47M) is above average for companies of similar size in the French market ($USD3.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Hermelin
Chairman7.8yrs€5.04m0.18% 34.1m
Carole Ferrand
CFO & Member of Group Executive Board1.7yrs€27.25kno data
Lucia Sinapi-Thomas
Head of Business Services - Capgemini Prosodie & Director7.8yrs€61.00k0.016% 3.1m
Hubert Paul Giraud
Head of Human Resources & Member of Executive Board0yrsno datano data
Patrick Nicolet
Group CTO & Member of Group Executive Board0yrsno datano data
Aiman Ezzat
COO & Member of Group Executive Board2.1yrsno datano data
Olivier Sevillia
Head of Europe & Member of the Executive Board0yrsno datano data
Cyril Garcia
CEO of Capgemini Invent & Member of Group Executive Board0.4yrsno datano data
Jean-Philippe Bol
Head of Americas & Asia Pacific and Member of the Executive Board0yrsno datano data
Thierry Delaporte
COO & Member of Group Executive Board2.1yrsno datano data

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: CAP's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Hermelin
Chairman7.8yrs€5.04m0.18% 34.1m
Lucia Sinapi-Thomas
Head of Business Services - Capgemini Prosodie & Director7.8yrs€61.00k0.016% 3.1m
Daniel Bernard
Vice-Chairman2.8yrs€136.00k0.00060% 113.7k
Pierre Pringuet
Lead Independent Director2.8yrs€106.00k0.0010% 193.4k
Laurence Dors
Independent Director9.8yrs€113.50k0.00060% 113.7k
Xavier Musca
Independent Director5.8yrs€82.00k0.00060% 113.7k
Patrick Pouyanné
Independent Director2.8yrs€63.50k0.00060% 113.7k
Anne Bouverot
Independent Director6.3yrs€66.00k0.00060% 113.7k
Kevin Masters
Director Representing Employees3.4yrs€61.00kno data
Robert Fretel
Director Representing Employees3.4yrs€66.00k0.000010% 1.9k

4.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CAP's board of directors are considered experienced (4.6 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 not been meaningfully diluted in the past year.


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: €18.957b
  • Shares outstanding: 167.24m
  • 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’s Consulting Services segment offers strategy and transformation consulting services, including strategy, technology, data science, and creative design to support various companies and organizations in creating models, and products and services within the digital economy. Its Technology and Engineering Services segment provides assistance and support to internal IT and engineering teams within clients’ organizations in the cloud, cybersecurity, quality assurance, testing, and new technologies fields. The company’s Application Services segment devises, develops, implements, and maintains IT applications, such as system integration and application maintenance activities. Its Other Managed Services segment integrates, manages, and develops client IT Infrastructure systems, as well as transaction services, on-demand, and business process outsourcing services. The company serves various industries, including consumer products, retail, and distribution; energy, utilities, and chemicals; financial services; manufacturing, automotive, and life sciences; public sector; services; and telecommunications, media, and entertainment. It 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 Analysis2020/02/24 20:58
End of Day Share Price2020/02/24 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.