Capgemini
Market Cap
€19.2b
Last Updated
2020/02/15 20:54 UTC
Data Sources
Company Financials +
Executive Summary
Capgemini SE provides consulting, technology, and digital transformation services.
Rewards
Risk Analysis
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
-1.1%
CAP
1.0%
FR IT
1.0%
FR Market
1 Year Return
12.1%
CAP
19.2%
FR IT
17.2%
FR Market
Return vs Industry: CAP underperformed the French IT industry which returned 19.1% over the past year.
Return vs Market: CAP underperformed the French Market which returned 17.3% over the past year.
Shareholder returns
| CAP | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | 1.0% | 1.0% |
| 30 Day | 0.1% | 3.4% | 0.7% |
| 90 Day | 7.9% | 13.5% | 3.2% |
| 1 Year | 14.1%12.1% | 26.8%19.2% | 21.3%17.2% |
| 3 Year | 47.2%40.1% | 51.3%34.1% | 43.9%30.3% |
| 5 Year | 83.0%68.9% | 132.7%101.6% | 56.4%34.4% |
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
6 days ago | Simply Wall St
How Should Investors Feel About Capgemini SE's (EPA:CAP) CEO Pay?3 weeks ago | Simply Wall St
Does Capgemini (EPA:CAP) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
Evaluating Capgemini SE’s (EPA:CAP) Investments In Its BusinessValuation
Is Capgemini undervalued compared to its fair value and its price relative to the market?
5.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAP (€114.95) is trading below our estimate of fair value (€122.22)
Significantly Below Fair Value: CAP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CAP is poor value based on its PE Ratio (22.3x) compared to the IT industry average (18.7x).
PE vs Market: CAP is poor value based on its PE Ratio (22.3x) compared to the French market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: CAP is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: CAP is overvalued based on its PB Ratio (2.6x) compared to the FR IT industry average (2.3x).
Next Steps
Future Growth
How is Capgemini forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
11.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAP's forecast earnings growth (11.3% per year) is above the savings rate (-0.1%).
Earnings vs Market: CAP's earnings (11.3% per year) are forecast to grow slower than the French market (12.2% per year).
High Growth Earnings: CAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAP's revenue (5% per year) is forecast to grow faster than the French market (4.5% per year).
High Growth Revenue: CAP's revenue (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 (12.9%).
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 11.9%.
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?
1.65%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CAP's dividend (1.65%) is higher than the bottom 25% of dividend payers in the French market (1.53%).
High Dividend: CAP's dividend (1.65%) is low compared to the top 25% of dividend payers in the French market (4.52%).
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 (30.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
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 ($USD5.46M) is above average for companies of similar size in the French market ($USD3.31M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.8yrs | €5.04m | 0.18% €34.6m | |
| CFO & Member of Group Executive Board | 1.7yrs | €27.25k | no data | |
| Head of Business Services - Capgemini Prosodie & Director | 7.8yrs | €61.00k | 0.016% €3.1m | |
| Head of Human Resources & Member of Executive Board | 0yrs | no data | no data | |
| Group CTO & Member of Group Executive Board | 0yrs | no data | no data | |
| COO & Member of Group Executive Board | 0yrs | no data | no data | |
| Head of Europe & Member of the Executive Board | 0yrs | no data | no data | |
| CEO of Capgemini Invent & Member of Group Executive Board | 0.4yrs | no data | no data | |
| Head of Americas & Asia Pacific and Member of the Executive Board | 0yrs | no data | no data | |
| COO & Member of Group Executive Board | 0yrs | no data | no data |
2.5yrs
Average Tenure
58yo
Average Age
Experienced Management: CAP's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.8yrs | €5.04m | 0.18% €34.6m | |
| Head of Business Services - Capgemini Prosodie & Director | 7.8yrs | €61.00k | 0.016% €3.1m | |
| Vice-Chairman | 2.8yrs | €136.00k | 0.00060% €115.3k | |
| Lead Independent Director | 2.8yrs | €106.00k | 0.0010% €196.1k | |
| Independent Director | 9.8yrs | €113.50k | 0.00060% €115.3k | |
| Independent Director | 5.8yrs | €82.00k | 0.00060% €115.3k | |
| Independent Director | 2.8yrs | €63.50k | 0.00060% €115.3k | |
| Independent Director | 6.3yrs | €66.00k | 0.00060% €115.3k | |
| Director Representing Employees | 3.4yrs | €61.00k | no data | |
| Director Representing Employees | 3.4yrs | €66.00k | 0.000010% €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: €19.225b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAPM.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 1992 |
| CAP | ENXTPA (Euronext Paris) | Yes | Common Shares | FR | EUR | Jan 1992 |
| 0HAZ | LSE (London Stock Exchange) | Yes | Common Shares | GB | EUR | Jan 1992 |
| CGM | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1992 |
| CAPP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | EUR | Jan 1992 |
| CAPP-U | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Jan 1992 |
| CAP | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Jan 1992 |
| CAPG | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1992 |
| CAPG N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1992 |
| CGEM.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/15 20:54 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.