Capgemini SE
Capgemini SE Fundamental Analysis
Capgemini SE (CAP.PA) shows moderate financial fundamentals with a PE ratio of 13.85, profit margin of 7.33%, and ROE of 10.95%. The company generates $16.8B in annual revenue with weak year-over-year growth of -1.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CAP.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakCAP.PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCAP.PA trades at attractive valuation levels.
Growth Score
WeakCAP.PA faces weak or negative growth trends.
Financial Health Score
ExcellentCAP.PA maintains a strong and stable balance sheet.
Profitability Score
WeakCAP.PA struggles to sustain strong margins.
Key Financial Metrics
Is CAP.PA Expensive or Cheap?
P/E Ratio
CAP.PA trades at 13.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CAP.PA's PEG of 1.58 indicates fair valuation.
Price to Book
The market values Capgemini SE at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.28 times EBITDA. This signals the market has high growth expectations.
How Well Does CAP.PA Make Money?
Net Profit Margin
For every $100 in sales, Capgemini SE keeps $7.33 as profit after all expenses.
Operating Margin
Core operations generate 3.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.95 in profit for every $100 of shareholder equity.
ROA
Capgemini SE generates $4.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capgemini SE produces operating cash flow of $2.30B, showing steady but balanced cash generation.
Free Cash Flow
Capgemini SE generates strong free cash flow of $2.08B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.43 in free cash annually.
FCF Yield
CAP.PA converts 12.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.007
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CAP.PA Stacks Against Its Sector Peers
| Metric | CAP.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.85 | 33.98 | Better (Cheaper) |
| ROE | 10.95% | 1007.00% | Weak |
| Net Margin | 7.33% | -47797.00% (disorted) | Weak |
| Debt/Equity | 0.89 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.18 | 5.66 | Neutral |
| ROA | 4.26% | -287350.00% (disorted) | Weak |
CAP.PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capgemini SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.73%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
90.59%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
38.63%
Industry Style: Growth, Innovation, High Beta
High Growth