CGI Inc.
CGI Inc. Fundamental Analysis
CGI Inc. (GIB) shows moderate financial fundamentals with a PE ratio of 13.23, profit margin of 10.25%, and ROE of 16.37%. The company generates $16.5B in annual revenue with moderate year-over-year growth of 8.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GIB's fundamental strength across five key dimensions:
Efficiency Score
WeakGIB struggles to generate sufficient returns from assets.
Valuation Score
ModerateGIB shows balanced valuation metrics.
Growth Score
ModerateGIB shows steady but slowing expansion.
Financial Health Score
ModerateGIB shows balanced financial health with some risks.
Profitability Score
ModerateGIB maintains healthy but balanced margins.
Key Financial Metrics
Is GIB Expensive or Cheap?
P/E Ratio
GIB trades at 13.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GIB's PEG of 7.19 indicates potential overvaluation.
Price to Book
The market values CGI Inc. at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.39 times EBITDA. This is generally considered low.
How Well Does GIB Make Money?
Net Profit Margin
For every $100 in sales, CGI Inc. keeps $10.25 as profit after all expenses.
Operating Margin
Core operations generate 20.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.37 in profit for every $100 of shareholder equity.
ROA
CGI Inc. generates $8.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CGI Inc. produces operating cash flow of $2.51B, showing steady but balanced cash generation.
Free Cash Flow
CGI Inc. generates strong free cash flow of $2.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.30 in free cash annually.
FCF Yield
GIB converts 9.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How GIB Stacks Against Its Sector Peers
| Metric | GIB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.23 | 35.19 | Better (Cheaper) |
| ROE | 16.37% | 1155.00% | Weak |
| Net Margin | 10.25% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.48 | 0.41 | Neutral |
| Current Ratio | 0.94 | 4.71 | Weak Liquidity |
| ROA | 8.79% | -314918.00% (disorted) | Weak |
GIB outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CGI Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.92%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
72.27%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
33.84%
Industry Style: Growth, Innovation, High Beta
High Growth