Skip to Content

CGI Inc Class A GIB

Morningstar Rating
$101.47 +0.11 (0.11%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

CGI Earnings: Strong Execution Marks the Quarter Despite Macro Pressures Persisting

We are raising our fair value estimate for narrow-moat CGI to CAD 137 from CAD 130. This raise is a result of solid fourth-quarter financial results as well as the time value of money following our valuation model roll. While macro pressures continued to stretch clients’ budgets, we are impressed by CGI’s ability to maintain a steady ship, producing strong sales and profitability during this turbulent period. We reiterate our belief that as macroeconomic pressures dissipate over the next few quarters, we expect CGI’s clients to restart/accelerate their spending on CGI’s solutions. With shares trading slightly down after the earnings report, we view them as fairly valued.

Price vs Fair Value

GIB is trading within a range we consider fairly valued.
Price
$101.27
Fair Value
$34.00
Uncertainty
Medium
1-Star Price
$223.74
5-Star Price
$95.70
Economic Moat
Xhztzv
Capital Allocation
Flkpcdfr

Bulls Say, Bears Say

Bulls

CGI has an outsize presence in the government vertical, which could lead to further growth if government agencies place increasing importance on total investment in IT needs.

Bears

CGI's lower offshore leverage could affect its bottom-line for years to come as they remain at a cost disadvantage to its Indian competitors.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GIB is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$101.36
Day Range
$101.17101.47
52-Week Range
$83.42107.64
Bid/Ask
$101.12 / $101.87
Market Cap
$23.57 Bil
Volume/Avg
152,218 / 129,068

Key Statistics

Price/Earnings (Normalized)
19.36
Price/Sales
2.27
Dividend Yield
Dividend Yield (Forward)
Total Yield
2.44%

Company Profile

CGI Inc. is a Canada-based IT-services provider with an embedded position in North America and Europe. The company generates more than CAD 14 billion in annual revenue, employs over 90,000 personnel, and operates across 400 offices in 40 countries. CGI offers a broad portfolio of services such as consulting, systems integration, application maintenance, and business process services, or BPS. The company's largest vertical market is government, which contributes more than a third of group revenue.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Growth
Total Number of Employees
90,000

Competitors

Valuation

Metric
GIB
ACN
INFY
Price/Earnings (Normalized)
19.3628.4924.13
Price/Book Value
3.868.977.40
Price/Sales
2.273.313.89
Price/Cash Flow
15.5119.8218.84
Price/Earnings
GIB
ACN
INFY

Financial Strength

Metric
GIB
ACN
INFY
Quick Ratio
0.681.181.80
Current Ratio
1.151.301.98
Interest Coverage
25.22187.4183.54
Quick Ratio
GIB
ACN
INFY

Profitability

Metric
GIB
ACN
INFY
Return on Assets (Normalized)
10.44%17.39%19.94%
Return on Equity (Normalized)
21.25%38.66%33.21%
Return on Invested Capital (Normalized)
14.52%29.72%28.77%
Return on Assets
GIB
ACN
INFY

Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ACN
Accenture PLC Class AKln$208.6 Bil
IBM
International Business Machines CorpKvcbyb$142.1 Bil
FI
Fiserv IncFlxmsn$75.9 Bil
INFY
Infosys Ltd ADRHyvyry$71.4 Bil
CTSH
Cognizant Technology Solutions Corp Class ADlyspzd$35.5 Bil
FIS
Fidelity National Information Services IncQrzmcg$33.2 Bil
WIT
Wipro Ltd ADRQpyknm$24.8 Bil
BR
Broadridge Financial Solutions IncRdxykv$22.1 Bil
EPAM
EPAM Systems IncJvbqvfn$14.7 Bil