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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

CGI Narrowly Misses Our Top-Line Expectations, Reports Strong Bookings; Maintain CAD 104 FVE

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Narrow-moat CGI reported top-line results that were narrowly below our expectations to close out the second quarter of fiscal 2021. Despite the narrow miss this quarter, the company reported solid bookings and a book/bill ratio well above 100%, underscoring CGI’s healthy business pipeline. We expect the firm to continue its steady recovery from the pandemic-induced revenue slowdowns of fiscal 2020, and with that in mind, we are maintaining our CAD 104 fair value estimate. With shares trading around CAD 105, we consider CGI shares fairly valued.

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Company Profile

Business Description

CGI Inc. is a Canada-based IT-services provider with an embedded position in North America and Europe. The company generates more than CAD 12 billion in annual revenue, employs over 76,000 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 (BPS). The company's largest vertical market is government, which contributes around 33% of group revenue.

Contact
1350 Rene-Levesque Boulevard West, 25th Floor
Montreal, QC, H3G 1T4, Canada
T +1 514 841-3200
Sector Technology
Industry Information Technology Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Sep 30, 2021
Stock Type
Employees 77,000

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