Skip to Content

CGI Inc Class A GIB

Morningstar Rating
$116.05 +0.09 (0.08%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

CGI Earnings: Strong Bookings Growth and More Emphasis on Financial Discipline as CGI Kicks Off 2024

We maintain our CAD 137 fair value estimate for narrow-moat CGI after the firm kicked off fiscal 2024 with a strong set of results, combining top-line growth with an increased emphasis on operational discipline, as evidenced by the firm’s cost optimization program. With forward-looking metrics such as bookings showing strength, we think a mixture of an improving macro as well as client demand for AI solutions will provide positive tailwinds for CGI’s near-term sales. At the same time, we expect management’s cost optimization program to provide a margin uplift in the medium to long term. With shares trading slightly up after the earnings report, we view them as marginally overvalued.

Price vs Fair Value

GIB is trading at a 14% premium.
Price
$116.05
Fair Value
$424.00
Uncertainty
Medium
1-Star Price
$119.40
5-Star Price
$99.10
Economic Moat
Wztsj
Capital Allocation
Xmlynyh

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
$115.96
Day Range
$115.78117.00
52-Week Range
$88.74117.00
Bid/Ask
$116.10 / $119.99
Market Cap
$27.02 Bil
Volume/Avg
125,357 / 132,303

Key Statistics

Price/Earnings (Normalized)
21.13
Price/Sales
2.56
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.43%

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
91,500

Competitors

Valuation

Metric
GIB
ACN
INFY
Price/Earnings (Normalized)
21.1332.3527.89
Price/Book Value
4.169.978.52
Price/Sales
2.563.794.43
Price/Cash Flow
17.4522.6421.48
Price/Earnings
GIB
ACN
INFY

Financial Strength

Metric
GIB
ACN
INFY
Quick Ratio
0.661.181.68
Current Ratio
1.111.331.99
Interest Coverage
25.59162.06
Quick Ratio
GIB
ACN
INFY

Profitability

Metric
GIB
ACN
INFY
Return on Assets (Normalized)
10.76%17.12%19.14%
Return on Equity (Normalized)
20.81%37.32%32.00%
Return on Invested Capital (Normalized)
14.63%28.70%28.86%
Return on Assets
GIB
ACN
INFY
See how this stock stacks up to its competitors with Morningstar Investor

Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ACN
Accenture PLC Class AJtvp$240.6 Bil
IBM
International Business Machines CorpMhrttf$177.0 Bil
FI
Fiserv IncSrmdcy$88.6 Bil
INFY
Infosys Ltd ADRPkyymm$81.8 Bil
FIS
Fidelity National Information Services IncKzdgcp$40.0 Bil
CTSH
Cognizant Technology Solutions Corp Class ALffwsc$39.4 Bil
WIT
Wipro Ltd ADRHtwwvd$32.8 Bil
BR
Broadridge Financial Solutions IncZyhrdlb$24.2 Bil
EPAM
EPAM Systems IncNkvwpz$17.8 Bil

Sponsor Center