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Capgemini SE CAP

Morningstar Rating
€213.00 −0.30 (0.14%)
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Company Report

Capgemini: Revenue Growth Trough Confirmed; Shares Fairly Valued

Narrow-moat Capgemini reported a 3.3% decline in constant-currency sales in its first-quarter trading update. Not completely surprising, as the company previously indicated the first quarter would be the trough in sales growth for the fiscal year. Shares were down around 2% intraday. We don’t expect to make a material change to our EUR 210 fair value estimate. At current levels, the shares look fairly valued.

Price vs Fair Value

CAP is trading at a 665% premium.
Price
€213.30
Fair Value
€935.00
Uncertainty
Medium
1-Star Price
€468.90
5-Star Price
€429.00
Economic Moat
Tlclc
Capital Allocation
Kzxjvltb

Bulls Say, Bears Say

Bulls

Capgemini’s long-term growth profile has been upgraded due to the structural demand trend for digital transformation services.

Bears

Indian competitors are increasingly targeting Europe for growth, which is the region where Capgemini still generates most of its revenue.

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News

Trading Information

Previous Close Price
€213.30
Day Range
€211.20214.40
52-Week Range
€152.25227.40
Bid/Ask
€212.80 / €213.20
Market Cap
€36.45 Bil
Volume/Avg
342,270 / 339,011

Key Statistics

Price/Earnings (Normalized)
16.92
Price/Sales
1.68
Dividend Yield (Trailing)
1.55%
Dividend Yield (Forward)
1.62%
Total Yield
2.65%

Company Profile

Capgemini is a French IT services company with a global presence. The firm has over 450 offices globally, with more than half of its employees based in India. Capgemini provides services related to IT consulting, software application and technology services, infrastructure management, engineering research and development, and business process outsourcing.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
340,400

Competitors

Valuation

Metric
CAP
INFY
ACN
Price/Earnings (Normalized)
16.9224.4525.62
Price/Book Value
3.496.817.62
Price/Sales
1.683.883.02
Price/Cash Flow
14.2119.0818.18
Price/Earnings
CAP
INFY
ACN

Financial Strength

Metric
CAP
INFY
ACN
Quick Ratio
1.261.681.13
Current Ratio
1.341.991.26
Interest Coverage
12.47168.58
Quick Ratio
CAP
INFY
ACN

Profitability

Metric
CAP
INFY
ACN
Return on Assets (Normalized)
8.45%19.14%17.18%
Return on Equity (Normalized)
21.15%32.00%36.65%
Return on Invested Capital (Normalized)
12.28%28.86%28.45%
Return on Assets
CAP
INFY
ACN
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