Morningstar Rating
Stock XTSE Rating as of
CAD 150.49 +1.21(0.81%)
View Full ChartAs of Delayed Price Closed
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Company Report
Company Report
CGI's Short-Term Revenue Growth Is Slowing, but Our Long-Term View Is Unchanged
Malik Ahmed Khan
CGI is a leading global IT-services firm, catering a bit more to governmental agencies than its peers, providing managed IT, consulting, and intellectual property solutions. We believe that CGI benefits from strong switching costs and intangible assets, which lead us to assign the firm a narrow economic moat rating. Despite the macroeconomic headwinds, CGI has posted steady revenue due to long-term contracts with many of its clients. We think such stability will continue with the help of CGI’s switching costs and intangible assets, which both work to create stickiness among existing customers.
GIB.A is trading at a 300% premium.
Price
CAD 150.49
Fair Value
CAD 398.00
Uncertainty
Medium
- 1-Star Price
- CAD 312.51
- 5-Star Price
- CAD 39.60
- Economic Moat
- Zsttkq
- Capital Allocation
- Dgzdpnphc
Bulls Say, Bears Say
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 as it remains at a cost disadvantage to Indian competitors.
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News
News
- CGI continues technology modernization initiatives for the Environmental Protection Agency
- CGI to release third quarter fiscal 2024 results on July 31
- CGI positioned as a Major Player for Worldwide Business Consulting Services in IDC MarketScape Report
- CGI announces Agile Catalyst™ framework for U.S. federal agencies
- Bladex selects CGI as partner for trade finance business evolution, enabled by the CGI Trade360® global technology platform
- Bladex Selects CGI as Partner for Trade Finance Business Evolution, Enabled by the CGI Trade360® Global Technology Platform
- CGI wins Business Value Award by the DevOps Agile Skills Association (DASA)
- City of Austin Selects CGI to upgrade business management systems to CGI Advantage®
Trading Information
Trading Information
- Previous Close Price
- CAD 149.28
- Day Range
CAD 149.47–151.81
- 52-Week Range
CAD 129.00–160.40
- Bid/Ask
- CAD 152.00/CAD 152.00
- Market Cap
- CAD 34.33 Bil
- Volume/Avg
- 366,619/363,102
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 19.89
- Price/Sales
- 2.44
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- 2.18%
Company Profile
Company Profile
CGI 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. Its largest vertical market is government, which contributes more than a third of group revenue.
- Sector
- Technology
- Industry
- Information Technology Services
- Stock Style Box
- Large Core
- Total Number of Employees
- 91,500
- Website
- https://www.cgi.com
Competitors
Competitors
- Infosys Ltd ADR INFY
- Tata Consultancy Services Ltd TCS
- Accenture PLC Class A ACN
Valuation
Valuation
| Metric | GIB.A | INFY | TCS |
|---|---|---|---|
Price/Earnings (Normalized) | 19.89 | 1.41 | 34.62 |
Price/Book Value | 3.89 | 9.48 | 16.83 |
Price/Sales | 2.44 | 5.06 | 6.54 |
Price/Cash Flow | 16.51 | 25.05 | 31.50 |
Price/Earnings
GIB.A
INFY
TCS
Financial Strength
Financial Strength
| Metric | GIB.A | INFY | TCS |
|---|---|---|---|
Quick Ratio | 0.67 | 1.35 | 2.20 |
Current Ratio | 1.17 | 1.89 | 2.46 |
Interest Coverage | 26.08 | — | 74.34 |
Quick Ratio
GIB.A
INFY
TCS
Profitability
Profitability
| Metric | GIB.A | INFY | TCS |
|---|---|---|---|
Return on Assets (Normalized) | 10.94% | 19.91% | 31.39% |
Return on Equity (Normalized) | 20.63% | 33.00% | 50.38% |
Return on Invested Capital (Normalized) | 14.77% | 30.02% | 42.71% |
Return on Assets
GIB.A
INFY
TCS
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Information Technology Services Industry Comparables
Information Technology Services Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Accenture PLC Class A ACN | Nbkdwxhhm | Ngtb | $205.7 Bil | |||
| International Business Machines Corp IBM | Wdw | Nzjhk | $176.1 Bil | |||
| Infosys Ltd ADR INFY | Lbrsczk | Hqjnd | $92.9 Bil | |||
| Fiserv Inc FI | Kkscjjzv | Gqffxs | $92.1 Bil | |||
| Fidelity National Information Services Inc FIS | Vxmwcpy | Nzqhrbq | $42.1 Bil | |||
| Cognizant Technology Solutions Corp Class A CTSH | Mzwdhyl | Wllhjm | $37.1 Bil | |||
| Wipro Ltd ADR WIT | Czvfjvg | Ckkwfv | $32.8 Bil | |||
| Broadridge Financial Solutions Inc BR | Ngdncfnbx | Yqjrpzy | $25.1 Bil | |||
| CGI Inc Class A GIB | Bcjjhkc | Sfgvbf | $24.8 Bil | |||
| JKHY | Svxrrhsrr | Vmm | $12.4 Bil |
