Capgemini SE (CAP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Infotel SA

Capgemini SE

Sword Group SE

SQLI SA

Sopra Steria Group SA

Atos SE

OVH Groupe SAS

Mexedia SpA

Cheops Technology SA

SII SA

Visiativ SA

Why is Capgemini SE ?

High Management Efficiency with a high ROCE of 18.81%

Flat results in Jun 25

ROCE(HY) Lowest at 14.3%
CASH AND EQV(HY) Lowest at EUR 2,372 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 3.76%

With ROE of 15.80%, it has a Attractive valuation with a 1.91 Price to Book Value

Over the past year, while the stock has generated a return of -5.99%, its profits have fallen by -6.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.99% returns in the last 1 year, the stock has also underperformed France CAC 40 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Capgemini SE should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Capgemini SE for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Capgemini SE

-5.99%

0.97

32.01%

France CAC 40

8.73%

0.52

16.76%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

8.09%

EBIT to Interest (avg)

14.37

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.26

Tax Ratio

28.75%

Dividend Payout Ratio

34.63%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

18.81%

ROE (avg)

16.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.91

EV to EBIT

9.61

EV to EBITDA

7.52

EV to Capital Employed

1.71

EV to Sales

1.09

PEG Ratio

Dividend Yield

2.79%

ROCE (Latest)

17.77%

ROE (Latest)

15.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 5,189 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,907.5

RAW MATERIAL COST(Y)

Fallen by 0.21% (YoY

-9What is not working for the Company

ROCE(HY)

Lowest at 14.3%

CASH AND EQV(HY)

Lowest at EUR 2,372 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.76%

OPERATING PROFIT(Q)

Lowest at EUR 1,526 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.74 %

PRE-TAX PROFIT(Q)

Lowest at EUR 1,119 MM

NET PROFIT(Q)

Lowest at EUR 817.71 MM

EPS(Q)

Lowest at EUR 4.11

Here's what is working for Capgemini SE

Operating Cash Flow

Highest at EUR 5,189 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Interest Coverage Ratio

Highest at 1,907.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by 0.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Capgemini SE

Operating Profit

Lowest at EUR 1,526 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin

Lowest at 13.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at EUR 1,119 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR 817.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR 4.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Cash and Eqv

Lowest at EUR 2,372 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.76%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio