CGI, Inc. (GIB.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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CGI, Inc.

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Brookfield Business Partners LP

Why is CGI, Inc. ?

High Management Efficiency with a high ROCE of 21.65%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 26.25

Poor long term growth as Net Sales has grown by an annual rate of 4.99% and Operating profit at 6.96% over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 17.93%
INTEREST COVERAGE RATIO(Q) Lowest at 2,221.55
DEBT-EQUITY RATIO (HY) Highest at 30.45 %

With ROE of 18.50%, it has a expensive valuation with a 2.57 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.75%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.4

High Institutional Holdings at 62.38%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.81% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -19.75% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CGI, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CGI, Inc.

-33.21%

2.79

20.57%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.97%

EBIT Growth (5y)

7.72%

EBIT to Interest (avg)

26.25

Debt to EBITDA (avg)

0.77

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.19

Tax Ratio

26.11%

Dividend Payout Ratio

8.33%

Pledged Shares

Institutional Holding

65.19%

ROCE (avg)

21.65%

ROE (avg)

19.70%

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

2.13

EV to EBIT

8.84

EV to EBITDA

7.20

EV to Capital Employed

1.87

EV to Sales

1.49

PEG Ratio

1.04

Dividend Yield

ROCE (Latest)

21.16%

ROE (Latest)

19.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2,459.69 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 8.31%

RAW MATERIAL COST(Y)

Fallen by -0.27% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.03 times

DIVIDEND PER SHARE(HY)

Highest at CAD 6.03

EPS(Q)

Highest at CAD 2.03

-14What is not working for the Company

INTEREST(HY)

At CAD 67.62 MM has Grown at 64.29%

ROCE(HY)

Lowest at 16.78%

CASH AND EQV(HY)

Lowest at CAD 1,708.99 MM

DEBT-EQUITY RATIO (HY)

Highest at 34.68 %

OPERATING PROFIT MARGIN(Q)

Lowest at 19.66 %

Here's what is working for CGI, Inc.

Operating Cash Flow

Highest at CAD 2,459.69 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 (CAD MM)

EPS

Highest at CAD 2.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Highest at 6.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CAD 6.03

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 8.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.27% (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 CGI, Inc.

Interest

At CAD 67.62 MM has Grown at 64.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 19.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CAD 1,708.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 34.68 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio