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CGI

TSX:GIB.A
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GIB.A
TSX
CA$22B
Market Cap
  1. Home
  2. CA
  3. Software
Company description

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. The last earnings update was 71 days ago. More info.


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  • CGI has significant price volatility in the past 3 months.
GIB.A Share Price and Events
7 Day Returns
6%
TSX:GIB.A
3.3%
CA IT
2.1%
CA Market
1 Year Returns
-11.7%
TSX:GIB.A
-15.1%
CA IT
-21.2%
CA Market
GIB.A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CGI (GIB.A) 6% -13.8% -27.1% -11.7% 31.5% 45.3%
CA IT 3.3% -16.9% -28.7% -15.1% 23.8% 38.3%
CA Market 2.1% -13.8% -21.9% -21.2% -19.3% -13.6%
1 Year Return vs Industry and Market
  • GIB.A outperformed the IT industry which returned -15.1% over the past year.
  • GIB.A outperformed the Market in Canada which returned -21.2% over the past year.
Price Volatility
GIB.A
Industry
5yr Volatility vs Market

GIB.A Value

 Is CGI undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CGI to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CGI.

TSX:GIB.A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:GIB.A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.934 (1 + (1- 26.5%) (13.9%))
1.019
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.019 * 5.44%)
6.99%

Discounted Cash Flow Calculation for TSX:GIB.A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CGI is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:GIB.A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.99%)
2020 1,684.30 Analyst x4 1,574.32
2021 1,777.37 Analyst x4 1,552.84
2022 1,705.54 Analyst x1 1,392.80
2023 1,667.58 Est @ -2.23% 1,272.89
2024 1,648.80 Est @ -1.13% 1,176.38
2025 1,642.93 Est @ -0.36% 1,095.65
2026 1,645.93 Est @ 0.18% 1,025.99
2027 1,655.15 Est @ 0.56% 964.37
2028 1,668.78 Est @ 0.82% 908.83
2029 1,685.62 Est @ 1.01% 858.06
Present value of next 10 years cash flows CA$11,822.00
TSX:GIB.A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$1,685.62 × (1 + 1.44%) ÷ (6.99% – 1.44%)
CA$30,834.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$30,834.66 ÷ (1 + 6.99%)10
CA$15,696.26
TSX:GIB.A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$11,822.00 + CA$15,696.26
CA$27,518.26
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$27,518.26 / 268.33
CA$102.55
TSX:GIB.A Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$102.55
Current discount Discount to share price of CA$81.59
= -1 x (CA$81.59 - CA$102.55) / CA$102.55
20.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CGI is available for.
Intrinsic value
20%
Share price is CA$81.59 vs Future cash flow value of CA$102.55
Current Discount Checks
For CGI to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CGI's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CGI's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CGI's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CGI's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:GIB.A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$4.59
TSX:GIB.A Share Price ** TSX (2020-04-08) in CAD CA$81.59
Canada IT Industry PE Ratio Median Figure of 7 Publicly-Listed IT Companies 29.28x
Canada Market PE Ratio Median Figure of 501 Publicly-Listed Companies 10.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CGI.

TSX:GIB.A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:GIB.A Share Price ÷ EPS (both in CAD)

= 81.59 ÷ 4.59

17.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is good value based on earnings compared to the CA IT industry average.
  • CGI is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does CGI's expected growth come at a high price?
Raw Data
TSX:GIB.A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
6.2%per year
North America IT Industry PEG Ratio Median Figure of 61 Publicly-Listed IT Companies 1.91x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

TSX:GIB.A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.77x ÷ 6.2%

2.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CGI's assets?
Raw Data
TSX:GIB.A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$26.41
TSX:GIB.A Share Price * TSX (2020-04-08) in CAD CA$81.59
Canada IT Industry PB Ratio Median Figure of 25 Publicly-Listed IT Companies 2.77x
Canada Market PB Ratio Median Figure of 2,366 Publicly-Listed Companies 1.02x
TSX:GIB.A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:GIB.A Share Price ÷ Book Value per Share (both in CAD)

= 81.59 ÷ 26.41

3.09x

* Primary Listing of CGI.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CGI is overvalued based on assets compared to the CA IT industry average.
X
Value checks
We assess CGI's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. CGI has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GIB.A Future Performance

 How is CGI expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CGI expected to grow at an attractive rate?
  • CGI's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • CGI's earnings growth is positive but not above the Canada market average.
  • CGI's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:GIB.A Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:GIB.A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 6.2%
TSX:GIB.A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3%
North America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
Canada IT Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:GIB.A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:GIB.A Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 12,962 1,878 1,409 3
2021-09-30 12,940 2,006 1,393 17
2020-09-30 12,422 1,905 1,269 15
2020-04-09
TSX:GIB.A Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 12,202 1,708 1,242
2019-09-30 12,111 1,634 1,263
2019-06-30 11,951 1,569 1,233
2019-03-31 11,772 1,511 1,212
2018-12-31 11,654 1,475 1,168
2018-09-30 11,507 1,493 1,141
2018-06-30 11,316 1,505 1,056
2018-03-31 11,212 1,478 1,045
2017-12-31 10,986 1,419 1,045
2017-09-30 10,845 1,359 1,035
2017-06-30 10,819 1,408 1,101
2017-03-31 10,650 1,469 1,098

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CGI's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • CGI's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:GIB.A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from CGI Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GIB.A Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 5.65 5.65 5.65 1.00
2021-09-30 5.31 5.62 5.00 5.00
2020-09-30 4.80 4.97 4.65 5.00
2020-04-09
TSX:GIB.A Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 4.59
2019-09-30 4.63
2019-06-30 4.47
2019-03-31 4.36
2018-12-31 4.15
2018-09-30 4.02
2018-06-30 3.68
2018-03-31 3.60
2017-12-31 3.56
2017-09-30 3.48
2017-06-30 3.67
2017-03-31 3.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CGI is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CGI's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CGI has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GIB.A Past Performance

  How has CGI performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CGI's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CGI's year on year earnings growth rate has been positive over the past 5 years.
  • CGI's 1-year earnings growth exceeds its 5-year average (6.4% vs 5.7%)
  • CGI's earnings growth has not exceeded the North America IT industry average in the past year (6.4% vs 13%).
Earnings and Revenue History
CGI's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CGI Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GIB.A Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12,202.04 1,241.93 1,439.92
2019-09-30 12,111.24 1,263.21 1,439.92
2019-06-30 11,950.97 1,232.60 1,369.42
2019-03-31 11,771.88 1,211.52 1,369.42
2018-12-31 11,653.88 1,167.61 1,369.42
2018-09-30 11,506.83 1,141.40 1,369.42
2018-06-30 11,315.96 1,056.38 1,273.94
2018-03-31 11,212.07 1,044.74 1,273.94
2017-12-31 10,986.24 1,044.81 1,273.94
2017-09-30 10,845.07 1,035.20 1,273.94
2017-06-30 10,819.40 1,101.17 1,243.14
2017-03-31 10,649.69 1,098.36 1,243.14
2016-12-31 10,675.31 1,106.65 1,243.14
2016-09-30 10,683.26 1,068.72 1,243.14
2016-06-30 10,686.11 1,027.17 1,220.99
2016-03-31 10,578.36 1,010.57 1,220.99
2015-12-31 10,429.52 979.01 1,220.99
2015-09-30 10,287.10 977.56 1,220.99
2015-06-30 10,185.49 958.38 1,260.96
2015-03-31 10,293.18 926.23 1,260.96
2014-12-31 10,396.24 905.91 1,260.96
2014-09-30 10,499.69 859.44 1,260.96
2014-06-30 10,474.23 786.76 1,311.32
2014-03-31 10,374.45 739.83 1,311.32
2013-12-31 10,196.41 623.17 1,311.32
2013-09-30 10,084.62 455.82 1,311.32
2013-06-30 9,236.08 146.83 592.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CGI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CGI used its assets more efficiently than the CA IT industry average last year based on Return on Assets.
  • CGI's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess CGI's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CGI has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GIB.A Health

 How is CGI's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CGI's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CGI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CGI's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CGI's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CGI Company Filings, last reported 3 months ago.

TSX:GIB.A Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 7,084.80 2,141.29 223.15
2019-09-30 6,884.10 2,320.41 223.72
2019-06-30 6,670.79 2,591.87 225.15
2019-03-31 6,982.22 2,177.95 543.96
2018-12-31 6,931.98 2,243.56 406.13
2018-09-30 6,684.81 1,873.92 184.09
2018-06-30 6,729.49 1,901.10 171.10
2018-03-31 6,860.03 1,853.33 287.55
2017-12-31 6,553.08 1,907.16 238.94
2017-09-30 6,202.63 1,940.70 165.87
2017-06-30 6,641.95 1,786.51 302.94
2017-03-31 6,407.93 1,811.71 282.04
2016-12-31 6,358.20 1,839.29 313.91
2016-09-30 6,464.61 1,957.10 596.53
2016-06-30 6,102.27 1,956.80 283.68
2016-03-31 5,985.16 2,119.84 168.92
2015-12-31 6,438.63 2,177.89 552.35
2015-09-30 6,082.17 2,128.17 305.26
2015-06-30 5,790.80 2,100.97 264.70
2015-03-31 5,518.45 2,133.79 223.51
2014-12-31 5,217.07 2,454.30 489.58
2014-09-30 4,988.73 2,690.56 535.72
2014-06-30 4,787.80 2,560.38 131.32
2014-03-31 4,688.55 2,859.19 133.75
2013-12-31 4,298.93 3,146.40 206.51
2013-09-30 4,055.70 2,880.54 106.20
2013-06-30 3,939.88 3,057.93 165.31
  • CGI's level of debt (30.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (46.9% vs 30.2% today).
  • Debt is well covered by operating cash flow (79.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 29.1x coverage).
X
Financial health checks
We assess CGI's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CGI has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GIB.A Dividends

 What is CGI's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CGI dividends. Estimated to be 0% next year.
If you bought CA$2,000 of CGI shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CGI's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CGI's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:GIB.A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
North America IT Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.6%
Canada Top 25% Dividend Yield 75th Percentile 8.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:GIB.A Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.00 1.00
2021-09-30 0.00 2.00
2020-09-30 0.00 2.00
2020-04-09

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CGI has not reported any payouts.
  • Unable to verify if CGI's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CGI's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CGI has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CGI's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess CGI's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CGI afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CGI has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GIB.A Management

 What is the CEO of CGI's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
George Schindler
COMPENSATION CA$10,352,766
AGE 56
TENURE AS CEO 3.5 years
CEO Bio

Mr. George D. Schindler has been the Chief Executive Officer, President and Director at CGI Group Inc. since October 1, 2016. Mr. Schindler served as the Chief Operating Officer at CGI Group Inc. since May 2014 until October 1, 2016 and served as its President of CGI United States. Mr. Schindler served as the President of United States and Canada at CGI Group Inc., since January 30, 2013 and served as its President U.S. Operations since October 2011. As a member of CGI’s Management Committee, he also participated in the development and execution of CGI’s global strategy. He served as the President of Stanley, Inc., since August 2010. He served as the President of CGI Federal Inc. from 2006 to October 1, 2011, where he led CGI’s business with the Civilian, Defense and Intelligence Sectors of the U.S. government. Under his leadership, CGI Federal was named the 2010 Greater Washington U.S. Government Contractor of the Year (greater than $300 million) by the Fairfax County Chamber of Commerce, PSC and Washington Technology. CGI was also named one of the “9 Hot Companies to Watch” by Federal Computer Week. Prior to leading CGI Federal, Mr. Schindler was the U.S. Lead of the Banking and Investments Industry Group. As a Senior Vice-President, he also had responsibility for managing CGI’s operations in the Greater New York Region. Before joining CGI, he served as a Vice President at American Management Systems, Inc., (AMS) where he held various management and consulting positions in both the government and commercial sector business groups. He served as a Director at Stanley, Inc., since August 2010. He is a Vice-Chair of the Public Sector Division of the TechAmerica Board (The Technology Association of America) as well as the Boards of Directors for the Professional Services Council (PSC), the Northern Virginia Technology Council and The Catalogue for Philanthropy—Greater Washington. He was appointed as a Trustee for the Committee for Economic Development. He has been recognized by industry as a market leader, including being named one of Federal Computer Week’s top 100 federal leaders and one of ExecutiveBiz’s “Top 20 People to Watch.” Mr. Schindler holds a Bachelors of Science Degree in Computer Science from Purdue University.

CEO Compensation
  • George's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • George's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the CGI management team in years:

5.3
Average Tenure
62.5
Average Age
  • The average tenure for the CGI management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Serge Godin

TITLE
Founder & Executive Chairman of the Board
COMPENSATION
CA$14M
AGE
70
TENURE
44.3 yrs

Julie Godin

TITLE
Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development
AGE
44
TENURE
0.3 yrs

George Schindler

TITLE
President
COMPENSATION
CA$10M
AGE
56
TENURE
3.5 yrs

André Imbeau

TITLE
Co-Founder & Director
AGE
69
TENURE
44.3 yrs

François Boulanger

TITLE
Executive VP & CFO
COMPENSATION
CA$3M
TENURE
5.5 yrs

Dave Henderson

TITLE
President of United States Operations
COMPENSATION
CA$2M
TENURE
2.4 yrs

Jean-Michel Baticle

TITLE
President of Western & Southern Europe Operations
COMPENSATION
CA$2M

Anne-Marie Poupart

TITLE
Senior VP & Chief Information Officer
TENURE
1.3 yrs

Lorne Gorber

TITLE
Executive Vice-President of Investor & Public Relations
TENURE
5.3 yrs

Benoit Dubé

TITLE
Executive VP of Legal & Economic Affairs and Corporate Secretary
TENURE
9.8 yrs
Board of Directors Tenure

Average tenure and age of the CGI board of directors in years:

8.6
Average Tenure
67.5
Average Age
  • The tenure for the CGI board of directors is about average.
Board of Directors

Julie Godin

TITLE
Co-Chair of the Board and Executive VP of Strategic Planning & Corporate Development
AGE
44
TENURE
0.3 yrs

George Schindler

TITLE
President
COMPENSATION
CA$10M
AGE
56
TENURE
3.5 yrs

André Imbeau

TITLE
Co-Founder & Director
AGE
69
TENURE
44.3 yrs

Paule Doré

TITLE
Independent Director
COMPENSATION
CA$230K
AGE
68
TENURE
25.3 yrs

Serge Godin

TITLE
Founder & Executive Chairman of the Board
COMPENSATION
CA$14M
AGE
70
TENURE
0.3 yrs

Gilles Labbé

TITLE
Independent Director
COMPENSATION
CA$230K
AGE
63
TENURE
10.3 yrs

Timothy Hearn

TITLE
Lead Director
COMPENSATION
CA$260K
AGE
75
TENURE
1.3 yrs

Michael Roach

TITLE
Director
COMPENSATION
CA$210K
AGE
67
TENURE
13.8 yrs

Dick Evans

TITLE
Independent Director
COMPENSATION
CA$310K
AGE
72
TENURE
10.6 yrs

Joakim Westh

TITLE
Independent Director
COMPENSATION
CA$455K
AGE
58
TENURE
6.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by CGI individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
19. Mar 20 Buy Heikki Nikku Individual 16. Mar 20 16. Mar 20 7,500 CA$78.94 CA$582,630
04. Feb 20 Buy Timothy Hearn Individual 03. Feb 20 03. Feb 20 1,000 CA$101.75 CA$101,750
14. Nov 19 Sell Serge Godin Individual 13. Nov 19 13. Nov 19 -21,769 CA$105.40 CA$-2,294,524
09. Aug 19 Buy Alison Reed Individual 06. Aug 19 06. Aug 19 3,000 CA$98.53 CA$295,590
X
Management checks
We assess CGI's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CGI has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GIB.A News

Simply Wall St News

Should CGI Inc. (TSE:GIB.A) Be Your Next Stock Pick?

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … TSX:GIB.A Income Statement, August 21st 2019 Next Steps: For CGI, there are three pertinent factors you should further research: Future Outlook: What are well-informed industry analysts predicting for GIB.A’s future growth? … Take a look at our free research report of analyst consensus for GIB.A’s outlook.

Simply Wall St -

Here's Why CGI (TSE:GIB.A) Can Manage Its Debt Responsibly

We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … During the last three years, CGI produced sturdy free cash flow equating to 69% of its EBIT, about what we'd expect.

Simply Wall St -

Is CGI Inc.'s (TSE:GIB.A) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other large companies. … We think total compensation is more important but we note that the CEO salary is lower, at CA$1.2m. … We took a group of companies with market capitalizations over CA$11b, and calculated the median CEO total compensation to be CA$9.1m.

Simply Wall St -

Is CGI Inc.'s (TSE:GIB.A) 17% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for CGI: 17% = CA$1.2b ÷ CA$7.0b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does CGI Have A Good Return On Equity? … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.

Simply Wall St -

Do You Like CGI Inc. (TSE:GIB.A) At This P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for CGI: P/E of 22.88 = CA$99.66 ÷ CA$4.36 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … And as that P/E ratio drops, the company will look cheap, unless its share price increases. … The Verdict On CGI's P/E Ratio CGI trades on a P/E ratio of 22.9, which is above the CA market average of 14.9.

Simply Wall St -

Introducing CGI (TSE:GIB.A), The Stock That Zoomed 160% In The Last Five Years

There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This EPS growth is slower than the share price growth of 21% per year, over the same period. … TSX:GIB.A Past and Future Earnings, June 27th 2019 We like that insiders have been buying shares in the last twelve months.

Simply Wall St -

Does CGI Inc.'s (TSE:GIB.A) 16% Earnings Growth Reflect The Long-Term Trend?

When CGI Inc.'s (TSE:GIB.A) announced its latest earnings (31 March 2019), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were CGI's average earnings over the past couple of years, and its industry performance. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which GIB.A is growing has accelerated.

Simply Wall St -

A Close Look At CGI Inc.’s (TSE:GIB.A) 18% ROCE

ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CGI: 0.18 = CA$1.8b ÷ (CA$13b - CA$3.1b) (Based on the trailing twelve months to March 2019.) Therefore, CGI has an ROCE of 18%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Here's Why We Think CGI (TSE:GIB.A) Is Well Worth Watching

Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

A Holistic Look At CGI Inc. (TSE:GIB.A)

This indicates that GIB.A has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. … Take a look at our free research report of analyst consensus for GIB.A’s outlook. … The intrinsic value infographic in our free research report helps visualize whether GIB.A is currently mispriced by the market.

Simply Wall St -

GIB.A Company Info

Description

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities. The company also offers application development, management, testing, portfolio management, and modernization services; business consulting; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure services. It serves clients operating in government, financial services, health, utility, communication, oil and gas, manufacturing, retail and consumer service, transportation, and post and logistics sectors. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

Details
Name: CGI Inc.
GIB.A
Exchange: TSX
Founded: 1976
CA$21,893,174,509
268,331,591
Website: http://www.cgi.com
Address: CGI Inc.
1350 René-Lévesque Boulevard West,
15th Floor,
Montreal,
Quebec, H3G 1T4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX GIB.A Class A Shares The Toronto Stock Exchange CA CAD 31. Aug 1988
NYSE GIB Class A Shares New York Stock Exchange US USD 31. Aug 1988
DB CJ5A Class A Shares Deutsche Boerse AG DE EUR 31. Aug 1988
LSE 0A18 Class A Shares London Stock Exchange GB CAD 31. Aug 1988
Number of employees
Current staff
Staff numbers
77,500
CGI employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 01:29
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/01/29
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.