Education
About Us
Working with TipRanks
Follow Us
Capgemini (CGEMY)
OTHER OTC:CGEMY
Top Page
Capgemini
(OTC:CGEMY)
Select Model
Select Model
Rating:64Neutral
Price Target:
$30.00
▲(6.12% Upside)
Capgemini's overall stock score reflects its stable financial performance and reasonable valuation. However, technical analysis indicates potential bearish trends, and the earnings call highlighted challenges such as pricing pressure and restructuring costs. Despite these issues, the company maintains strong bookings and strategic wins in key sectors.
Capgemini (CGEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.13B
Dividend Yield2.68%
Average Volume (3M)30.33K
Price to Earnings (P/E)14.2
Beta (1Y)0.97
Revenue Growth-0.20%
EPS Growth-6.50%
CountryUS
Employees341,118
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.38
Shares Outstanding856,737,370
10 Day Avg. Volume12,255
30 Day Avg. Volume30,329
Financial Highlights & Ratios
PEG Ratio17.22
Price to Book (P/B)2.27
Price to Sales (P/S)1.21
P/FCF Ratio12.07
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit5.71
Enterprise Value/Ebitda10.83
Forecast
1Y Price Target
$30.00Price Target Upside6.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
Capgemini Business Overview & Revenue Model
Company DescriptionCapgemini SE provides consulting, digital transformation, technology, and engineering services primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers strategy and transformation services, including strategy, technology, data science, and creative design to support various clients within the digital economy. It also provides applications and technology services that helps the clients to develop, modernize, extend, and secure their IT and digital environment using the latest technologies, as well as offers local technology services in cloud, cybersecurity, quality assurance, testing, and new technology fields. In addition, the company offers business process outsourcing and transactional services, as well as installation and maintenance services for its clients' IT infrastructures in data centers or in the cloud. It serves various industries, including consumer goods and retail; energy and utilities; banking, capital markets, and insurance; manufacturing and life sciences; public sector; telecommunications, media, and technology; and services. Capgemini SE has a strategic partnership with CONA Services LLC to develop digital solutions for the consumer products industry and retail customers. The company was founded in 1967 and is headquartered in Paris, France.
How the Company Makes MoneyCapgemini generates revenue through a diversified portfolio of services that cater to the digital transformation needs of its clients. The company earns money primarily from consulting services, where it provides strategic advice and guidance to businesses on technology adoption and transformation. IT services form another major revenue stream, where Capgemini offers system integration, application development, and maintenance services. Additionally, managed services contribute significantly to its earnings, involving the outsourcing of IT infrastructure and operations management. Business process outsourcing (BPO) also plays a crucial role, where the company manages various business functions for its clients. Key factors contributing to Capgemini's earnings include its global reach, strong industry expertise, and strategic partnerships with leading technology firms like Microsoft, IBM, and SAP, which enhance its service offerings and competitive positioning in the market.
Capgemini Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with positive developments in revenue growth, bookings, and strategic wins in key sectors and regions. However, these were counterbalanced by declines in net profit, manufacturing sector weakness, and challenges in Europe, alongside increased restructuring costs and pricing pressure.Q2-2025 Updates
Positive Updates
Positive Revenue Growth in Q2
Capgemini returned to positive constant currency growth in Q2 2025 at plus 0.7% year-on-year, with H1 revenue reaching EUR 1.107 billion, up 0.2% year-on-year.
Strong Bookings and Solid Commercial Momentum
Bookings totaled EUR 11.993 billion in H1 2025, representing a 2.1% year-on-year increase, with a book-to-bill ratio of 1.08.
Regional Growth Highlights
Growth rates in the U.K. and Ireland, North America, Asia Pacific, and Latin America accelerated, particularly driven by financial services and TMT sectors.
High-Value Service Offering and Strategic Wins
Capgemini secured significant contracts in cloud services, aerospace, and finance transformation, showcasing strong traction for their high-value service offering.
Strong Demand for Cloud, Data, and AI
Capgemini experienced strong demand for cloud, data, and AI services, with Gen AI and Agentic AI contributing to over 7% of Q2 bookings.
Negative Updates
Decline in Net Profit and Basic EPS
Net profit group share decreased to EUR 724 million compared with EUR 835 million in H1 last year, and basic EPS was down 13% year-on-year.
Decline in Manufacturing Sector
The manufacturing sector remained weak in Q2 at minus 4% year-on-year.
Revenue Decline in France and Rest of Europe
Revenues in France and the rest of Europe declined by minus 5% and minus 2.3%, respectively.
Headcount Fluctuations and Increased Restructuring Costs
Total headcount increased by 4% year-on-year, with restructuring costs higher in H1 2025 at EUR 136 million compared to EUR 53 million in H1 2024.
Challenging Pricing Environment
The competitive market and client expectations for cost savings are putting pressure on gross margins.
Company Guidance
During the H1 2025 results call, Capgemini's CEO Aiman Ezzat highlighted several key metrics that reflect the company's performance and outlook. Capgemini reported a slight year-on-year revenue growth of 0.2% for H1 2025, reaching EUR 11.107 billion, and returned to positive constant currency growth in Q2 at 0.7% year-on-year. Bookings for the period totaled EUR 11.993 billion, representing a 2.1% increase year-on-year, with a solid book-to-bill ratio of 1.08. The operating margin remained stable at 12.4% of revenues, equivalent to EUR 1.377 billion. Despite a challenging economic environment, Capgemini maintained a normalized EPS of EUR 6, up 2% year-on-year, and generated an organic free cash flow of EUR 60 million. The company expects constant currency revenue growth for the full year to range between minus 1% and plus 1%, with M&A contributing around 1 point to growth. The operating margin target is set at 13.3% to 13.5%, and the organic free cash flow objective remains at approximately EUR 1.9 billion.Capgemini Financial Statement Overview
Summary
Capgemini demonstrates stable profitability with consistent margins and a strong equity position. However, limited growth in free cash flow slightly tempers the overall financial performance.Income Statement
Capgemini demonstrates stable profitability with a consistent gross profit margin of around 27% and a net profit margin of approximately 7.5% over the years. The revenue growth has been steady, with a notable increase from 2020 to 2021 by 14.6%, although the growth rate has slowed in recent years. The EBIT and EBITDA margins are strong, reflecting efficient operations.75
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio, improving from 1.48 in 2020 to 0.52 in 2024, indicating a stronger equity position. The return on equity has been robust, reaching 14.2% in 2024, showing effective management of shareholder funds. The equity ratio has improved, reflecting a healthy balance sheet despite the industry’s capital intensity.70
Positive
Cash Flow
Capgemini's cash flow statements reveal consistent free cash flow generation, with a free cash flow to net income ratio exceeding 100% over the years, indicating strong cash profitability. Operating cash flow to net income ratio also supports efficient cash generation from operations, although free cash flow growth has been minimal, suggesting limited expansion in cash generation.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.07B | 22.10B | 22.52B | 22.00B | 18.16B | 15.85B |
| Gross Profit | 6.01B | 6.05B | 6.05B | 5.83B | 4.79B | 4.14B |
| EBITDA | 3.17B | 3.23B | 3.19B | 3.14B | 2.53B | 2.18B |
| Net Income | 1.56B | 1.67B | 1.66B | 1.55B | 1.16B | 957.00M |
Balance Sheet | ||||||
| Total Assets | 24.38B | 25.66B | 24.70B | 25.48B | 24.03B | 21.95B |
| Cash, Cash Equivalents and Short-Term Investments | 2.11B | 3.06B | 3.70B | 4.19B | 3.51B | 3.17B |
| Total Debt | 6.07B | 6.08B | 6.59B | 7.55B | 7.64B | 9.05B |
| Total Liabilities | 13.39B | 13.86B | 14.23B | 15.74B | 15.55B | 15.84B |
| Stockholders Equity | 10.97B | 11.78B | 10.45B | 9.73B | 8.47B | 6.10B |
Cash Flow | ||||||
| Free Cash Flow | 2.13B | 2.21B | 2.27B | 2.23B | 2.31B | 1.46B |
| Operating Cash Flow | 2.44B | 2.53B | 2.52B | 2.52B | 2.58B | 1.66B |
| Investing Cash Flow | -1.14B | -1.34B | -383.00M | -659.00M | -678.00M | -1.71B |
| Financing Cash Flow | -1.63B | -2.02B | -2.31B | -1.12B | -1.75B | 562.00M |
Capgemini Technical Analysis
Negative
28.27
Price Trends
28.87
Negative
31.07
Negative
31.57
Negative
Market Momentum
-0.12
Positive
43.20
Neutral
43.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEMY, the sentiment is Negative. The current price of 28.27 is below the 20-day moving average (MA) of 28.89, below the 50-day MA of 28.87, and below the 200-day MA of 31.57, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGEMY.
Capgemini Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $68.16B | 21.20 | 30.46% | 3.03% | 4.52% | -0.22% | |
74 Outperform | $157.57B | 20.82 | 25.82% | 2.40% | 7.36% | 6.18% | |
74 Outperform | $33.41B | 13.89 | 16.69% | 1.79% | 6.34% | 12.16% | |
73 Outperform | $28.75B | 19.80 | 16.50% | 3.04% | -1.95% | 35.65% | |
68 Neutral | $8.35B | 21.54 | 11.36% | ― | 9.73% | -0.29% | |
64 Neutral | $24.13B | 14.22 | 13.84% | 2.68% | -0.20% | -6.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CGEMY
Capgemini
28.27
-10.99
-27.99%
ACN
Accenture
252.04
-103.95
-29.20%
CTSH
Cognizant
68.61
-4.74
-6.46%
EPAM
Epam Systems
150.53
-42.24
-21.91%
INFY
Infosys
17.06
-5.11
-23.05%
WIT
Wipro
2.72
-0.31
-10.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.