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Capgemini (CGEMY)
OTHER OTC:CGEMY
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Capgemini
(OTC:CGEMY)
Rating:66Neutral
Price Target:―
Capgemini (CGEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.32B
Dividend Yield1.43%
Average Volume (3M)151.29K
Price to Earnings (P/E)16.1
Beta (1Y)0.99
Revenue Growth-1.84%
EPS Growth1.21%
CountryUS
Employees341,118
SectorTechnology
Sector Strength84
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.29
Shares Outstanding856,737,370
10 Day Avg. Volume0
30 Day Avg. Volume151,286
Financial Highlights & Ratios
PEG Ratio7.05
Price to Book (P/B)2.04
Price to Sales (P/S)0.00
P/FCF Ratio8.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 makes money primarily through its service offerings, which are divided into several key areas. The company generates revenue by providing technology and engineering services, which include system integration, application development, and IT infrastructure management. Consulting services contribute to Capgemini's earnings by offering strategic advice and guidance to businesses in digital transformation and operational improvements. Additionally, Capgemini's digital and cloud services, which include cloud migration, cybersecurity, and data analytics, are significant revenue streams. The company also forms strategic partnerships with technology giants like Microsoft, Google, and Amazon to enhance its service offerings and expand its client base, which further contributes to its revenue growth. These diversified revenue streams enable Capgemini to maintain a competitive position in the global IT services market.
Capgemini Earnings Call Summary
Earnings Call Date:Feb 18, 2025
(Q4-2024)
| % Change Since: -10.45%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong resilience in operating margins and commercial momentum, especially in AI and generative AI, offset by revenue declines and challenges in specific sectors and regions.Q4-2024 Updates
Positive Updates
Resilient Operating Margin
Capgemini maintained its operating margin at 13.3% of revenue, stable year-on-year, despite a revenue decline.
Strong Bookings and Commercial Momentum
The company reported solid bookings totaling €23,821 million, representing a robust book-to-bill ratio of 1.08, indicating strong commercial momentum.
Leadership in AI and Generative AI
Capgemini made significant strides in AI and generative AI, with gen AI bookings accounting for around 5% of Q4 bookings and close to 4% for the full year.
Significant ESG Progress
The company reduced its absolute emissions Scope 1, 2, and 3 by 35% compared to 2019, and the share of renewable energy reached 98%.
Improved Growth in Financial Services
Financial Services recorded a visible improvement in its growth rate, marking its return to growth with a 2% increase at constant currency in Q4.
Negative Updates
Revenue Decline
Capgemini's revenues were down 2% year-on-year at constant currency, with an organic growth decline of 2.4% for the full year.
Challenges in Manufacturing Sector
The manufacturing sector experienced strong headwinds, with a growth rate decelerating to -6.1% in Q4.
Noticeable Slowdown in France
France experienced a notable slowdown, with revenues decreasing by 3.5% due to a significant contraction in the manufacturing sector.
Higher Sales and Marketing Expenses
The company saw an increase in selling expenses, impacting the effectiveness of sales investments.
Company Guidance
During the Capgemini 2024 Full Year Results Call, CEO Aiman Ezzat provided guidance for the upcoming fiscal year, highlighting key metrics and anticipated challenges. The company reported revenues of €22,096 million, a 2% decrease year-on-year at constant currency, with a slight improvement in growth rate towards the end of the year, finishing at -1.1% in Q4. Bookings were strong at €23,821 million, reflecting a robust book-to-bill ratio of 1.08. The operating margin was maintained at 13.3% of revenue, showcasing stability despite revenue decline. Organic free cash flow remained solid at €1,961 million. For 2025, Capgemini projected a revenue growth range of -2% to +2% at constant currency, factoring in potential geopolitical and sectorial uncertainties, particularly in manufacturing and Europe. The company aims for a 0 to 20 basis point improvement in operating margin and targets organic free cash flow around €1.9 billion. The strategic focus remains on operational efficiency and growth in high-value services such as cloud, AI, and gen AI, leveraging a trained workforce of 150,000 in gen AI tools.Capgemini Financial Statement Overview
Summary
Capgemini demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The company maintains a stable balance sheet with moderate leverage and efficient equity use. Cash flow generation is robust, supporting financial stability and future growth potential.Income Statement
Capgemini has demonstrated strong revenue growth with a consistent upward trajectory over the past five years, achieving a 2.4% increase from 2022 to 2023. The company maintains healthy profitability metrics with a gross profit margin of 26.85% and a net profit margin of 7.38% for the year 2023. EBIT and EBITDA margins also show robust performance at 10.42% and 14.16% respectively. These figures highlight stable operational efficiency and profitability.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. Capgemini's return on equity stands at 15.90%, showcasing efficient use of shareholder equity to generate profits. The equity ratio is 42.33%, providing a strong equity base relative to total assets, although slightly affected by a notable total debt level.75
Positive
Cash Flow
Capgemini exhibits a strong cash flow position with consistent free cash flow generation, evidenced by a 1.75% growth in free cash flow from 2022 to 2023. The operating cash flow to net income ratio of 1.52 indicates solid cash generation capability relative to net income. The free cash flow to net income ratio is 1.36, further supporting the company's ability to convert earnings into cash.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 22.23B | 22.52B | 22.00B | 18.16B | 15.85B | 14.13B | Gross Profit |
| 5.80B | 6.05B | 5.83B | 4.79B | 4.14B | 3.85B | EBIT |
| 2.49B | 2.35B | 2.39B | 1.84B | 1.50B | 1.43B | EBITDA |
| 2.25B | 3.19B | 3.14B | 2.53B | 2.18B | 2.01B | Net Income Common Stockholders |
| 1.69B | 1.66B | 1.55B | 1.16B | 957.00M | 856.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.38B | 3.70B | 4.19B | 3.51B | 3.17B | 2.67B | Total Assets |
| 9.97B | 24.70B | 25.48B | 24.03B | 21.95B | 18.14B | Total Debt |
| 1.31B | 6.59B | 7.55B | 7.64B | 9.05B | 4.09B | Net Debt |
| -1.06B | 3.06B | 3.75B | 4.51B | 6.21B | 1.63B | Total Liabilities |
| 5.66B | 14.23B | 15.74B | 15.55B | 15.84B | 9.72B | Stockholders Equity |
| 4.31B | 10.45B | 9.73B | 8.47B | 6.10B | 8.42B |
| Cash Flow | Free Cash Flow | ||||
| 2.48B | 2.27B | 2.23B | 2.31B | 1.46B | 1.57B | Operating Cash Flow |
| 2.75B | 2.52B | 2.52B | 2.58B | 1.66B | 1.79B | Investing Cash Flow |
| -455.00M | -383.00M | -659.00M | -678.00M | -1.71B | -868.00M | Financing Cash Flow |
| -2.93B | -2.31B | -1.12B | -1.75B | 562.00M | -468.00M |
Capgemini Technical Analysis
Positive
34.36
Price Trends
31.27
Positive
32.33
Positive
34.37
Negative
Market Momentum
0.63
Positive
64.45
Neutral
97.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEMY, the sentiment is Positive. The current price of 34.36 is above the 20-day moving average (MA) of 33.68, above the 50-day MA of 31.27, and below the 200-day MA of 34.37, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 97.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGEMY.
Capgemini Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $75.74B | 23.86 | 29.00% | 2.37% | 3.85% | -0.38% | |
80 Outperform | $198.86B | 26.21 | 27.26% | 1.80% | 4.10% | 9.78% | |
80 Outperform | $32.52B | 26.28 | 113.19% | ― | 5.99% | 59.74% | |
76 Outperform | $39.57B | 16.90 | 16.61% | 1.52% | 4.09% | 14.05% | |
67 Neutral | $30.35B | 19.45 | 16.62% | 2.13% | -2.83% | 106.18% | |
66 Neutral | $29.32B | 16.14 | 15.23% | 1.43% | -1.84% | 1.21% | |
62 Neutral | $11.80B | 10.31 | -7.45% | 2.91% | 7.43% | -7.78% |
* Technology Sector Average
Performance Comparison
CGEMY
Capgemini
34.36
-6.48
-15.87%
ACN
Accenture
316.62
31.26
10.95%
CTSH
Cognizant
80.47
14.23
21.48%
IT
Gartner
421.53
-14.77
-3.39%
INFY
Infosys
18.29
0.83
4.75%
WIT
Wipro
2.94
0.21
7.69%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.