Capgemini SE (CAP) AI Stock Analysis

• Market Cap: €24.83B
• Dividend Yield: 2.02%
• Average Volume (3M): 381.23K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.27
• Revenue Growth: -1.89%
• EPS Growth: 1.15%
• Country: FR
• Employees: 341,118
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 6.18
• Shares Outstanding: 171,347,470
• 10 Day Avg. Volume: 304,717
• 30 Day Avg. Volume: 381,226
• PEG Ratio: 0.53
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €174.71
• Price Target Upside: 20.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: €159.00 ▲(9.47%Upside)

Capgemini SE's strong financial performance is the most significant factor, supported by effective profitability and cash flow management. The technical analysis is neutral, with indicators pointing to a lack of strong momentum. Valuation is reasonable, providing some potential for growth. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Bookings and Revenue

The book-to-bill ratio was 122%, indicating a minor improvement in the deal signing environment.

Financial Performance

Margins are expected to show an annual improvement, reflecting a positive trend in financial performance.

Negative Factors

Competitive Landscape

There are ongoing risks of increased competitive intensity as peers also struggle.

Market Conditions

Industry pricing pressure is intensifying and creating incremental challenges in managing margins.

Market Environment

Capgemini reported a constant currency growth of -0.4%, indicating a challenging market environment.

Capgemini SE Business Overview & Revenue Model

Company Description

Capgemini 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 Money

Capgemini makes money primarily through its service offerings in consulting, technology, and outsourcing. The company generates revenue by providing strategic consulting services that help organizations improve their performance and by delivering technology solutions that optimize business operations. Key revenue streams include digital transformation projects, IT infrastructure management, and application development and maintenance. Capgemini also benefits from strategic partnerships with major technology firms like Microsoft, SAP, and Salesforce, which enhance its service offerings and expand its market reach. The company's earnings are supported by long-term contracts with large enterprises and public sector clients, ensuring stable, recurring revenue.

Capgemini SE Financial Statement Overview

Summary

Capgemini SE demonstrates strong financial health with solid profitability and cash flow management. The balance sheet is robust but carries a notable level of debt, which could be a risk if interest rates rise. Despite these strengths, the company faces modest revenue growth, indicating potential market saturation.

Income Statement

Capgemini SE demonstrates strong profitability with a consistent gross profit margin and stable EBIT margin. However, revenue growth has been modest in recent years, which might indicate market saturation or increased competition. The company has maintained a solid net profit margin, reflecting effective cost management.

Balance Sheet

The company maintains a healthy equity ratio, indicating a solid foundation of stockholders' equity relative to total assets. However, the debt-to-equity ratio is relatively high, which could pose risks in a rising interest rate environment. Return on equity is favorable, suggesting effective utilization of shareholder funds.

Cash Flow

Capgemini SE's cash flow generation is robust, with a strong free cash flow to net income ratio indicating effective conversion of earnings into cash. The operating cash flow to net income ratio is stable, showcasing efficient operational cash management. Free cash flow growth has been positive, supporting strategic investments and potential debt reduction.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.10B	22.52B	22.00B	18.16B	15.85B
Gross Profit	6.05B	6.05B	5.70B	4.67B	4.02B
EBITDA	3.23B	3.19B	3.13B	2.51B	2.16B
Net Income	1.67B	1.66B	1.55B	1.16B	957.00M
Balance Sheet
Total Assets	25.66B	24.70B	25.48B	24.03B	21.95B
Cash, Cash Equivalents and Short-Term Investments	3.06B	3.70B	4.19B	3.51B	3.17B
Total Debt	6.08B	6.59B	7.55B	7.64B	9.05B
Total Liabilities	13.86B	14.23B	15.74B	15.55B	15.84B
Stockholders Equity	11.78B	10.45B	9.73B	8.47B	6.10B
Cash Flow
Free Cash Flow	2.21B	2.27B	2.16B	2.19B	1.41B
Operating Cash Flow	2.53B	2.52B	2.45B	2.46B	1.61B
Investing Cash Flow	-1.34B	-383.00M	-659.00M	-678.00M	-1.71B
Financing Cash Flow	-2.02B	-2.31B	-1.05B	-1.62B	609.00M

Capgemini SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:CAP, the sentiment is Negative. The current price of 145.25 is below the 20-day moving average (MA) of 147.11, below the 50-day MA of 145.64, and below the 200-day MA of 154.10, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:CAP.

Capgemini SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAP	69 Neutral	€24.83B	14.79	15.03%	2.02%	-1.89%	1.15%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
0O1S		€2.66B	14.22	8.78%	1.96%	―	―
0DNH		€586.30M	0.01	58.08%	―	―	―
0GX2		€1.10B	20.83	14.35%	2.88%	―	―
0NJQ		€4.10B	16.24	16.26%	2.30%	―	―
0G1T		€1.46B	16.02	12.58%	0.77%	―	―