Capgemini SE (CAP) AI Stock Analysis

• Market Cap: €26.38B
• Dividend Yield: 2.2%
• Average Volume (3M): 412.50K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.28
• Revenue Growth: -1.89%
• EPS Growth: 1.15%
• Country: FR
• Employees: 341,118
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 9.80
• Shares Outstanding: 171,347,470
• 10 Day Avg. Volume: 384,214
• 30 Day Avg. Volume: 412,500
• 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: €176.63
• Price Target Upside: 15.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: €164.00 ▲(6.81%Upside)

Capgemini SE is well-positioned with strong financial performance, particularly in cash flow management, despite modest revenue growth. Technical indicators suggest moderate bullish momentum, while valuation metrics indicate the stock is reasonably priced with an attractive dividend yield. These factors combine to give an overall score of 73, reflecting solid but not exceptional prospects.

Positive Factors

Earnings

The company's results were slightly better than expected, showing some resilience.

Financial Performance

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

Negative Factors

Competitive Risks

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

Market Environment

Capgemini is operating in a challenging end market.

Capgemini SE Business Overview & Revenue Model

Company Description

Capgemini SE is a global leader in consulting, technology services, and digital transformation. Headquartered in Paris, France, the company operates in over 50 countries and serves a diverse range of industries including automotive, consumer products, retail, financial services, healthcare, and telecommunications. Capgemini offers a wide array of services, including IT consulting, technology implementation, and managed services, with a strong emphasis on innovation and sustainability.

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
	EBIT
2.36B	2.35B	2.73B	2.22B	1.77B
	EBITDA
3.23B	3.19B	3.13B	2.51B	2.16B
	Net Income Common Stockholders
1.67B	1.66B	1.55B	1.16B	957.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.06B	3.70B	4.19B	3.51B	3.17B
	Total Assets
25.66B	24.70B	25.48B	24.03B	21.95B
	Total Debt
6.08B	6.59B	7.55B	7.64B	9.05B
	Net Debt
3.29B	3.06B	3.36B	4.13B	5.87B
	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: Positive
• Last Price: 153.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:CAP, the sentiment is Positive. The current price of 153.55 is above the 20-day moving average (MA) of 148.66, above the 50-day MA of 139.11, and below the 200-day MA of 157.31, indicating a neutral trend. The MACD of 2.75 indicates Negative momentum. The RSI at 66.50 is Neutral, neither overbought nor oversold. The STOCH value of 94.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:CAP.

Capgemini SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAVE	79 Outperform	€1.40B	18.32	12.58%	0.67%	54.27%	-3.69%
SOP	75 Outperform	€4.07B	16.11	16.26%	2.32%	-0.49%	39.02%
CAP	73 Outperform	€26.38B	15.72	15.03%	2.20%	-1.89%	1.15%
ATE	68 Neutral	€2.65B	14.16	8.78%	1.97%	1.83%	-21.09%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
ATO	34 Underperform	€715.26M	0.01	58.08%	―	-10.44%	49.00%