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Capgemini SE (FR:CAP)
:CAP
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Capgemini SE (CAP) AI Stock Analysis

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FR:CAP

Capgemini SE

(LSE:CAP)

Rating:70Outperform
Price Target:
€154.00
▲(14.07%Upside)
Capgemini SE's overall stock score reflects strong financial performance and reasonable valuation, though technical indicators reveal a bearish trend. The company's modest revenue growth and high debt levels in a potentially rising interest rate environment are important considerations for investors.
Positive Factors
Acquisition
The acquisition of WNS is being positioned as a play on AI.
Financial Performance
Margins are expected to show an annual improvement, reflecting a positive trend in financial performance.
Negative Factors
Investor Perception
There is doubt that the acquisition of WNS will materially change investor perception.
Market Conditions
Capgemini is operating in a challenging end market.

Capgemini SE (CAP) vs. iShares MSCI France ETF (EWQ)

Capgemini SE 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 diversified portfolio of services that cater to the needs of various industry verticals. The company's revenue model is centered around the provision of consulting services, technology services, and outsourcing services. Consulting services involve advising clients on business strategy, digital transformation, and operational efficiency. Technology services include the development, integration, and management of IT systems and solutions. Outsourcing services entail the management of client operations and processes to improve efficiency and reduce costs. Key revenue streams include long-term contracts with large enterprises and government bodies, project-based consulting engagements, and managed services agreements. Capgemini also forms strategic partnerships with leading technology providers such as IBM, Microsoft, and SAP, which enhance its service offerings and drive additional revenue.

Capgemini SE Financial Statement Overview

Summary
Capgemini SE demonstrates strong profitability with stable margins and efficient cash generation. The balance sheet is solid but carries a notable level of debt, which could be a risk in a rising interest rate environment. Revenue growth has been modest, suggesting potential market saturation.
Income Statement
78
Positive
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
74
Positive
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
82
Very Positive
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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Capgemini SE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price135.00
Price Trends
50DMA
144.45
Negative
100DMA
141.10
Negative
200DMA
150.38
Negative
Market Momentum
MACD
-2.74
Positive
RSI
38.40
Neutral
STOCH
24.39
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 135 is below the 20-day moving average (MA) of 139.60, below the 50-day MA of 144.45, and below the 200-day MA of 150.38, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 24.39 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
€22.92B13.6515.03%2.54%-1.89%1.15%
50
Neutral
C$3.13B2.46-63.57%2.58%4.49%-6.00%
€2.61B13.998.78%1.24%
€546.32M0.0158.08%
€1.06B20.3714.35%2.95%
€3.86B13.7814.39%2.44%
€1.50B12.0712.58%0.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:CAP
Capgemini SE
135.00
-45.64
-25.26%
GB:0O1S
ALTEN SA
75.10
-23.45
-23.80%
GB:0DNH
Atos SE
28.75
-46.13
-61.61%
GB:0GX2
Neurones
44.10
3.18
7.77%
GB:0NJQ
Sopra Steria
190.20
23.07
13.80%
GB:0G1T
Wavestone
49.50
-3.82
-7.16%
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.Date of analysis: Jul 12, 2025