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Capgemini SE
(CAP)
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Rating:64Neutral
Price Target:
€96.00
▲(6.81% Upside)
Action:Downgraded
Date:02/28/26
The score is driven primarily by healthy financial performance (notably strong cash generation) but is held back by 2025 margin compression and higher leverage. Technical indicators are decisively weak and reduce the score further, while a low P/E and attractive dividend yield provide meaningful valuation support.
Positive Factors
Cash generation
Consistent operating cash flow and strong free cash flow conversion provide durable internal funding for reinvestment, dividend support and selective M&A. High conversion (FCF covering ~88–90% of net income) cushions the business through demand cycles and supports long-term liquidity and capital allocation.
Negative Factors
Margin compression
A material drop in gross and operating margins erodes core profitability and long-term cash generation. If driven by structural cost mix changes or pricing pressure, weaker margins reduce reinvestment capacity, raise break-even requirements on new deals and increase execution risk for sustained earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and strong free cash flow conversion provide durable internal funding for reinvestment, dividend support and selective M&A. High conversion (FCF covering ~88–90% of net income) cushions the business through demand cycles and supports long-term liquidity and capital allocation.
Read all positive factors
Capgemini SE (CAP) vs. iShares MSCI France ETF (EWQ)
Market Cap
€17.29B
Dividend Yield3.32%
Average Volume (3M)457.24K
Price to Earnings (P/E)12.6
Beta (1Y)1.21
Revenue Growth6.23%
EPS Growth-11.48%
CountryFR
Employees423,405
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.32
Shares Outstanding169,928,670
10 Day Avg. Volume403,860
30 Day Avg. Volume457,238
Financial Highlights & Ratios
PEG Ratio-4.00
Price to Book (P/B)2.07
Price to Sales (P/S)1.07
P/FCF Ratio11.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€137.83Price Target Upside53.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)12.33
Revenue Forecast (FY)€24.24B
Capgemini SE Business Overview & Revenue Model
Company Description
Capgemini SE is a global leader offering expertise in consulting, digital transformation, technology solutions, and engineering services across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Its extensive service port...
How the Company Makes Money
Capgemini primarily makes money by delivering professional services and managed services to enterprise and public-sector clients under contracted engagements. (1) Consulting and transformation services: Revenue is generated from advisory and deliv...
Capgemini SE Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
58
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.46B | 22.10B | 22.52B | 22.00B | 18.16B |
| Gross Profit | 5.65B | 6.05B | 6.05B | 5.70B | 4.67B |
| EBITDA | 3.25B | 3.23B | 3.19B | 3.13B | 2.51B |
| Net Income | 1.60B | 1.67B | 1.66B | 1.55B | 1.16B |
Balance Sheet | |||||
| Total Assets | 29.06B | 25.66B | 24.70B | 25.48B | 24.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.03B | 3.06B | 3.70B | 4.19B | 3.51B |
| Total Debt | 9.46B | 6.08B | 6.59B | 7.55B | 7.64B |
| Total Liabilities | 17.39B | 13.86B | 14.23B | 15.74B | 15.55B |
| Stockholders Equity | 11.65B | 11.78B | 10.45B | 9.73B | 8.47B |
Cash Flow | |||||
| Free Cash Flow | 2.18B | 2.21B | 2.27B | 2.16B | 2.19B |
| Operating Cash Flow | 2.47B | 2.53B | 2.52B | 2.45B | 2.46B |
| Investing Cash Flow | -4.02B | -1.34B | -383.00M | -659.00M | -678.00M |
| Financing Cash Flow | 1.82B | -2.02B | -2.31B | -1.05B | -1.62B |
Capgemini SE Technical Analysis
Positive
89.88
Price Trends
94.70
Positive
97.00
Positive
111.08
Negative
Market Momentum
-1.31
Positive
46.72
Neutral
26.77
Neutral
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 89.88 is below the 20-day moving average (MA) of 93.36, below the 50-day MA of 94.70, and below the 200-day MA of 111.08, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:CAP.
Capgemini SE Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | €3.70B | 12.02 | 14.63% | 3.42% | 1.62% | 12.95% | |
74 Outperform | €741.81M | 9.70 | 12.19% | 1.18% | 1.13% | 8.32% | |
70 Outperform | €2.65B | 24.54 | 4.84% | 2.40% | -1.07% | -42.78% | |
69 Neutral | €935.44M | 17.83 | 13.51% | 3.67% | 5.78% | -1.04% | |
64 Neutral | €17.29B | 12.58 | 10.95% | 3.78% | 6.23% | -11.48% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
41 Neutral | €616.20M | -0.44 | 319.82% | ― | -14.39% | -173.10% |
* General Sector Average
FR:CAP
Capgemini SE
102.50
-17.54
-14.61%
FR:ATE
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75.10
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FR:ATO
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31.96
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FR:NRO
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38.15
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FR:SOP
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FR:WAVE
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Capgemini SE Corporate Events
Capgemini Steps Up Share Buybacks Across European Markets
Jul 22, 2026
Capgemini disclosed a series of share buyback transactions carried out between July 13 and July 17, 2026 on multiple European markets, including Euronext Paris and other trading venues. The purchases covered tens of thousands of shares at weighted...
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.