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

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FR:CAP

Capgemini SE

(LSE:CAP)

Rating:62Neutral
Price Target:
€132.00
▲(5.60% Upside)
Capgemini SE's overall score is influenced primarily by its strong financial performance, which is offset by weak technical indicators. The company's moderate valuation provides some support, but the lack of revenue growth and negative market momentum present challenges.
Positive Factors
Cash Flow
Organic FCF came in at €60m vs cons at €-35m.
Financial Performance
Margins are expected to show an annual improvement, reflecting a positive trend in financial performance.
Growth Prospects
Headlines are better than expected, indicating a positive outlook for Capgemini.
Negative Factors
Competitive Intensity
There are ongoing risks of increased competitive intensity as peers also struggle.
Market Environment
Capgemini is operating in a challenging end market.
Pricing Pressure
Industry pricing pressure is intensifying and creating incremental challenges in managing margins.

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 generates revenue primarily through its consulting and technology services. The company's revenue model is based on a combination of fixed-price contracts, time and materials contracts, and managed services agreements. Key revenue streams include consulting services, which focus on strategic business transformation; technology services, which involve systems integration and application development; and outsourcing services, which provide clients with managed IT services. Significant partnerships with major technology providers, such as Microsoft, Salesforce, and SAP, enhance Capgemini's offerings and contribute to its earnings by enabling access to advanced technologies and solutions, thus driving business for both Capgemini and its partners.

Capgemini SE Financial Statement Overview

Summary
Capgemini SE demonstrates strong financial health with effective profitability and cash flow management. The company maintains a solid equity base but has a notable level of debt, which poses a potential risk. Revenue growth has been relatively slow, indicating potential market saturation or competition.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.10B22.52B22.00B18.16B15.85B
Gross Profit6.05B6.05B5.70B4.67B4.02B
EBITDA3.23B3.19B3.13B2.51B2.16B
Net Income1.67B1.66B1.55B1.16B957.00M
Balance Sheet
Total Assets25.66B24.70B25.48B24.03B21.95B
Cash, Cash Equivalents and Short-Term Investments3.06B3.70B4.19B3.51B3.17B
Total Debt6.08B6.59B7.55B7.64B9.05B
Total Liabilities13.86B14.23B15.74B15.55B15.84B
Stockholders Equity11.78B10.45B9.73B8.47B6.10B
Cash Flow
Free Cash Flow2.21B2.27B2.16B2.19B1.41B
Operating Cash Flow2.53B2.52B2.45B2.46B1.61B
Investing Cash Flow-1.34B-383.00M-659.00M-678.00M-1.71B
Financing Cash Flow-2.02B-2.31B-1.05B-1.62B609.00M

Capgemini SE Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price125.00
Price Trends
50DMA
130.83
Negative
100DMA
137.29
Negative
200DMA
144.54
Negative
Market Momentum
MACD
-2.23
Negative
RSI
49.43
Neutral
STOCH
60.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:CAP, the sentiment is Neutral. The current price of 125 is above the 20-day moving average (MA) of 123.18, below the 50-day MA of 130.83, and below the 200-day MA of 144.54, indicating a neutral trend. The MACD of -2.23 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 60.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:CAP.

Capgemini SE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
€21.37B13.6214.30%2.72%-0.76%-6.99%
61
Neutral
$35.55B8.91-10.55%1.87%8.47%-8.26%
€2.24B11.978.78%1.45%
€797.80M0.4958.08%
€964.63M18.3614.35%3.27%
€3.14B11.2314.39%
€1.16B17.4712.58%0.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:CAP
Capgemini SE
125.00
-51.38
-29.13%
GB:0O1S
ALTEN SA
64.25
-25.55
-28.45%
GB:0DNH
Atos SE
41.61
-10.36
-19.93%
GB:0GX2
Neurones
39.75
-1.46
-3.54%
GB:0NJQ
Sopra Steria
155.00
-16.50
-9.62%
GB:0G1T
Wavestone
54.00
-0.40
-0.74%
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: Aug 02, 2025