Capgemini SE (FR:CAP)
:CAP
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Capgemini SE
(CAP)
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Rating:64Neutral
Price Target:
€103.00
▼(-0.19% Downside)
Action:DowngradedDate: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
Consistent cash generation
Stable operating cash flow and recurring free cash flow since 2021 give Capgemini durable liquidity to fund investments, dividends, and strategic initiatives. High FCF conversion (~88–90% of net income) supports resilience against cyclical slowdowns and funds long-term transformation efforts.
Negative Factors
Rising financial leverage
A sharp re-leveraging to ~€10.3B of debt and debt/equity near 0.89 reduces financial flexibility. Higher leverage raises interest and refinancing risk, constrains funding optionality for M&A or investments, and increases sensitivity to margin or cash-flow shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Stable operating cash flow and recurring free cash flow since 2021 give Capgemini durable liquidity to fund investments, dividends, and strategic initiatives. High FCF conversion (~88–90% of net income) supports resilience against cyclical slowdowns and funds long-term transformation efforts.
Read all positive factors
Capgemini SE (CAP) vs. iShares MSCI France ETF (EWQ)
Market Cap
€17.50B
Dividend Yield2.35%
Average Volume (3M)457.24K
Price to Earnings (P/E)15.0
Beta (1Y)1.13
Revenue Growth-0.76%
EPS Growth-6.99%
CountryFR
Employees341,118
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)6.98
Shares Outstanding169,928,670
10 Day Avg. Volume403,860
30 Day Avg. Volume457,238
Financial Highlights & Ratios
PEG Ratio-3.99
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
€148.86Price Target Upside44.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)12.77
Revenue Forecast (FY)€23.92B
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 str...
How the Company Makes Money
Capgemini makes money primarily by selling professional services and managed services to enterprise and public-sector clients. Its revenue model is largely fee-for-service and contract-based: (1) Consulting and transformation work is billed throug...
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 | 2.98B | 6.05B | 6.05B | 5.70B | 4.67B |
| EBITDA | 2.98B | 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 | 10.31B | 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
Neutral
103.20
Price Trends
107.71
Negative
124.05
Negative
126.19
Negative
Market Momentum
-2.12
Negative
49.42
Neutral
75.06
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 103.2 is above the 20-day moving average (MA) of 101.71, below the 50-day MA of 107.71, and below the 200-day MA of 126.19, indicating a neutral trend. The MACD of -2.12 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.06 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €1.18B | 9.75 | 12.87% | 0.84% | 7.00% | 20.56% | |
72 Outperform | €884.35M | 20.10 | 14.08% | 3.07% | 7.39% | 4.58% | |
67 Neutral | €2.54B | 10.15 | 14.39% | 3.03% | -4.12% | 43.37% | |
64 Neutral | €17.50B | 15.05 | 10.95% | 2.35% | -0.76% | -6.99% | |
57 Neutral | €1.88B | 23.95 | 6.98% | 2.08% | -0.23% | -37.70% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
41 Neutral | €671.89M | -0.69 | 319.82% | ― | -14.60% | ― |
* General Sector Average
FR:CAP
Capgemini SE
103.20
-19.23
-15.71%
FR:ATE
ALTEN SA
53.85
-21.28
-28.33%
FR:ATO
Atos SE
34.02
-0.58
-1.68%
FR:NRO
Neurones
36.35
-7.79
-17.66%
FR:SOP
Sopra Steria
125.10
-33.83
-21.29%
FR:WAVE
Wavestone
47.60
4.75
11.09%
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.