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Capgemini SE (FR:CAP)
:CAP

Capgemini SE (CAP) AI Stock Analysis

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Capgemini SE

(LSE:CAP)

Rating:69Neutral
Price Target:
€159.00
▲(9.47%Upside)
Capgemini SE's strong financial performance is the most significant factor, supported by effective profitability and cash flow management. The technical analysis is neutral, with indicators pointing to a lack of strong momentum. Valuation is reasonable, providing some potential for growth. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.
Positive Factors
Bookings and Revenue
The book-to-bill ratio was 122%, indicating a minor improvement in the deal signing environment.
Financial Performance
Margins are expected to show an annual improvement, reflecting a positive trend in financial performance.
Negative Factors
Competitive Landscape
There are ongoing risks of increased competitive intensity as peers also struggle.
Market Conditions
Industry pricing pressure is intensifying and creating incremental challenges in managing margins.
Market Environment
Capgemini reported a constant currency growth of -0.4%, indicating a challenging market environment.

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 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
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
Negative
Last Price145.25
Price Trends
50DMA
145.64
Negative
100DMA
144.51
Positive
200DMA
154.10
Negative
Market Momentum
MACD
-0.43
Positive
RSI
48.44
Neutral
STOCH
79.20
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 145.25 is below the 20-day moving average (MA) of 147.11, below the 50-day MA of 145.64, and below the 200-day MA of 154.10, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRCAP
69
Neutral
€24.83B14.7915.03%2.02%-1.89%1.15%
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
€2.66B14.228.78%1.96%
€586.30M0.0158.08%
€1.10B20.8314.35%2.88%
€4.10B16.2416.26%2.30%
€1.46B16.0212.58%0.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:CAP
Capgemini SE
145.25
-40.03
-21.61%
GB:0O1S
ALTEN SA
76.35
-30.67
-28.66%
GB:0DNH
Atos SE
33.33
-18.35
-35.51%
GB:0GX2
Neurones
45.10
1.80
4.16%
GB:0NJQ
Sopra Steria
202.40
10.67
5.57%
GB:0G1T
Wavestone
49.50
-6.70
-11.92%
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 05, 2025