GIBCGI Inc.

$70.14-24% 1Y

Is the business good?

Mixed

The checks split: nothing decisive, though earnings fully cash-backed (1.3×).

1 good, 1 neutral, 2 without data
Profits arrive as cash1.30×derived · Sep 30, 2024

Operating profit is fully backed by cash.

Where ROE comes from10% ROAderived

A balanced mix of margins, efficiency, and leverage. ROE 18% = margin × turnover × leverage.

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is GIB?

CGI Inc. earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

17%

Return on invested capital · cost of capital 9.0% · 8.0 points above what the capital costs: growth creates value

Operating margin
16%

Operating margin · Information Technology Services median 8.0% · fiscal year to FY2024

Cash conversion
1.30×

Cash conversion · 1.29× a year ago · operating cash flow covers the operating profit after tax

Share count, year on year
−2.5%

Share count, year on year · bought back, each share owns more of the company

Operating margin by fiscal year
YearOperating margin
FY201914%
FY202012%
FY202115%
FY202215%
FY202315%
FY202416%
Details›
Operating marginfiscal year to FY2024
16%
Net marginfiscal year to FY2024
12%
Free cash flow margin
14%
Revenue, trailing twelve months
$14.7B
Free cash flow, trailing twelve months
$2.10B
Net income, trailing twelve months
$1.69B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
17%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.