Fact based stock research
CGI (TSX:GIB.A)
CA12532H1047
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
CGI stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), CGI (IT Consulting & oth. Services, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of CGI are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives), are safely financed (Safety Rank of 78, which means low debt burdens), but show below-average growth (Growth Rank of 22). ...read more
RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on CGI's financial characteristics. As the company CGI's key financial metrics exhibit good value (Obermatt Value Rank of 82) but low growth (Obermatt Growth Rank of 22) while being safely financed (Obermatt Safety Rank of 78), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 82% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | IT Consulting & oth. Services |
| Index | Renewables Users, TSX Composite |
| Size class | X-Large |
23-Jan-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: CGI
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
71 |
|
54 |
|
82 |
|
| GROWTH | ||||||||
| GROWTH | 36 |
|
9 |
|
34 |
|
22 |
|
| SAFETY | ||||||||
| SAFETY | 28 |
|
34 |
|
63 |
|
78 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
95 |
|
76 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
74 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), CGI (IT Consulting & oth. Services, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of CGI are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives), are safely financed (Safety Rank of 78, which means low debt burdens), but show below-average growth (Growth Rank of 22). ...read more
RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on CGI's financial characteristics. As the company CGI's key financial metrics exhibit good value (Obermatt Value Rank of 82) but low growth (Obermatt Growth Rank of 22) while being safely financed (Obermatt Safety Rank of 78), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 82% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
71 |
|
54 |
|
82 |
|
| GROWTH | ||||||||
| GROWTH | 36 |
|
9 |
|
34 |
|
22 |
|
| SAFETY | ||||||||
| SAFETY | 28 |
|
34 |
|
63 |
|
78 |
|
| COMBINED | ||||||||
| COMBINED | 22 |
|
19 |
|
55 |
|
63 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 82 (better than 82% compared with alternatives) for 2025, CGI shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for CGI. Price-to-Sales is 62 which means that the stock price compared with what market professionals expect for future sales is lower than for 62% of comparable companies, indicating a good value for CGI's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 67% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 70. Compared with other companies in the same industry, dividend yields of CGI are expected to be higher than for 79% of all competitors (a Dividend Yield rank of 79). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 82, is a buy recommendation based on CGI's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in CGI based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 66 |
|
75 |
|
69 |
|
62 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 79 |
|
76 |
|
70 |
|
67 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 38 |
|
66 |
|
55 |
|
70 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
79 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
71 |
|
54 |
|
82 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 22 (better than 22% compared with alternatives), CGI shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for CGI. Sales Growth has a below market rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors. The same is valid for Capital Growth, with a rank of 34, and Profit Growth, with a rank of 39. Currently, professionals expect the company to grow its profits less than 61% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 57, which means that the stock returns have recently been above 57% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 22, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for CGI, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 18 |
|
9 |
|
32 |
|
14 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 43 |
|
30 |
|
45 |
|
39 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
15 |
|
7 |
|
34 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 64 |
|
73 |
|
55 |
|
57 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 36 |
|
9 |
|
34 |
|
22 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 78 (better than 78% compared with alternatives) for 2025, the company CGI has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of CGI is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for CGI. Liquidity is at 92, meaning the company generates more profit to service its debt than 92% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 43, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 57% of its competitors. Leverage is also high at a rank of 48, which means that the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 78 (better than 78% compared with alternatives), CGI has a financing structure that is significantly safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 26 |
|
41 |
|
50 |
|
48 |
|
| REFINANCING | ||||||||
| REFINANCING | 38 |
|
17 |
|
27 |
|
43 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 58 |
|
79 |
|
92 |
|
92 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 28 |
|
34 |
|
63 |
|
78 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
41 |
|
34 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
99 |
|
100 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
92 |
|
85 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
95 |
|
76 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for CGI from January 23, 2025.
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