CGI Inc.

L'entreprise

One of the world's largest independent IT and business consulting firms, ~94,000 employees ('members') across 40+ countries.

Three revenue streams: managed services / outsourcing (recurring, largest and stickiest), systems integration & consulting, and proprietary IP/software solutions.

Roughly balanced between government/public-sector and commercial clients (financial services, telecom, health, manufacturing).

Reports in Canadian dollars; grows via a well-known 'build-and-buy' M&A playbook, integrating targets onto a common operating model.

Les avantages concurrentiels

Deep, multi-year managed-services contracts and a large backlog (~C$31B order backlog) create high switching costs and recurring revenue.

Proximity operating model and metro-market density give scale plus local client intimacy that pure-offshore rivals lack.

Long track record of acquiring and margin-accreting bolt-ons, a repeatable engine most peers cannot execute as consistently.

Aperçu financier

Période déclarée la plus récente : FY2025 (ended Sep 30 2025); cash-flow TTM to Jun 30 2026. Les chiffres reflètent la date de révision — confirmez les chiffres actuels avant d'agir.

Rendement du flux de trésorerie disponible et croissance durable

Rendement du flux de trésorerie disponible : ≈11.8%TTM free cash flow C$2.48B ÷ market cap C$20.98B ≈ 11.8%.

Operating cash flow +17.7% and FCF +18.7% on a TTM basis — conversion outpaced revenue growth of ~8%.

Asset-light model (capex ~0.7% of revenue) means most operating cash drops to free cash flow.

FCF funds the acquisition pipeline, buybacks, and the young dividend without stretching the balance sheet.

Voir le classement complet du rendement du flux de trésorerie disponible →

Valorisation et points à surveiller

FCF yield ~11.8% on TTM free cash flow versus market cap — rich cash generation for a services compounder.

Trailing P/E ~12.8x and forward ~10.7x sit well below CGI's historical average, partly reflecting a ~29% market-cap decline over the past year.

Analyst average target ~C$121 vs ~C$105 price implies mid-teens upside, but treat targets as opinion, not fact.

Dividende

Initiated a dividend only in late 2024; currently ~C$0.68/share annualized for a slim ~0.7% yield. CGI's real shareholder return is buybacks and reinvestment into M&A, not the payout.

Risques et scénario baissier

• Large-deal timing and government IT budgets make bookings lumpy; a slow signing quarter can dent growth optics.
• Growth depends on continuous acquisitions — integration missteps or paying up for targets would erode the compounding story.
• FX translation (large US/European book) swings CAD-reported results.
• Generative-AI could compress traditional staff-augmentation and systems-integration billing over time.

Faits récents

FY2025 revenue reached C$15.91B, up 8.4%, with continued bookings and a record backlog around C$31B.

Rolled up several acquisitions across Europe and North America (e.g. BJSS, Novatec, Dakitec, Apside) to add scale and vertical depth.

TTM free cash flow climbed to ~C$2.48B (+18.7%), and the company sustained aggressive share repurchases.

Stock de-rated over the past year (market cap down ~29%), leaving valuation near multi-year lows.

Verdict

CGI screens as a high-quality, cash-generative IT compounder trading at a below-average multiple with a double-digit FCF yield — the market appears to be pricing in AI-disruption and M&A-dependency risk more than a deterioration in current results. The bull case rests on continued disciplined acquisitions and backlog conversion; the bear case is that services demand structurally softens. CoinCompass is a publisher, not an adviser — verify the latest filing and size any position to your own risk tolerance.