CGI GIB
CGI Inc. is a global IT services consultancy offering software solutions, systems integration, and consulting to businesses and governments, with a business model based on recurring contracts and long-term relationships. CGI presents a very attractive valuation (P/E 11.91, FCF yield 11.01%) with 22.5% earnings growth, although incremental debt from AI acquisitions and the rising rate environment add some pressure on financial health.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
CGI Inc. is a global IT services consultancy offering software solutions, systems integration, and consulting to businesses and governments, with a business model based on recurring contracts and long-term relationships. CGI presents a very attractive valuation (P/E 11.91, FCF yield 11.01%) with 22.5% earnings growth, although incremental debt from AI acquisitions and the rising rate environment add some pressure on financial health.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 6.3 |
| Valuation | 8.7 |
| Growth | 6.3 |
| Dividend | 3.2 |
| Momentum | 3.9 |
| Risk & Context | 8.9 |
OVERALL SCORE: 6.8/10
Context and risks
The increase in debt from AI acquisitions, with a Net Debt/EBITDA ratio of 1.31, increases sensitivity to interest rates. The rise in 10-year Treasury yields (5.17%) makes financing this incremental debt more expensive.
News considered in the analysis
- CGI’s (GIB) AI Buying Spree Meets A Rising Debt Load — La adquisición de activos de IA incrementa la deuda, elevando el apalancamiento y el riesgo financiero en un entorno de tipos al alza.
- CGI (TSX:GIB.A) Is Up 13.6% After Q3 EPS Jump and $413M Buyback - What's Changed — El salto del BPA y el programa de recompra de 413M USD refuerzan la confianza en la generación de beneficios y el retorno al accionista.
- CGI Group Q3 Earnings Call Highlights — Los aspectos destacados de la llamada de resultados del tercer trimestre proporcionan información adicional sobre la estrategia y el desempeño.
- CGI Inc (GIB) Q3 2026 Earnings Call Highlights: Strong EPS Growth and Strategic AI Investments — El fuerte crecimiento del BPA y las inversiones estratégicas en IA son señales positivas para el crecimiento futuro.
- CGI Group (GIB) Q3 Earnings Match Estimates — Los resultados en línea con las estimaciones no aportan información nueva relevante.
Verdict: Hold, while monitoring the evolution of leverage and the integration of AI acquisitions.
Main risk: Increased debt to finance AI acquisitions could raise leverage and sensitivity to interest rates, although the current ratio of 1.31x EBITDA is manageable.
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