CGI Inc. Common Stock (GIB)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $1.9 billion in annual free cash flow (12.0% yield on market cap)
• Solid return on equity of 16.8% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.45, providing financial flexibility
• FairStock composite score of 70/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 94,000 employees providing operational scale

AI Analysis

CGI Inc. Common Stock is a mid-cap technology company valued at $15.6 billion. The business generates $16.2 billion in annual revenue with a 2.7% net margin and $1.9 billion in free cash flow. From a quality standpoint, CGI shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is attractively valued at 13.3x earnings, with a modest 4% margin of safety vs Graham Number. Growth dynamics show revenue growing at 7.7% and profit growth of 0.8%. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates CGI's consistent 17% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $1.9 billion in annual free cash flow (12.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer