CGI (GIB.A) posts $346M Q4 profit. An under-the-radar tech stock to buy?

Be the First to Comment Read

CGI (GIB.A) posts $346M Q4 profit. An under-the-radar tech stock to buy?

CGI announces fourth quarter and fiscal 2021 results
Image source: © Kiankhoon | Megapixl.com

Highlights 

  • The CGI stock expanded 26.7 per cent in the last 12 months and beat the Toronto Stock Exchange 300 Composite Index.
  • Established in 1976, CGI emerged as a leading multinational IT company and a business consulting services firm in the world.
  • In the fourth quarter financial report, CGI mentioned that it had cash of C$ 1.7 billion on hand as on September 30, 2021.

The Montreal-based information technology company CGI Inc. (TSX:GIB.A) announced strong fourth quarter and fiscal 2021 results. Established in 1976, CGI emerged as a leading multinational IT company and a business consulting services firm in the world.

At market close on Tuesday, November 9, CGI's stock had surged by 1.3 per cent during the trading session. Let's look at the performance and find out if it is worth exploring:

CGI Inc.'s (TSX:GIB.A) financial performance


In the fourth quarter of this year, CGI's revenue was C$ 3.01 billion, reflecting a year-over-year (YoY) increase of 2.8 per cent. Meanwhile, in the fiscal 2021, the revenue was C$ 12.13 billion, up by 1.1 per cent YoY.

CGI Q4 results and stock performance

© 2021 Kalkine Media Inc.

In 2021, the adjusted Earnings Before Interest and Taxes (EBIT) was C$ 1.95 billion compared to C$ 1.86 billion in 2020. The EBIT margin was 16.1 per cent, up from 15.3 per cent in the same period of 2020.

Also Read: Nuvei's (TSX:NVEI) net income increases by $105.9M in Q3. Buy alert?

The cash provided by operating activities was C$ 526.9 million in Q4 2021, up by C$ 34.9 million in the fourth quarter of last year. In addition, the net earnings in Q4 2021 were C$ 345.9 million compared to C$ 251.9 million in Q4 2020.

Bottom line

In the fourth quarter financial report, CGI mentioned that it had cash of C$ 1.7 billion on hand as on September 30, 2021. If a fully available revolving credit facility is included, the company claims to have C$ 3.2 billion available liquidity to pursue build and buy profitable growth strategy.

The CGI stock expanded 26.7 per cent in the last 12 months and beat the Toronto Stock Exchange 300 Composite Index as it declined by three per cent during the same period.

Also Read: Shopify's (TSX:SHOP) Q3 profit up 6 times. An undervalued stock to buy?

On September 2, 2021, the stock had clocked a 52-week high of C$ 116.88 per share and at market close on November 9, the price was down by 1.8 per cent in comparison.

If the stock gets investors’ attention due to solid Q4 results, the CGI stock could set a new high in the next few days.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK