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

Follow us on Google News:
 CGI (GIB.A) posts $346M Q4 profit. An under-the-radar tech stock to buy?
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

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

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