CGI Inc (TSX:GIB.A): A Canadian IT stock to eye

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CGI Inc (TSX:GIB.A): A Canadian IT stock to eye

CGI Inc (TSX:GIB.A): A Canadian IT stock to eye
Image source: © 2022 Kalkine Media®

Highlights

  • CGI Inc is one of the biggest players in the S&P/TSX Capped Information Technology Index
  • The company is said to employ 76,000 staff and has 400 offices in 40 countries
  • The GIB.A stock has rebounded over the past week, up 1.43 per cent

Some experts say that technology stocks might generally be a good indicator of the mood the market is in. The S&P/TSX Capped Information Technology Index has lost 28.53 per cent year-to-date (YTD) and fixed return investments are experiencing a bearish phase, broadly speaking.

That said, CGI Inc is one of the biggest players in the above-mentioned index and has lost 8.55 per cent YTD so it can be argued that it has fared half as bad as the sector. Let’s take a closer look at the stock.

CGI Inc (TSX:GIB.A)

CGI first stood for “Conseillers en gestion et informatique” which roughly translates to management and IT consultants. It went public in 1986.

Today it operates in many countries offering its consulting and systems integration services along with business process solutions. The company is said to employ 76,000 staff and has 400 offices in 40 countries.

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The company has a market cap of C$22 billion. In FY2021, it clocked revenue of C$12.13 billion, up 1.1 per cent year-over-year.

On Monday, March 14, it closed at C$102.55. The GIB.A stock has gained over the past year, up 1.57 per cent and has rebounded over the past week, up 1.43 per cent.

CGI Inc (TSX:GIB.A)

Image source: © 2022 Kalkine Media®

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On February 24, it hit a one-year low of C$99.26. On September 2, it hit a yearly high of C$116.88.

It has an EPS of 5.67 and a P/E ratio of 18.10. Its return on equity is 19.7 per cent.

Bottom line

CGI seems to be expanding. On March 1, it announced it had completed the acquisition of Unico, a firm based in Melbourne, Australia. On March 11, it said it had entered into an agreement to acquire Umanis, a data firm based in France.

Also read: First Quantum Minerals (TSX:FM): A Canadian materials stock to watch

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

 

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