GIB CGI stock Story

GIB -  USA Stock  

USD 89.57  1.21  1.33%

Today's article will go over CGI. What exactly are CGI shareholders getting in December? On the 11th of November 2020 the company is traded for 69.61. CGI Inc stock is not elastic to its hype. The average elasticity to hype of competition is 0.02. The immediate return on the next news is forecasted to be very small, whereas the daily expected return is currently at 0.01%. The volatility of relative hype elasticity to CGI is about 108.12%. The volatility of related hype on CGI is about 108.12% with expected price after next announcement by competition of 69.63 Considering the 30-days investment horizon, the next forecasted press release will be in about 6 days.
Published over six months ago
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Should I drop my CGI (NYSE:GIB) position?
The firm shows a Beta (market volatility) of -0.1358, which signifies not very significant fluctuations relative to the market. Let's try to break down what CGI's beta means in this case. As returns on the market increase, returns on owning CGI are expected to decrease at a much lower rate. During the bear market, CGI is likely to outperform the market. Although it is extremely important to respect CGI Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach into foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining CGI Inc technical indicators, you can right now evaluate if the expected return of 0.0098% will be sustainable into the future. CGI Inc at this time shows a risk of 1.81%. Please confirm CGI Inc standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if CGI Inc will be following its price patterns.
The successful prediction of CGI stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as CGI Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of CGI based on CGI hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to CGI's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CGI's related companies.

Use Technical Analysis to project GIB CGI expected Price

CGI technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of CGI technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of CGI trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How GIB CGI utilizes its cash?

To perform a cash flow analysis of CGI, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CGI is receiving and how much cash it distributes out in a given period. The CGI cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
CGI Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.23 Billion

Breaking down the case for CGI

The current indifference towards the small price fluctuations of CGI Inc may raise some interest from investors. The stock closed today at a share price of 69.61 on very low momentum in trading volume. The company executives did not add any value to CGI investors in October. However, most investors can still diversify their portfolios with CGI Inc to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.81. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2017 2019 2020 (projected)
Book Value per Share23.328.3424.58
Asset Turnover0.991.141.12

Deferred Revenue Breakdown

CGI Deferred Revenue is increasing over the years with stable fluctuation. Ongoing Deferred Revenue is projected to grow to about 461.1 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. CGI Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 456.98 Million
2013457.06 Million
2014416.33 Million
2015390.37 Million
2016409.33 Million
2017399.55 Million
2018397.37 Million
2019456.98 Million
2020461.12 Million

Over 3 percent rise for CGI. What does it mean for investors?

The skewness is down to 0.51 as of today. CGI Inc exhibits very low volatility with skewness of 0.51 and kurtosis of 1.72. However, we advise investors to further study CGI Inc technical indicators to make sure all market info is available and is reliable.

The Current Takeaway on CGI Investment

When is the right time to buy or sell CGI Inc? Buying stocks such as CGI isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to CGI.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of CGI Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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