Wild options for CGI investors

CGI Working Capital is projected to increase significantly based on the last few years of reporting. The past year's Working Capital was at 1.47 Billion. The current year Enterprise Value over EBIT is expected to grow to 18.95, whereas Average Assets are forecasted to decline to about 14.4 B. While some of us are becoming more passionate about technology space, it makes sense to go over CGI Inc in greater detail. We will evaluate why recent CGI price moves suggest a bounce in February. This post is to show some fundamental factors affecting CGI's products and services. I will also drop some light on how it may impact the investing outlook for the entity in February.
Published over a year ago
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Reviewed by Michael Smolkin

Over 68.0% of CGI shares are owned by institutional investors. Institutional ownership of CGI Inc refers to the amount of CGI Inc equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of CGI, including its current ownership diagnostics.
The performance of CGI Inc in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence CGI's stock prices. When investing in CGI, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, CGI Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as CGI carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is CGI's Liquidity

CGI financial leverage refers to using borrowed capital as a funding source to finance CGI Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CGI financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to CGI's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of CGI's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between CGI's total debt and its cash.

What do experts say about CGI?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Breaking down the case for CGI

CGI Inc retains a total of 230.37 Million outstanding shares. Over half of CGI Inc outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Thereupon, these institutions are subject to different rules and regulation than regular investors in CGI. Please watch out for any change in the institutional holdings of CGI Inc as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Ownership Breakdown

Retail Investors
31.51%
Institutions
67.84%
Retail Investors31.51
Insiders0.65
Institutions67.84

Another setback for CGI investors

Current Jensen Alpha is up to -0.04. Price may slip again. CGI Inc has relatively low volatility with skewness of 0.12 and kurtosis of 1.67. However, we advise all investors to independently investigate CGI Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On CGI Inc

Whereas other companies within the information technology services industry are still a little expensive, even after the recent corrections, CGI may offer a potential longer-term growth to investors. The inconsistency in the assessment between current CGI valuation and our trade advice on CGI is due to the recent market swings and your selection of investing horizon. 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.

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Editorial Staff

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 Ellen Johnson do not own shares of CGI Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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