CGI Story

GIB -- USA Stock

USD 74.63 1.10 1.45%

Macroaxis Story

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 three weeks ago

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Wild options for CGI investors

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.

How important is CGI's Liquidity

CGI financial leverage refers to using borrowed capital as a funding source to finance CGI Group 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. Please check the breakdown between CGI's total debt and its cash.

How 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

What did CGI file with SEC?

The SEC filings are financial statements or other formal documents of CGI Group that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to CGI shareholders may or may not be submitted as SEC does not always require it.

	16th of February 2021 Unclassified Corporate Event	View
	28th of January 2021 Other Events	View

What is driving CGI Investor Appetite?

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 Investors	31.51
	Insiders	0.65
	Institutions	67.84

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.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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