CGI Group Inc Net Income surged on 13.7% in 2015 and EBITDA Margin increased slightly on 2.0 pp from 16.1% to 18.0%
11.11.2015 • About CGI Group Inc (
$GIB.A) • By InTwits
CGI Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CGI Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 2.0%.
- CAPEX is quite volatile: 122 in FY2015, 181 in FY2014, 142 in FY2013, 64.6 in FY2012, 65.0 in FY2011
- The company has highly profitable business model: ROIC is at 18.0%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CGI Group Inc ($GIB.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,224 | 4,772 | 10,085 | 10,500 | 10,287 | -2.0% |
| Gross Profit | 533 | 546 | 1,072 | 1,370 | 1,468 | 7.2% |
| EBITDA | 753 | 522 | 1,170 | 1,687 | 1,856 | 10.0% |
| Net Income | 438 | 132 | 456 | 859 | 978 | 13.7% |
Balance Sheet
|
|---|
| Cash | 136 | 113 | 106 | 536 | 305 | -43.0% |
| Short Term Debt | 972 | 52 | 534 | 80 | 231 | 187.3% |
| Long Term Debt | 110 | 3,196 | 2,332 | 2,599 | 1,896 | -27.1% |
Cash flow
|
|---|
| Capex | 65 | 65 | 142 | 181 | 122 | -32.5% |
Ratios
|
|---|
| Revenue growth | 13.2% | 13.0% | 111.3% | 4.1% | -2.0% | |
| EBITDA growth | 6.0% | -30.6% | 124.1% | 44.2% | 10.0% | |
| Gross Margin | 12.6% | 11.4% | 10.6% | 13.0% | 14.3% | 1.2% |
| EBITDA Margin | 17.8% | 10.9% | 11.6% | 16.1% | 18.0% | 2.0% |
| Net Income Margin | 10.4% | 2.8% | 4.5% | 8.2% | 9.5% | 1.3% |
| CAPEX, % of revenue | 1.5% | 1.4% | 1.4% | 1.7% | 1.2% | -0.5% |
| ROIC | 14.7% | 5.7% | 10.9% | 17.1% | 18.0% | 0.9% |
| ROE | 19.5% | 4.6% | 12.2% | 19.0% | 17.7% | -1.3% |
| Net Debt/EBITDA | 1.3x | 6.0x | 2.4x | 1.3x | 1.0x | -0.3x |
Revenue and profitability
CGI Group Inc's Revenue decreased on 2.0% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 2.0 pp from 16.1% to 18.0% in FY2015.
Gross Margin increased slightly on 1.2 pp from 13.0% to 14.3% in FY2015.
Net Income marign increased slightly on 1.3 pp from 8.2% to 9.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
CGI Group Inc's CAPEX/Revenue was 1.2% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (17.96%) and ROE (17.66%). ROIC increased slightly on 0.86 pp from 17.1% to 18.0% in FY2015. ROE decreased slightly on 1.3 pp from 19.0% to 17.7% in FY2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 1.3x to 1.0x in FY2015. Debt dropped on 20.6% in FY2015 while cash dropped on 43.0% in FY2015.
Appendix 1: Peers in Technology
Below you can find CGI Group Inc benchmarking vs. other companies in Technology industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | 25.9% | -4.5% | 151.6% | 81.4% | |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 10.2% | 3.7% | 11.4% | 15.2% | 11.5% |
|---|
| CGI Group Inc ($GIB.A) | | 13.0% | 111.3% | 4.1% | -2.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 50.9% | 59.2% | 53.2% | 52.2% | 48.1% |
|---|
| CGI Group Inc ($GIB.A) | 12.6% | 11.4% | 10.6% | 13.0% | 14.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| |
|---|
| Median (33 companies) | 8.5% | 8.3% | 5.5% | 7.0% | 17.1% |
|---|
| CGI Group Inc ($GIB.A) | 17.8% | 10.9% | 11.6% | 16.1% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.6% | 1.5% | 1.2% | 1.8% |
|---|
| CGI Group Inc ($GIB.A) | 1.5% | 1.4% | 1.4% | 1.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| |
|---|
| Median (33 companies) | 4.7% | 2.9% | -4.8% | 0.5% | 7.5% |
|---|
| CGI Group Inc ($GIB.A) | 14.7% | 5.7% | 10.9% | 17.1% | 18.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| SMART Technologies Inc ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (21 companies) | -0.5x | -0.4x | -0.6x | -1.3x | -0.0x |
|---|
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | 1.0x |
