# Cgi (GIB-A.TO)

Canonical: https://gigainvestors.com/s/GIB-A.TO

Analysis as of: 2026-10-16T07:35:08.825Z. Financial observations: FY1996–FY2025.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: CAD 106.19 per share; close as of 2026-10-15.

Estimated value: low CAD 113.92 per share, central CAD 141.53 per share, high CAD 164.91 per share. Buy at or below the central value CAD 141.53 per share. Valuation as of 2026-10-16T07:35:08.825Z; scenarios are not confidence intervals.

Expected annual return: 12.4% at the stated quote. About 12.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: 0.18×

- FY2018: 0.19×

- FY2019: 0.19×

- FY2020: 0.20×

- FY2021: 0.20×

- FY2022: 0.20×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.21×

### moat: pass

- ROIC, median of available years: >100%

- ROIC, second-lowest year: >100%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 20.2%

- Recent gross margin (lower of latest and 3-year median): 20.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 13.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: >100%

- FY2019: >100%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 8.2B

- Net income, five-year total: CAD 7.8B

- Return on incremental invested capital: 130.7%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.9 pp

- Working capital / revenue, final three-year average: 18.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.85×

- FY2022: 1.03×

- FY2023: 1.04×

- FY2024: 1.16×

- FY2025: 1.15×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 158.6% vs 121.2%

- Per-share earnings: 3.46 to 7.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.7%

- Ordinary dilution, 5-year annual growth: -3.5%

- Market cap gain: CAD 8.1B

- Cumulative retained earnings: CAD 3.6B

- Diluted shares, 10-year annual growth: -3.7%

- Diluted shares, 5-year annual growth: -3.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.0%

- Per-share value change: CAD 3.96

- Per-share value, starting three-year median: CAD 3.46

- Per-share value, ending three-year median: CAD 7.42

- Buybacks concentrated in cheaper years (correlation): 0.23

- Average buyback yield: 4.3%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: CAD 5.4B

- Cumulative net income, 10 years: CAD 13B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 3.46

- FY2017: CAD 3.55

- FY2018: CAD 4.05

- FY2019: CAD 4.63

- FY2020: CAD 4.29

- FY2021: CAD 5.55

- FY2022: CAD 6.12

- FY2023: CAD 6.97

- FY2024: CAD 7.42

- FY2025: CAD 7.62

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.19×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.23×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.3%

- FY2017: -2.8%

- FY2018: -3.0%

- FY2019: -2.9%

- FY2020: -5.3%

- FY2021: -5.0%

- FY2022: -2.6%

- FY2023: -3.0%

- FY2024: -3.1%

- FY2025: -3.0%

## Holders

## Price story

Down 38% since Jan 2025 · "CGI’s (GIB) AI Buying Spree Meets A Rising Debt Load" (finance.yahoo.com, Sep 2026) · sales +8.4%

Story as of 2026-10-16T10:00:03.820Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.5% a year for ten years

### Sales · FY2024–2025

sales +8.4%; source https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm; observed 2025-12-17.

- FY2016: CAD 11B 

- FY2017: CAD 11B 

- FY2018: CAD 12B 

- FY2019: CAD 12B 

- FY2020: CAD 12B 

- FY2021: CAD 12B 

- FY2022: CAD 13B 

- FY2023: CAD 14B 

- FY2024: CAD 15B 

- FY2025: CAD 16B 

### Gross margin · FY2025

gross margin 20.7%; source https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm; observed 2025-12-17.

- FY2016: 18.6% 

- FY2017: 18.3% 

- FY2018: 18.7% 

- FY2019: 18.8% 

- FY2020: 20.4% 

- FY2021: 20.6% 

- FY2022: 20.2% 

- FY2023: 20.1% 

- FY2024: 20.5% 

- FY2025: 20.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are CAD 15.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm (filed 2025-12-17); FY2025: revenue 15912673000; grossProfit 3289489000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GIB-A.TO: CGI Inc. provides information technology and business process services in Western and Southern Europe, the United States, Canada, Scandinavia, Northwest and Central-East Europe, the United Kingdom, Australia, Germany, Finland, Poland, Baltics, and the Asia Pacific. It offers end-to-end services and solutions, including business and strategic IT consulting; systems integration, such as data integration, AI and automation integration, cloud integration, Internet of Things, enterprise application integration, application programming interface integration, and legacy system modernization; managed IT and business process; and application services comprising application management, DevSecOps, application modernization and rationalization, and quality engineering and assurance. The company also provides infrastructure services, which include legacy infrastructure modernization, cloud and hybrid infrastructure management, IT service management, FinOps-enabled cloud management, cyber resilience and compliance, site reliability engineering and AIOps, and infrastructure-as-code; and intellectual property business solutions. It serves banking and capital markets, communications and media, energy and utilities, government, health, insurance, life sciences, manufacturing, retail and consumer services, space, transportation, and logistics industries. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

### Why customers stay

Margins ranged from 20.1% to 20.7% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: grossProfit / revenue = 20.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: grossProfit / revenue = 20.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm (filed 2025-12-17); FY2025: grossProfit / revenue = 20.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); 10-year return on capital observations [[2016,1.6330864789944741],[2017,1.5786216432445865],[2018,1.5863241404485304],[2019,1.3695350392526213],[2020,1.0736117011457222],[2021,1.3510333436190172],[2022,1.0738768528423819],[2023,1.212120317739758],[2024,1.2208233912406112],[2025,1.1327053191612264]]; median 1.2859283674298143. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 20% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm (filed 2025-12-17); Gross margin observations: [[2021,0.20598215867954536],[2022,0.2022969875111145],[2023,0.20139077359551663]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back CAD 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2016: growth capex 6349000; upkeep 260130000; owner earnings 1068716000. Growth capex / owner earnings = 0.005940773788359115.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2017: growth capex 0; upkeep 218934000; owner earnings 1046416000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2018: growth capex 7713000; upkeep 230988000; owner earnings 1141402000. Growth capex / owner earnings = 0.006757478960085929.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2019: growth capex 22996913.51832211; upkeep 245040086.4816779; owner earnings 1254931913.518322. Growth capex / owner earnings = 0.01832522806265087.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2020: growth capex 2429617.2719067633; upkeep 240160382.72809324; owner earnings 927734617.2719067. Growth capex / owner earnings = 0.0026188709860275427.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2021: growth capex 0; upkeep 235740000; owner earnings 1163480000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2022: growth capex 0; upkeep 293757000; owner earnings 1505166800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: growth capex 0; upkeep 306969000; owner earnings 1699735400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: growth capex 0; upkeep 109733000; owner earnings 1965328000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm (filed 2025-12-17); FY2025: growth capex 0; upkeep 116611000; owner earnings 1907099200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,826385000],[2020,1472797000],[2021,1885262000],[2022,0],[2023,0],[2024,0],[2025,135052000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm (filed 2025-12-17); FY2025: cash repurchases 1287853000 CAD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GIB-A.TO SharesStats.PercentInsiders = 0.398 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.5% yearly over ten years; actual growth was 9.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Ten-year compound average after fade. Initial solved rate -0.020314339363520013. Price 106.19; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.3953559409179404 → FY2025 8.761661661247766. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 63.71 per share

- 2016-11: CAD 63.63 per share

- 2016-12: CAD 64.44 per share

- 2017-01: CAD 62.57 per share

- 2017-02: CAD 61.06 per share

- 2017-03: CAD 63.72 per share

- 2017-04: CAD 65.88 per share

- 2017-05: CAD 66.97 per share

- 2017-06: CAD 66.26 per share

- 2017-07: CAD 65.83 per share

- 2017-08: CAD 63.53 per share

- 2017-09: CAD 64.70 per share

- 2017-10: CAD 68.55 per share

- 2017-11: CAD 68.09 per share

- 2017-12: CAD 68.30 per share

- 2018-01: CAD 70.40 per share

- 2018-02: CAD 75.00 per share

- 2018-03: CAD 74.30 per share

- 2018-04: CAD 74.40 per share

- 2018-05: CAD 79.71 per share

- 2018-06: CAD 83.31 per share

- 2018-07: CAD 83.98 per share

- 2018-08: CAD 85.69 per share

- 2018-09: CAD 83.28 per share

- 2018-10: CAD 81.30 per share

- 2018-11: CAD 85.00 per share

- 2018-12: CAD 83.50 per share

- 2019-01: CAD 86.87 per share

- 2019-02: CAD 88.23 per share

- 2019-03: CAD 91.87 per share

- 2019-04: CAD 96.43 per share

- 2019-05: CAD 98.52 per share

- 2019-06: CAD 100.68 per share

- 2019-07: CAD 101.58 per share

- 2019-08: CAD 104.42 per share

- 2019-09: CAD 104.76 per share

- 2019-10: CAD 102.38 per share

- 2019-11: CAD 110.07 per share

- 2019-12: CAD 108.67 per share

- 2020-01: CAD 101.33 per share

- 2020-02: CAD 94.31 per share

- 2020-03: CAD 76.19 per share

- 2020-04: CAD 88.77 per share

- 2020-05: CAD 87.98 per share

- 2020-06: CAD 85.53 per share

- 2020-07: CAD 95.67 per share

- 2020-08: CAD 91.62 per share

- 2020-09: CAD 90.38 per share

- 2020-10: CAD 82.67 per share

- 2020-11: CAD 95.91 per share

- 2020-12: CAD 100.99 per share

- 2021-01: CAD 102.50 per share

- 2021-02: CAD 95.00 per share

- 2021-03: CAD 104.68 per share

- 2021-04: CAD 108.75 per share

- 2021-05: CAD 107.32 per share

- 2021-06: CAD 112.39 per share

- 2021-07: CAD 113.49 per share

- 2021-08: CAD 112.76 per share

- 2021-09: CAD 107.59 per share

- 2021-10: CAD 110.56 per share

- 2021-11: CAD 106.72 per share

- 2021-12: CAD 111.85 per share

- 2022-01: CAD 108.53 per share

- 2022-02: CAD 103.92 per share

- 2022-03: CAD 99.59 per share

- 2022-04: CAD 102.44 per share

- 2022-05: CAD 108.07 per share

- 2022-06: CAD 102.54 per share

- 2022-07: CAD 109.80 per share

- 2022-08: CAD 104.00 per share

- 2022-09: CAD 103.99 per share

- 2022-10: CAD 109.74 per share

- 2022-11: CAD 117.44 per share

- 2022-12: CAD 116.71 per share

- 2023-01: CAD 114.04 per share

- 2023-02: CAD 122.34 per share

- 2023-03: CAD 130.25 per share

- 2023-04: CAD 137.51 per share

- 2023-05: CAD 140.60 per share

- 2023-06: CAD 139.70 per share

- 2023-07: CAD 134.00 per share

- 2023-08: CAD 140.90 per share

- 2023-09: CAD 133.88 per share

- 2023-10: CAD 133.88 per share

- 2023-11: CAD 137.97 per share

- 2023-12: CAD 141.95 per share

- 2024-01: CAD 150.56 per share

- 2024-02: CAD 155.82 per share

- 2024-03: CAD 149.44 per share

- 2024-04: CAD 139.49 per share

- 2024-05: CAD 134.59 per share

- 2024-06: CAD 136.55 per share

- 2024-07: CAD 157.43 per share

- 2024-08: CAD 151.83 per share

- 2024-09: CAD 155.62 per share

- 2024-10: CAD 154.24 per share

- 2024-11: CAD 158.48 per share

- 2024-12: CAD 157.28 per share

- 2025-01: CAD 171.33 per share

- 2025-02: CAD 149.97 per share

- 2025-03: CAD 143.66 per share

- 2025-04: CAD 146.18 per share

- 2025-05: CAD 147.53 per share

- 2025-06: CAD 143.01 per share

- 2025-07: CAD 133.58 per share

- 2025-08: CAD 133.36 per share

- 2025-09: CAD 123.96 per share

- 2025-10: CAD 122.06 per share

- 2025-11: CAD 124.47 per share

- 2025-12: CAD 126.78 per share

- 2026-01: CAD 116.70 per share

- 2026-02: CAD 99.76 per share

- 2026-03: CAD 101.70 per share

- 2026-04: CAD 88.91 per share

- 2026-05: CAD 96.28 per share

- 2026-06: CAD 91.67 per share

- 2026-07: CAD 102.61 per share

- 2026-08: CAD 104.36 per share

- 2026-09: CAD 96.75 per share

- 2026-10: CAD 102.70 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 37.82 per share, central CAD 47.81 per share, high CAD 55.64 per share

- FY2017: low CAD 43.46 per share, central CAD 55.08 per share, high CAD 64.33 per share

- FY2018: low CAD 49.28 per share, central CAD 62.69 per share, high CAD 73.23 per share

- FY2019: low CAD 53.81 per share, central CAD 68.30 per share, high CAD 79.78 per share

- FY2020: low CAD 65.31 per share, central CAD 86.27 per share, high CAD 100.11 per share

- FY2021: low CAD 65.79 per share, central CAD 85.18 per share, high CAD 98.69 per share

- FY2022: low CAD 73.48 per share, central CAD 100.87 per share, high CAD 117.81 per share

- FY2023: low CAD 81.89 per share, central CAD 101.88 per share, high CAD 118.04 per share

- FY2024: low CAD 94.85 per share, central CAD 117.04 per share, high CAD 135.73 per share

- FY2025: low CAD 106.06 per share, central CAD 131.49 per share, high CAD 153.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:53.512Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1061574/000119312525322911/d88305d40f.htm); period 2025-09-30, filed 2025-12-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.