CGI is one of the most interesting stocks in the Canadian market for the technology and computer sectors.
How much can you make with CGI stock?
Get up-to-date and precise information on CGI stock with its current price, dividend yield, analysis and our opinion.
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Want to buy shares in CGI: Our key take-aways
Stock Exchange: TSX
- Stock index: S&P/TSX 60
- Dividend 2021: $0
- Dividend forecast 2022: $0
- Performance over 1 year: +8.29%.
Should I buy CGI stock?
CGI is one of the attractive growth stocks in the Canadian technology and IT sector.
Although the company does not pay any dividends to its shareholders, the stock has gained more than 70% of its value over the last 5 years, and seems to offer an interesting future upside potential according to the analyst consensus.
It is also possible that the company may decide to change its payout policy once it has achieved its growth targets, by paying a dividend to its shareholders.
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How can I buy shares in CGI ?
To buy CGI on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add CGI to your stock portfolio.
How much are CGI shares?
See price chart below to follow CGI stock price in real time.
Ready to invest in CGI? Shop for through Qtrade.
Why CGI shares could go up:
Currently, there are several arguments that support a likely rise in CGI's share price, including
- Favourable positioning: CGI is currently one of the largest IT service providers in the world, which gives it greater leverage with its suppliers and clients.
- A strong international presence: CGI is also strategically positioned around the world with a presence in 43 countries, which allows it to increase its revenue streams.
- Numerous strategic acquisitions: CGI has implemented a policy of strategic acquisitions in order to significantly increase the number of its clients and thus increase its future growth.
- Technology partnerships: The company also relies heavily on its ability to innovate, notably by setting up technology partnerships with other companies.
- A growing market: The virtualization market has experienced strong growth over the past few years, which should enable CGI to increase its revenue in the long-term.
Why CGI shares could go down:
While there are many indications that CGI Group's stock has a chance to perform well in the stock market, there are also indications that the stock is headed for a decline. Here are the main ones:
- Operational problems: CGI's frequent management and policy changes sometimes lead to operational problems that can hinder the company's growth.
- Intense competition: The industry in which CGI currently operates is highly competitive with other major players who have been in the market for a long time.
- Threat of new entrants: Another threat that CGI Group faces is the arrival of new entrants with a lower cost value proposition.
- Exposure to foreign exchange rates: Finally, CGI's business and profitability are heavily influenced by foreign exchange rates, which can often be unfavourable to CGI.
Can I buy CGI stock online?
Yes! You can buy CGI shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my CGI shares?
It is only possible to sell CGI shares if you hold these shares in your portfolio. In this case, you can place a cash order from your brokerage platform to sell them.
Traditional Canadian savings products do not allow you to short these shares, other than in a margin account.
However, you can also take a short position in CGI shares through derivatives such as options or CFDs.
What investment vehicles in Canada can hold CGI stock?
CGI shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
The most traditional way to buy CGI stock is to place a buy order on the stock to add to your stock portfolio.
But you can also invest in a basket of stocks that includes CGI stock by investing in an equity ETF or ETF.
CGI share price history over 10 years:
CGI dividends and payment dates
Currently, CGI Group does not pay any dividends to its shareholders and has not done so since its listing on the stock market.
However, it is possible that the company will decide to change its payout policy in the future and pay its shareholders.
The company explains that this absence of dividend takes into account its need to reinvest its profits in its operations, with numerous investment projects.
Nevertheless, it indicates that it will evaluate, in the future and on an annual basis, the relevance of paying or not a dividend to its shareholders.
What is the dividend yield for CGI over the last 10 years?
The yield on CGI shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about CGI stock:
A critical analysis of CGI stock:
Fundamental analysis of CGI's share price gives us various interesting signals as to the possible evolution of this stock. Here are the current indicators:
- Strong fundamentals: CGI has a mix of growth, profitability, debt and visibility that is better than 70% of companies in this sector.
- High margins: CGI currently has high margins and appears to have strong profitability.
- Good Valuation: With its strong positive cash flow, CGI Group offers an attractive valuation.
- Consistent forecasts: Analysts' forecasts for CGI's business development are relatively consistent, suggesting good visibility of targets and good communication of these to analysts.
- Limited Growth Prospects: However, analysts still believe that CGI's growth prospects are relatively limited.
A technical analysis of CGI stock:
Short-term technical analysis of CGI shares gives a neutral signal. But in the medium and long-term, the various indicators are sending a strong buy signal on this stock with:
- An RSI at the 55.594 level, which offers a moderate buy signal.
- 9 simple and exponential moving averages are also sending buy signals while 3 are sending sell signals.
- The MACD indicator is at 4.94 and is also sending an interesting buy signal.
- Future technical resistances for CGI stock are currently at 114.94 and 118.03 and the next technical supports are at 107.93 and 104.01.
Who is CGI?
The CGI Group is a Canadian company that provides information technology (IT) and business consulting services.
Among the services offered by the group, we find
- Business consulting
- Strategic integration of information technologies and systems
- Management of information technologies and business processes and intellectual property.
The company offers end-to-end services that span the entire spectrum of technology services, from strategy and digital architecture to design, development, integration and implementation of solutions.
CGI also owns and operates a number of subsidiaries worldwide including CGI Deutschland BV & Co KG, CGI Federal Inc, CGI France SAS and CGI IT UK Limited. The group currently employs over 80,000 people and generates over 28.9% of its revenue in the United States and 15.6% in Canada, with its third largest market being France with 14.2% of revenue.
Who are CGI’s competitors?
In terms of both revenue and market capitalization, CGI is one of the largest consulting and IT services companies in the world. But the company still faces some major competitors, including
- Accenture: This American company is a global consulting firm with over 624,000 employees and operations in nearly 120 countries.
- AWS: Amazon's subsidiary, Amazon Web Services, is a U.S. company specializing in on-demand cloud computing services for both businesses and consumers. Its current revenue is equivalent to more than 11% of Amazon's total revenue.
- Capgemini: This French company specializing in digital services is a consulting firm that is among the world leaders in this sector. The company is listed on the Paris Stock Exchange and is part of the CAC 40 national stock index.
- Atos: This other French company in the digital services sector currently employs over 110,000 people and is present in 73 countries. It is the European leader in cloud, cybersecurity and supercomputing.
- IBM: The IBM Group is a well-known American multinational corporation that operates in various IT fields including hardware, software and IT services. It has long been the largest market capitalization in the world.
- Cognizant: the American multinational provides IT and consulting services and has a strong position in payment technologies.
- Infosys: Infosys Technologies Limited is an Indian company specializing in the provision of IT services including consulting, technology, outsourcing and next generation services.
- SAP: SAP SE is a German company specializing in the development and sale of software, including management and maintenance systems for companies and institutions worldwide.
Who are CGI’s partners?
CGI has been a Salesforce Platinum consulting and integration partner since 2011 with more than 50 projects with major accounts in Europe (France) and North America (Canada).
CGI Group also regularly establishes strategic partnerships with other companies around the world. Recent partners include
- France Televisions: The group signed a partnership with the editorial offices of France Televisions, the leading French broadcaster, for the modernization and homogenization of its editorial tool with the OpenMedia solution for a period of four years.
- OP Financial Group: A partnership has been signed between the two companies to consolidate a long-standing alliance. With this new contract, CGI supports OP in the management and development of applications and becomes responsible for the development and implementation of digital services for OP Financial's insurance business.
- Google Cloud: CGI has also strengthened its cloud capabilities by signing a partnership with Google Cloud and creating a new center of expertise.
- Thales: CGI signed a partnership with Thales and BAE Systems to combine their expertise to work with the UK Ministry of Defence on the second phase of the Royal Navy's Maritime Electronic Warfare Programme.