Rankings Software, cloud & internet Capgemini
Capgemini
77
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- AI disruption of IT services−6
- Quality of growth−3
- ROIC−3
Strengths
- Raised guidance+1
- Stable FCF+1
- Buybacks+1
How the score is built
From 100 to 77, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 123.60 EUR
- Median analyst target
- 147.00 EUR
- Upside to median
- +18.9%
- Analysts
- 17
- Target range
- 107.00 – 177.63 EUR
- 52-week change
- −7%
- P/E (trailing)
- 15.7
- Forward P/E
- 9.5
- PEG
- 1.12
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−10 of −30
- −3Quality of growthRevenue was effectively flat from 2022 to 2025 (22.0 → €22.5bn). The 11.3% growth at constant exchange rates in H1 2026 comes for about 6.5 points from acquisitions (WNS and Cloud4C, €3.8bn in acquisitions in 12 months); organic growth is only about 4–5%.
- −3ROICROIC has fallen from 13.9% in 2023 and 12.6% in 2024 to 9.5% TTM, and ROE from 16.5% to 12.2%; goodwill has risen from 11.2 to 14.7 bn € after the WNS purchase.
- −3MarginReported operating margin 11.2% TTM – unchanged at around 11–11.6% since 2021 – and net margin down from 7.6% (2024) to 5.9%. Adjusted margin only 12.5% in H1 (+0.1 points) despite 11% growth; a labour-based business with no margin expansion.
- −1Capital allocation (stock-based pay)Share-based pay of EUR 242m (about 18% of net profit) and annual employee share programmes mean that buybacks of EUR 868m TTM have reduced the share count by only 0.7%.
Price
Today's multiples against the company's own history and its peers. · 1 finding−2 of −35
- −2Multiples vs own history (EV basis)Forward P/E 7.8 vs 11.4–22.4 in 2021–25 and P/FCF 8.0 vs 10.9–16.0 look cheap, but debt has almost doubled: EV/FCF 11.6 is only about 9% below 2025 (12.7), and EV/EBITDA 7.6 vs 9.7. The low multiple reflects a sector de-rating on AI fears, which has not gone away.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−15 of −35
- −6AI disruption of IT servicesThe share fell 8.4% to a 52-week low of EUR 89 in June 2026 when Accenture cut guidance; the sector is being sold off on fears that AI agents will pressure hourly-based contracts and prices. The share is −13% over a year and −31% since 2023.
- −3Earnings decline and restructuringNet income fell 31% to €498m and normalised EPS 11.9% to €5.29 in H1 2026; the Fit for Growth restructuring costs €628m in H1 of a framework of about €700m, and organic FCF in H1 was only €37m.
- −3DebtNet debt rose from €3.3bn (2024) to €6.45bn at June 2026 after the WNS purchase and a €800m bond in May; net debt/EBITDA has risen from 1.1 to about 2.6 (including leases), and higher financing costs drag net income down.
- −2Governance (ICE case)The subsidiary Capgemini Government Solutions entered into a contract with the US immigration police ICE (framework of over USD 365m); the group acknowledged a lack of control over the unit and is now selling it to ITC Federal after public criticism.
- −1Execution (integration and France)Analysts point to integration risk at WNS and low utilisation in France; the margin improvement of 30–50 points has been pushed to H2 and depends on the savings coming through.
Plus
Only documented strengths. · 4 findings+4 of +15
- +1Raised guidanceThe growth target for 2026 at constant exchange rates raised to 8.5–9.0% from 6.5–8.5%; margin target 13.6–13.8% and organic FCF €1.8–1.9bn maintained.
- +1Stable FCFFCF has held steady at €2.2–2.3bn every year 2021–TTM (FCF margin 9–10%), also after leases (about €0.3bn).
- +1BuybacksBuybacks (€868m) plus dividend (€570m) TTM amount to about €1.44bn, below FCF of €2.19bn.
- +1Order intakeOrder intake €12.6bn in H1 2026 (+7.8% at constant exchange rates), book-to-bill 1.04 and 1.07 in Q2.
Caveats
What the score does not capture, or where the data is weak.
IT consulting and outsourcing do not fit the list exactly; nearest industry is 'Software, cloud & internet'. Forward P/E 7.8 is based on analysts' normalised EPS (€12.7 for 2026), while reported EPS TTM is €7.88 (trailing P/E 13.1) – the difference is mainly restructuring (Fit for Growth, €628m in H1) and amortisation of acquired intangibles. Net debt €6.45bn at 30/6 according to the company (€7.9bn incl. leasing at stockanalysis). Growth of 11.3% at constant exchange rates includes about 6.5 points from acquisitions (WNS, Cloud4C). The sale of Capgemini Government Solutions to ITC Federal (0.4% of revenue) has not yet been completed. The 13th employee share programme (ESOP) is subscribed in November and dilutes if not offset by buybacks. Customer concentration and insider trades have not been examined in depth.
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