The factors in favour of a rise in the Capgemini share price:
Firstly, the CapGemini Company benefits from a considerable advantage from its position on the European and indeed global markets in its activity sector. CapGemini is in fact in the top position in the sector of IT services in Europe and holds tenth position worldwide in this activity sector.
From a geographical point of view, CapGemini has also made great efforts to increase its presence worldwide, notably through a policy of decreasing its activities in Europe including the French, British and Irish markets in favour of the American market which is currently the major geographical market for this company. CapGemini also benefits from a growing presence in emerging markets such as the Asian countries.
Of course, the fact that CapGemini is specialised in IT services offers the company a certain advantageous position in relation to digital transition which is relevant to all businesses worldwide.
The group also counts on its offshore development to remain competitive against strong competition. In fact, CapGemini continues to develop its offshore growth with over 2/3 of its company in countries where the personnel costs, therefore that of production in general, are lower, such as India.
CapGemini can also count upon its expansion contracts to ensure profits for the coming years. It can thereby, for example, rework its taxation obligations with the British administration to ensure a comfortable revenue over several years.
Investors and shareholders in the CapGemini Group are also reassured by the excellent visibility offered by predicted future financial results with an order book that is higher than last year’s turnover. This is a promising indication regarding the growth of the company.
Finally, the group gains points by completing payments to investors in the form of shares in a recurring manner.