CAPGEMINI

Analysis of Capgemini share price

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Through reading this article you will be able to learn its current share price as well as a historical summary of the company’s growth and details on the CapGemini Company activities.

Latest news

CAPGEMINI: launch of a new service offer for sustainable IT

14/06/2021 - 12h37

Consulting firm Capgemini is bringing an innovation to the digital world. Indeed, the group has launched a new service offering to reduce the carbon footprint of IT

Elements that can influence the price of this asset:

Analysis N°1

Firstly we know that the turnover and therefore the financial results of the CapGemini Group are highly sensitive to IT investments completed by companies. Another point, this turnover also depends on the workforce and the number of contracts. These factors are therefore extremely important in your long term fundamental analysis.

Analysis N°2

This CapGemini stock market asset displays a strong reactivity to announcements made by the competitive companies with a rapid increase in volatility occurring at the time of these events.  This appears to be particularly true for announcements relating to the American Accenture Group and the Indian group Infosys.

Analysis N°3

We would of course also closely follow the achievement of the strategic plan implemented by the group and which was planned to conclude in the year 2020.

Analysis N°4

Future acquisitions of the group in North America, notably anything related to blockchain solutions which are highly popular at present should be monitored closely.

Analysis N°5

Various rumours relating to a possible alliance between CapGemini and the French Orange Group continue to circulate among investors. This type of activity is therefore highly significant.

Analysis N°6

Finally, it should be noted that the CapGemini shares are only available due to a splintered capital and the fact that the employees and administrators only hold 8.9% of the capital. A foreign investor that wishes to move into Europe may therefore find it advantageous to try for a public takeover bid on this business.

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General presentation of Capgemini

The CapGemini Group is currently one of the leaders in the IT service suppliers sector worldwide. However we can actually split its activities into several distinct categories with the main sector that of the design, development and integration of IT systems. This is followed by info management services, then local IT services as well as advice and counselling.

The major part of this company’s activity is achieved in France but CapGemini is also present in England, Ireland, the Benelux countries, and Scandinavia as well as North America and Pacific Asia.

Analysis of Capgemini share price
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The major competitors of Capgemini

The CapGemini Group is currently one of the largest suppliers in digital and IT services worldwide. It actually holds sixth position worldwide at present in this sector with some major brand names leading the field.

IBM

It is in fact IBM that remains the leader in this activity sector, followed closely by Accenture, CSC & HPE, Fujitsu and Tata Consultancy Services.

Other competitors

Further down in the classification we find companies such as Atos, CGI, Amazon Web Services, Deloitte, Samsung SDS, Dell and Hitachi.


The major partners of Capgemini

Vodafone

In the beginning of the decade 2000 CapGemini announced the creation of a joint venture with Vodafone with the objective of supplying companies with IT services directly through mobile telephones. This new innovative technological joint venture was owned 50/50 by both companies.

QlikTech

In 2011 the QlikTech Group, the world leader in professional IT sector by user signed an international agreement with CapGemini.  Through this partnership CapGemini offered innovative services and solutions to its clients using the QlikView platform.

Salesforce

In 2012, the CapGemini Group signed a partnership agreement with the Salesforce editorial company with the objective of marketing a combined offer for assisting clients in their transition to the Cloud.

Valeo

In 2016, CapGemini joined with Valeo to create a new partnership which was aimed at creating Mov’InBlue, a smart mobility solution for company vehicle fleets and rental vehicle companies. This solution is currently available throughout France.

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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.

The factors in favour of a drop in the Capgemini share price:

Firstly it should be remembered that CapGemini exercises its activities in a sector that is highly sensitive to deflation and which is also highly competitive. The group only holds tenth position worldwide and has trouble gaining new parts of the market in this context.

The finances of the group are also particularly sensitive to the personnel costs. These costs actually represent nearly 2/3 of the operating costs of the company and can therefore prove to be debilitating.

We are also disappointed by the significant slowdown in growth of the company’s activities on the American continent.  This lack of growth is mainly due to a decrease in the growth of the energy markets, particularly the natural gas and oil markets. Concerning other markets the analysts have also communicated their doubts and anxiety relating to the future of the British market over the medium term and the possibilities of a recession that would directly influence the sales of CapGemini in this country.

Finally, although the group is increasingly developing its activities in other countries its presence in emerging countries is still insufficient compared to those of its major competitors that have long been present, notably in Pacific Asia where CapGemini only achieves 5% of its sales.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the different shareholders of the Capgemini Group?

As at November 2020, the capital of the Capgemini Group was divided into different types of shareholders and it can be advantageous to be aware of the different categories. At this date 6.60% of the group’s shares were held by individual shareholders, 5.81% by the FMR LLC, and 5.20% by the group’s employees. Finally, 0.20% of the group’s share capital was held by Mr. Paul Hermelin and 0.10% by the Capgemini Group itself.

What are the latest financial publications of the Capgemini Group?

At present, the latest financial results of the Capgemini Group are those of the financial year 2019. By examining these we note that the net result for the group during this period stood at 852 million Euros. The PER for 2019 was 17.84 and the dividend paid to shareholders was €1.80 with a return of 6.40%. Finally, the group also published certain other interesting figures such as the amount of its capital which stood at 8,419 million Euros.

How to study the price and movements of Capgemini shares?

There are of course different methods enabling the appraisal of the Capgemini share price and the examination of its probable future movements. Ideally you could combine the signals provided by the fundamental analysis, based on the scrutiny of events and publications that influence the price of this asset, with those signals provided by a technical analysis that uses stock market charts and trend indicators.

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