CGI

Analysis of CGI share price

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Want to invest in the CGI stock price online? Our article dedicated to this value will provide you with all the information you'll need to carry out your analyses of this stock. We will be presenting the company along with its sector of activity and economic environment in more detail, with the specifics of its sources of income by division, as well as its main competitors in the market, its recent partnerships and its major strengths and weaknesses. Plus, we'll help you carry out your fundamental analysis of this stock with news data and publications for you to watch and study more closely.

Elements that can influence the price of this asset:

Analysis N°1

The acquisitions and strategic mergers of this company are points to be followed with the greatest attention and major signs of growth.

Analysis N°2

You should also keep an eye on the technological partnerships that the group could set up in the months and years to come.

Analysis N°3

The growth of the virtualization market is also something to watch closely.

Analysis N°4

CGI is trying to position itself in the low cost computer market so you should monitor all of its operations in this direction.

Analysis N°5

It's also important to take into account the data coming from the competition of this sector of activity with the major publications of its main adversaries.

Analysis N°6

Keep an eye on the foreign exchange market and the fluctuations of the main currencies which can more or less strongly influence the profitability and the competitiveness of the group.

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General presentation of CGI

Let's try and learn a little more about the CGI Company and its activities with some explanations on its main products and services and therefore its sources of income.

The CGI Group Inc. is an independent Canadian company specializing in information technology or IT consulting services. It offers a range of services, from IT and business consulting to systems integration, as well as outsourcing services and intellectual property solutions. The group offers its services on the basis of a model of local relations with its customers and a global network of services.

The following services are provided:

  • Strategic consulting services in management and IT with business intelligence, business transformation, change management, cybersecurity and consulting services.
  • Business process management with customer service and invoicing options, payment, corporate, collection, engineering and logistics services, document and data services, and services of business process management.
  • System integration services.
  • Development and management of applications.
  • Infrastructure services
  • Exclusive business solutions based on intellectual property.
  • Digital transformation services
Analysis of CGI share price
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The major competitors of CGI

Although the CGI group is currently one of the leaders in its sector of activity worldwide, it is still facing competition from many other companies and in particular from a few large groups which directly threaten its market share. Here is a presentation of the main adversaries of CGI in the current market:

Capgemini 

This French company specializing in digital services was created in 1967 and today ranks among the largest companies in its sector of activity in the world. The company is currently listed on the Paris Stock Exchange and is part of the national CAC 40 stock market index.

Atos 

Next comes the Atos group which is also French and has existed since 1997. It also specializes in digital services and is one of the largest groups in this sector with activities in more than 73 countries and over 110,000 employees. It's also the leader in cloud, cybersecurity and supercomputing in Europe.

IBM 

Of course, the American computer giant IBM is also in the race for IT services to businesses and also offers computer hardware and software.

Sopra Steria 

Finally, CGI's last major competitor is once again a French company, Sopra Steria, which is a digital services company and consulting firm in digital transformation. It offers consultancy and technological services such as system integration, infrastructure management and even business process execution. It is also a business software publisher.


The major partners of CGI

In addition to CGI's competitors, learn a little more about the allies of this group with two tangible examples of large-scale partnerships that the group has been able to put in place in recent years:

Scaled Agile

The first partnership we are going to tell you about is the one signed with Scaled Agile in 2019 for which it became the first global transformation partner. The company has taken advantage of the Scaled Agile management framework that is part of its portfolio of services and solutions to offer comprehensive consulting services to its clients and improve their results. This collaboration demonstrates once again the ability of this company to offer added value to the most complex large companies all over the world.

Michelin 

In 2014, CGI created a major partnership with the French group Michelin. This company specializing in information technology services and Michelin solutions, the subsidiary of Michelin, signed a contract for a period of 4 years. Michelin solutions offers solutions dedicated to fleets of heavy goods vehicles, buses, vans and civil engineering through the design, development and sale of innovative solutions in terms of efficiency, productivity and mobility, including the outsourcing of pneumatic tube, roadside assistance, improved management of semi-trailer fleets and even lower fuel consumption. This partnership is not the first, since Michelin has trusted CGI since 2012 for the implementation and optimization of its IT tools.

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The factors in favour of a rise in the CGI share price:

Regarding the major strengths of this CGI group, the following points should be noted in particular:

  • First of all, the CGI group is currently one of the largest providers of IT services in the world and therefore benefits from a strong reputation.
  • The CGI group's workforce is also one of its strengths. Keep in mind that the CGI group currently employs over 72,000 people around the world.
  • The international development strategy of this company is also appreciated which is present in more than 43 different countries at present.
  • From a strategic point of view, CGI makes a point of making strategic acquisitions in order to increase its number of clients.
  • Finally, the fact that CGI has both expertise in business solutions and IT is another of its major strengths.
The factors in favour of a drop in the CGI share price:

It's also important to know the drawbacks of this value and therefore you'll find the weak points of the company listed below:

  • First of all, the company lacks transparency with regard to its employees, which leads to strong dissatisfaction among the latter and can tarnish its brand image.
  • Finally, the CGI group is particularly exposed to policy changes which are frequent and which can, in certain cases, cause operational problems.
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

What were the major acquisitions of the CGI group?

As you've probably understood, it was CGI's acquisition strategy above all, that enabled it to access its current position in the market. Among the major acquisitions made by this group, there's the Bell Sygma takeover in 1998, IMRglobal in 2001, the acquisition of Cognicase in 2003, the AMS takeover in 2004, the Stanley Inc. takeover in 2010 and even the acquisition of Logica in 2012.

How to anticipate the future CGI share price?

The CGI share price is mainly influenced by events in this sector of activity which leads to an increase or a decrease in demand and therefore in the activities of the group. You should also monitor the financial data regarding the company as well as its long-term development strategies. Investors obviously also use technical analysis to buy or sell stocks in this group, so you should do the same to take advantage of major trends.

How can I follow CGI news?

Your online trading platform will give you direct access to major information about the CGI group and about its stock market shares. But nothing's preventing you from following a personalized news feed on the company on your side or consulting the publications relayed on the group's website.

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