CGI Group (A)

GIB.A-T

TSE:GIB.A

95.71
0.20 (0.21%)
CGI Group Inc., more commonly known as CGI, is a Canadian global information technology consulting, systems integration, outsourcing, and solutions company headquartered in Montreal, Quebec, Canada.
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Analysis and Opinions about GIB.A-T

Signal
Opinion
Expert
BUY
BUY
July 23, 2020
Allan Tong’s Discover Picks CGI is Canada's biggest IT company. It's no secret that tech has boomed during this pandemic and anything serving stay-at-home employees is enjoying a lift. CGI's services are split between outsourcing and consulting, in Canada, Europe and Asia, with a healthy dollop of cybersecurity in an age of heavy demand for online security. The balance sheet is steady and solid, enjoying strong recurring revenue streams, a free cash flow yield of 6% and a forward PE of 17x. The CGI Stock is found in lots of Canadian stock portfolios. Read Top 3 Hits & Misses for our full analysis.
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Allan Tong’s Discover Picks CGI is Canada's biggest IT company. It's no secret that tech has boomed during this pandemic and anything serving stay-at-home employees is enjoying a lift. CGI's services are split between outsourcing and consulting, in Canada, Europe and Asia, with a healthy dollop of cybersecurity in an age of heavy demand for online security. The balance sheet is steady and solid, enjoying strong recurring revenue streams, a free cash flow yield of 6% and a forward PE of 17x. The CGI Stock is found in lots of Canadian stock portfolios. Read Top 3 Hits & Misses for our full analysis.
BUY
BUY
July 16, 2020
Comfortable buying it at these levels. Recurring revenue stream. Trends such as working from home, cybersecurity will benefit the name. Likes it long term.
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Comfortable buying it at these levels. Recurring revenue stream. Trends such as working from home, cybersecurity will benefit the name. Likes it long term.
COMMENT
COMMENT
July 14, 2020
There's been pressure on IT budgets during the pandemic, but CGI has always been well-run. They're good at buying and integrating companies. But expect pressure in the next few years due to tighter company budgets.
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There's been pressure on IT budgets during the pandemic, but CGI has always been well-run. They're good at buying and integrating companies. But expect pressure in the next few years due to tighter company budgets.
PARTIAL BUY
PARTIAL BUY
July 13, 2020
He continues to hold it. It's grown by acquisition well and rolled out their product line effectively. CGI provides IT solutions which enjoys rising demand. Great balance sheet with lots of free cash flow. Another acquisition would help. It's worth holding, at least. Decent valuation and he likes their core business.
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He continues to hold it. It's grown by acquisition well and rolled out their product line effectively. CGI provides IT solutions which enjoys rising demand. Great balance sheet with lots of free cash flow. Another acquisition would help. It's worth holding, at least. Decent valuation and he likes their core business.
TOP PICK
TOP PICK
July 8, 2020
A consulting and outsourcing business. It does not have the same scalability as a software company as its success is based on the number of workers it has. Longer term, this business has a tremendous footprint for its global markets. It plays well into cyber-security concerns. It is valued at 17 times earnings and has a free cash flow yield of 6% with strong recurring revenues. Yield 0% (Analysts’ price target is $97.15)
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A consulting and outsourcing business. It does not have the same scalability as a software company as its success is based on the number of workers it has. Longer term, this business has a tremendous footprint for its global markets. It plays well into cyber-security concerns. It is valued at 17 times earnings and has a free cash flow yield of 6% with strong recurring revenues. Yield 0% (Analysts’ price target is $97.15)
TOP PICK
TOP PICK
June 24, 2020
She has owned this for quite a while. At this price level it is a buy. Their business is split between outsourcing and consulting. This includes high recurring revenues. The lock down and pandemic has slowed some of their business. However, she thinks companies will realize the value of the services in security and outsourcing going forward. They have a sold balance sheet to fund future acquisitions. Yield 0% (Analysts’ price target is $97.12)
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She has owned this for quite a while. At this price level it is a buy. Their business is split between outsourcing and consulting. This includes high recurring revenues. The lock down and pandemic has slowed some of their business. However, she thinks companies will realize the value of the services in security and outsourcing going forward. They have a sold balance sheet to fund future acquisitions. Yield 0% (Analysts’ price target is $97.12)
COMMENT
COMMENT
June 10, 2020

Rather than GIB, he prefers ACN. If he wanted to expand into information services, he would add GIB.

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Rather than GIB, he prefers ACN. If he wanted to expand into information services, he would add GIB.

BUY
BUY
May 1, 2020
He likes and owns this stock and would be a buyer today. It is Canada's largest IT company, offering outsourcing in Canada, Europe and Asia Pacific. Their recent earnings were better than expectations. They are running lean and benefiting from small acquisitions. They manage to grow earnings at 10% annually over 5 years and it trades at 17 times earnings. The revenue is highly visible and sticky and highly contracted.
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He likes and owns this stock and would be a buyer today. It is Canada's largest IT company, offering outsourcing in Canada, Europe and Asia Pacific. Their recent earnings were better than expectations. They are running lean and benefiting from small acquisitions. They manage to grow earnings at 10% annually over 5 years and it trades at 17 times earnings. The revenue is highly visible and sticky and highly contracted.
TOP PICK
TOP PICK
April 9, 2020
Systems integration outsourcing. They have a history of growth by acquisition. On the organic growth front they are developing a lot of intellectual property and licensing it into its client engagements. The pullback is very viable. (Analysts’ price target is $104.33)
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Systems integration outsourcing. They have a history of growth by acquisition. On the organic growth front they are developing a lot of intellectual property and licensing it into its client engagements. The pullback is very viable. (Analysts’ price target is $104.33)
BUY WEAKNESS
BUY WEAKNESS
March 30, 2020
If it got back down to $60 or EBV+3 it would be a fantastic price. It is a good opportunity to buy or buy more, however it could get down to $59 still.
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CGI Group (A) (GIB.A-T)
March 30, 2020
If it got back down to $60 or EBV+3 it would be a fantastic price. It is a good opportunity to buy or buy more, however it could get down to $59 still.
TOP PICK
TOP PICK
February 26, 2020
An IT outsourcing and consulting company. Companies are getting more digital and efficient, which benefits CGI. Massive earnings, a great compounder. (Analysts’ price target is $112.21)
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CGI Group (A) (GIB.A-T)
February 26, 2020
An IT outsourcing and consulting company. Companies are getting more digital and efficient, which benefits CGI. Massive earnings, a great compounder. (Analysts’ price target is $112.21)
COMMENT
COMMENT
February 14, 2020

CGI has been on a monster tear. There are rare non-commodity, utility or financial companies. There is a premium on these. They missed on a quarter and organic growth is slowing. It is an acquisition story, however. He would prefer Constellation Software that they own.

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CGI Group (A) (GIB.A-T)
February 14, 2020

CGI has been on a monster tear. There are rare non-commodity, utility or financial companies. There is a premium on these. They missed on a quarter and organic growth is slowing. It is an acquisition story, however. He would prefer Constellation Software that they own.

TOP PICK
TOP PICK
February 13, 2020
Wait for a pullback, which is now. Growth was weaker than anticipated. Company says it will maintain growth of 5-6%. Inorganic growth and M&A will likely pick up. Will do well long term. Strong balance sheet. No dividend. (Analysts’ price target is $112.25)
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CGI Group (A) (GIB.A-T)
February 13, 2020
Wait for a pullback, which is now. Growth was weaker than anticipated. Company says it will maintain growth of 5-6%. Inorganic growth and M&A will likely pick up. Will do well long term. Strong balance sheet. No dividend. (Analysts’ price target is $112.25)
DON'T BUY
DON'T BUY
February 10, 2020
He had owned it forever for growing by acquisition, but he lightened recently because the valuation is too high, and the last quarter disappointed with slower organic growth and margin pressure. It'll be harder for them to make bigger acquisitions that accrete. This stock won't move higher as it has in the past.
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CGI Group (A) (GIB.A-T)
February 10, 2020
He had owned it forever for growing by acquisition, but he lightened recently because the valuation is too high, and the last quarter disappointed with slower organic growth and margin pressure. It'll be harder for them to make bigger acquisitions that accrete. This stock won't move higher as it has in the past.
SELL
SELL
January 30, 2020
They have done a spectacular job over the long term. This is not a cheap stock and he sees earnings growth slowing. There are better places to be. This industry gets more and more competitive by the day. The stock price has move ahead of itself.
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CGI Group (A) (GIB.A-T)
January 30, 2020
They have done a spectacular job over the long term. This is not a cheap stock and he sees earnings growth slowing. There are better places to be. This industry gets more and more competitive by the day. The stock price has move ahead of itself.
BUY
BUY
January 21, 2020

Canadian mid-caps (no past picks today) He specializes in these. They are under the radar of Canada's large mutual funds and receive little analyst coverage, so they trade at a discount. (No past picks today.) He buys stocks only during momentum, as they are rising and keep rising. CGI is a leader in Canadian tech. CGI has a long, long runway and the chart enjoys a strong up channel with investors willing to pay rising stock prices as management executes well.

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CGI Group (A) (GIB.A-T)
January 21, 2020

Canadian mid-caps (no past picks today) He specializes in these. They are under the radar of Canada's large mutual funds and receive little analyst coverage, so they trade at a discount. (No past picks today.) He buys stocks only during momentum, as they are rising and keep rising. CGI is a leader in Canadian tech. CGI has a long, long runway and the chart enjoys a strong up channel with investors willing to pay rising stock prices as management executes well.

BUY
BUY
January 20, 2020
He does not own it any more. They sometimes meet and then don't meet his criteria. The space is quite fragmented. The company is doing a lot of the great things. It would be a company to have for 5 years. There have not been a lot of pullbacks.
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CGI Group (A) (GIB.A-T)
January 20, 2020
He does not own it any more. They sometimes meet and then don't meet his criteria. The space is quite fragmented. The company is doing a lot of the great things. It would be a company to have for 5 years. There have not been a lot of pullbacks.
WEAK BUY
WEAK BUY
January 13, 2020
It has been a good story. It is a Canadian national champion. The only challenge he has is that his clients have an ambition to have a dividend. He would buy it if they initiated a dividend. If you don’t need one, then it is one to look at. Look for a better entry point.
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CGI Group (A) (GIB.A-T)
January 13, 2020
It has been a good story. It is a Canadian national champion. The only challenge he has is that his clients have an ambition to have a dividend. He would buy it if they initiated a dividend. If you don’t need one, then it is one to look at. Look for a better entry point.
TOP PICK
TOP PICK
January 9, 2020
They have a lot of growth runway. It is a core part of her strategy. There is a multiyear growth runway. 5% free cash flow year on an enterprise basis. It is a core holding. (Analysts’ price target is $110.22)
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CGI Group (A) (GIB.A-T)
January 9, 2020
They have a lot of growth runway. It is a core part of her strategy. There is a multiyear growth runway. 5% free cash flow year on an enterprise basis. It is a core holding. (Analysts’ price target is $110.22)
PARTIAL SELL
PARTIAL SELL
January 3, 2020
In technology, there are only a couple of stocks big enough for Canadian pension funds to own. This is one of them and it has not become very expensive. He would take some partial profits and buy back in on a pullback. On a market dip, this could fall more than the market average as a result.
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CGI Group (A) (GIB.A-T)
January 3, 2020
In technology, there are only a couple of stocks big enough for Canadian pension funds to own. This is one of them and it has not become very expensive. He would take some partial profits and buy back in on a pullback. On a market dip, this could fall more than the market average as a result.
BUY
BUY
December 31, 2019
A great Canadian tech story. They acquire businesses with cash then absorb those companies is incredibly accretive, propelling growth. They're a great executor. Also likes Enghouse, a great performer.
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CGI Group (A) (GIB.A-T)
December 31, 2019
A great Canadian tech story. They acquire businesses with cash then absorb those companies is incredibly accretive, propelling growth. They're a great executor. Also likes Enghouse, a great performer.
BUY
BUY
December 17, 2019
A great consolidator and a true compounder over many years. They are overdue for an acquisition which he expects to be accretive. Good balance sheet. Great long-term outlook. Managers integrate new companies well.
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CGI Group (A) (GIB.A-T)
December 17, 2019
A great consolidator and a true compounder over many years. They are overdue for an acquisition which he expects to be accretive. Good balance sheet. Great long-term outlook. Managers integrate new companies well.
HOLD
HOLD
November 22, 2019
Time to sell? He owns this one. It has been going through consolidation over the summer and has now broken out to the upside. He would continue to hold it.
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CGI Group (A) (GIB.A-T)
November 22, 2019
Time to sell? He owns this one. It has been going through consolidation over the summer and has now broken out to the upside. He would continue to hold it.
BUY
BUY
November 19, 2019
A strong upward chart since at least 2011. Straight up. Don't sell unless you are a trader. Add or hold.
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CGI Group (A) (GIB.A-T)
November 19, 2019
A strong upward chart since at least 2011. Straight up. Don't sell unless you are a trader. Add or hold.
TOP PICK
TOP PICK
November 18, 2019
It's cruising along with a long-term uptrend. Great chart. (Analysts’ price target is $109.56)
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CGI Group (A) (GIB.A-T)
November 18, 2019
It's cruising along with a long-term uptrend. Great chart. (Analysts’ price target is $109.56)
COMMENT
COMMENT
November 13, 2019
AMD vs Apple vs Canadian Tech? His price target for AMD is $41.50 -- pretty close to full value right now. Apple will continue to melt up and you should be able to price it cheaper than today. He has a price target of $265. A Canadian stock like CGI would be good.
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CGI Group (A) (GIB.A-T)
November 13, 2019
AMD vs Apple vs Canadian Tech? His price target for AMD is $41.50 -- pretty close to full value right now. Apple will continue to melt up and you should be able to price it cheaper than today. He has a price target of $265. A Canadian stock like CGI would be good.
BUY
BUY
October 10, 2019
You can buy it comfortably. It's a long-term grower. Steady-Eddy, consistent performer.
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CGI Group (A) (GIB.A-T)
October 10, 2019
You can buy it comfortably. It's a long-term grower. Steady-Eddy, consistent performer.
BUY WEAKNESS
BUY WEAKNESS
October 9, 2019
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
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CGI Group (A) (GIB.A-T)
October 9, 2019
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
BUY WEAKNESS
BUY WEAKNESS
October 9, 2019
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
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CGI Group (A) (GIB.A-T)
October 9, 2019
She used to own it for years. She's waiting for it to fall below $100 to re-enter. It used to trade at a discount to peers, but now more than its peers.
COMMENT
COMMENT
August 7, 2019

Sell CGI and buy Agnico and gold now? He's owned this for years and done well with it. Gold is a useful hedge, and Agnico Eagle is a quality miner (see his comments in this show). GIB stock will go higher. This trade makes sense.

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CGI Group (A) (GIB.A-T)
August 7, 2019

Sell CGI and buy Agnico and gold now? He's owned this for years and done well with it. Gold is a useful hedge, and Agnico Eagle is a quality miner (see his comments in this show). GIB stock will go higher. This trade makes sense.

BUY WEAKNESS
BUY WEAKNESS
July 31, 2019
Tech stocks' seasonality is Q4. Dec. 22-March 13 is GIB's seasonality. It's a former top pick. The chart shows higher highs and lows. Today it tested its 50-day moving average, so short-term sellers are getting out, so maybe don't touch this until it gets cheaper.
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Tech stocks' seasonality is Q4. Dec. 22-March 13 is GIB's seasonality. It's a former top pick. The chart shows higher highs and lows. Today it tested its 50-day moving average, so short-term sellers are getting out, so maybe don't touch this until it gets cheaper.
PARTIAL SELL
PARTIAL SELL
July 15, 2019

or buy Open Text? Good idea to take some profits and move to Open Text. But hold onto CGI. Valuation is still low. They do well in absorbing acquisitions to pay down debt. This has done amazingly half, and growth possibilities remain--as long as they buy a company.

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or buy Open Text? Good idea to take some profits and move to Open Text. But hold onto CGI. Valuation is still low. They do well in absorbing acquisitions to pay down debt. This has done amazingly half, and growth possibilities remain--as long as they buy a company.

PAST TOP PICK
PAST TOP PICK
July 5, 2019
(A Top Pick Jan 10/19, Up 17%) Has been on a nice uptrend since the year started with little volatility, and since mid-2017 has enjoyed a longer uptrend. Still a core position for him.
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(A Top Pick Jan 10/19, Up 17%) Has been on a nice uptrend since the year started with little volatility, and since mid-2017 has enjoyed a longer uptrend. Still a core position for him.
BUY
BUY
June 7, 2019
He loves it. Since 2013, there's been a fine uptrend. You can buy this long-term, buy, forget it and do well. This will continue to rise. Don't wait for a correction.
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He loves it. Since 2013, there's been a fine uptrend. You can buy this long-term, buy, forget it and do well. This will continue to rise. Don't wait for a correction.
BUY WEAKNESS
BUY WEAKNESS
May 1, 2019
It has been a good growth company. There is a large amount of organic growth occurring. A well-managed company, but it trades at too high a valuation for him right now -- although the growth may justify the valuation.
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It has been a good growth company. There is a large amount of organic growth occurring. A well-managed company, but it trades at too high a valuation for him right now -- although the growth may justify the valuation.
TOP PICK
TOP PICK
April 15, 2019
Technology is doing quite well. This one is at a new high. They recently announced an all cash acquisition to broaden their footprint and increase sales. You can't overemphasize new highs. Usually they move to even more new highs. (Analysts’ price target is $91.03)
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CGI Group (A) (GIB.A-T)
April 15, 2019
Technology is doing quite well. This one is at a new high. They recently announced an all cash acquisition to broaden their footprint and increase sales. You can't overemphasize new highs. Usually they move to even more new highs. (Analysts’ price target is $91.03)