| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 157.85 | 20 |
| Intrinsic value (DCF) | 63.04 | -52 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 62.92 | -52 |
Capgemini SE (CAP.PA) is a global leader in consulting, digital transformation, technology, and engineering services, headquartered in Paris, France. Operating across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific, Capgemini provides a comprehensive suite of services, including strategy and transformation, applications and technology, and business process outsourcing. The company serves diverse industries such as consumer goods and retail, energy and utilities, banking, capital markets, insurance, manufacturing, life sciences, public sector, and telecommunications. With a strong focus on digital innovation, Capgemini leverages cutting-edge technologies like cloud computing, cybersecurity, and data science to help clients modernize and secure their IT environments. Founded in 1967, Capgemini has established strategic partnerships, such as with CONA Services LLC, to enhance its digital solutions for the consumer products and retail sectors. As a key player in the Information Technology Services industry, Capgemini continues to drive digital transformation for enterprises worldwide, positioning itself as a trusted partner in the rapidly evolving tech landscape.
Capgemini SE presents a compelling investment opportunity with its strong market position in the IT services sector, robust revenue of €22.1 billion, and net income of €1.67 billion in the latest fiscal year. The company's diversified service offerings and global footprint provide resilience against regional economic fluctuations. With a diluted EPS of €9.47 and a dividend per share of €6.8, Capgemini demonstrates consistent profitability and shareholder returns. However, investors should consider the company's total debt of €6.08 billion and the competitive nature of the IT services industry, which may pressure margins. The beta of 0.972 suggests the stock is less volatile than the broader market, appealing to risk-averse investors. Capgemini's focus on digital transformation and strategic partnerships positions it well for long-term growth, but macroeconomic headwinds and currency fluctuations could impact performance.
Capgemini SE competes in the highly fragmented IT services industry, where differentiation is key. The company's competitive advantage lies in its comprehensive service portfolio, global presence, and strong client relationships across multiple industries. Capgemini's expertise in digital transformation, cloud computing, and cybersecurity aligns with growing enterprise demand for these services. The company's strategic partnerships, such as with CONA Services LLC, enhance its ability to deliver tailored solutions. However, Capgemini faces intense competition from larger players like Accenture and IBM, which have greater scale and resources. The company's European base provides a stronghold in the region but may limit its growth in faster-growing markets like North America and Asia-Pacific compared to U.S.-based rivals. Capgemini's focus on innovation and its ability to integrate acquisitions effectively, such as its purchase of Altran, strengthen its competitive positioning. Nevertheless, the commoditization of certain IT services and pricing pressures from offshore competitors like TCS and Infosys could challenge margin expansion. Capgemini's ability to maintain its premium positioning while scaling cost-efficiently will be critical to its long-term success.