CGI Group is engaged in managing information technology services, including outsourcing, systems integration and consulting, software licenses and maintenance, as well as business process services to help clients realize their strategies and create added value.
  • TickerGIB.A
  • ISINCA12532H1047
  • ExchangeToronto Stock Exchange
  • SectorSoftware & Computer Services
  • CountryCanada

Analysts

Andrew Lange

Morningstar | GIB Updated Star Rating from 13 Jun 2019

CGI is a Canada-based IT services provider with an embedded competitive position in North America and Europe. With more than CAD 22.5 billion in backlog, an average contract duration of six to seven years, and some of those contracts attached to clients that have been with the firm longer than 25 years, CGI has a solid operational foundation, in our opinion.Given the often mission-critical nature of work performed by CGI and its existing relationships, we think the firm benefits from high switching costs. A strong position in five industry verticals and government-related businesses is expecte...

Andrew Lange

Morningstar | We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI is a Canada-based IT services provider with an embedded competitive position in North America and Europe. With more than CAD 22.5 billion in backlog, an average contract duration of six to seven years, and some of those contracts attached to clients that have been with the firm longer than 25 years, CGI has a solid operational foundation, in our opinion.Given the often mission-critical nature of work performed by CGI and its existing relationships, we think the firm benefits from high switching costs. A strong position in five industry verticals and government-related businesses is expecte...

Andrew Lange

We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI’s second-quarter results were mostly within our expectations, although we were buoyed by more positive sentiment around the firm’s operations in the United Kingdom and ongoing booking growth for consulting and systems integration services. Consulting and SI bookings accounted for 71% of the company’s quarterly bookings, and 42% of these signings were for new business, which illustrates CGI’s ability to meet clients’ demand for end-to-end digital transformation services. Furthermore, on the c...

Andrew Lange

We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI’s second-quarter results were mostly within our expectations, although we were buoyed by more positive sentiment around the firm’s operations in the United Kingdom and ongoing booking growth for consulting and systems integration services. Consulting and SI bookings accounted for 71% of the company’s quarterly bookings, and 42% of these signings were for new business, which illustrates CGI’s ability to meet clients’ demand for end-to-end digital transformation services. Furthermore, on the c...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Market rangebound; Upgrading Services In last week's Compass we made several observations which led us to be cautious. All of the concerning observations have since reversed as the market found support: the U.S. dollar weakened, defensive areas underperformed, cyclical areas held at logical support, high yield spreads narrowed, and the 10-year Treasury yield found support. These positive developments are encouraging, however we believe the market remains rangebound. • S&P 500 levels. We believe the market remains in purgatory as technical indicators remain mixed. We see the S&P 500 remaining...

Andrew Lange

Morningstar | GIB Updated Star Rating from 13 Jun 2019

CGI is a Canada-based IT services provider with an embedded competitive position in North America and Europe. With more than CAD 22.5 billion in backlog, an average contract duration of six to seven years, and some of those contracts attached to clients that have been with the firm longer than 25 years, CGI has a solid operational foundation, in our opinion.Given the often mission-critical nature of work performed by CGI and its existing relationships, we think the firm benefits from high switching costs. A strong position in five industry verticals and government-related businesses is expecte...

Andrew Lange

Morningstar | We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI is a Canada-based IT services provider with an embedded competitive position in North America and Europe. With more than CAD 22.5 billion in backlog, an average contract duration of six to seven years, and some of those contracts attached to clients that have been with the firm longer than 25 years, CGI has a solid operational foundation, in our opinion.Given the often mission-critical nature of work performed by CGI and its existing relationships, we think the firm benefits from high switching costs. A strong position in five industry verticals and government-related businesses is expecte...

Andrew Lange

We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI’s second-quarter results were mostly within our expectations, although we were buoyed by more positive sentiment around the firm’s operations in the United Kingdom and ongoing booking growth for consulting and systems integration services. Consulting and SI bookings accounted for 71% of the company’s quarterly bookings, and 42% of these signings were for new business, which illustrates CGI’s ability to meet clients’ demand for end-to-end digital transformation services. Furthermore, on the c...

Andrew Lange

We Believe CGI's Narrow Economic Moat Stems From Significant Switching Costs

CGI’s second-quarter results were mostly within our expectations, although we were buoyed by more positive sentiment around the firm’s operations in the United Kingdom and ongoing booking growth for consulting and systems integration services. Consulting and SI bookings accounted for 71% of the company’s quarterly bookings, and 42% of these signings were for new business, which illustrates CGI’s ability to meet clients’ demand for end-to-end digital transformation services. Furthermore, on the c...

Andrew Lange

Morningstar | Consulting and Systems Integration Drives CGI's 2Q Performance; Shares at a Premium

CGI’s second-quarter results were mostly within our expectations, although we were buoyed by more positive sentiment around the firm’s operations in the United Kingdom and ongoing booking growth for consulting and systems integration services. Consulting and SI bookings accounted for 71% of the company’s quarterly bookings, and 42% of these signings were for new business, which illustrates CGI’s ability to meet clients’ demand for end-to-end digital transformation services. Furthermore, on the consulting and SI front, we think the upcoming acquisition of Acando for approximately CAD 600 millio...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Market rangebound; Upgrading Services In last week's Compass we made several observations which led us to be cautious. All of the concerning observations have since reversed as the market found support: the U.S. dollar weakened, defensive areas underperformed, cyclical areas held at logical support, high yield spreads narrowed, and the 10-year Treasury yield found support. These positive developments are encouraging, however we believe the market remains rangebound. • S&P 500 levels. We believe the market remains in purgatory as technical indicators remain mixed. We see the S&P 500 remaining...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Caution warranted; Downgrading Materials We continue to believe that caution is warranted and we are concerned that key support levels we have been monitoring may not hold -- notably 2,800 and the 200-day MA on the S&P 500 and 4,125 and the 200-day MA on the equal-weighted S&P 500. Below we highlight several negative developments which increase the likelihood of a breakdown below these key S&P 500 support levels. • Cyclicals are deteriorating. We are downgrading Materials (XLB, RTM) to underweight -- reduce exposure and raise cash where possible. The Sector is succumbing to price and RS dete...

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