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1. Company Snapshot

1.a. Company Description

Capgemini SE provides consulting, digital transformation, technology, and engineering services primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.The company offers strategy and transformation services, including strategy, technology, data science, and creative design to support various clients within the digital economy.It also provides applications and technology services that helps the clients to develop, modernize, extend, and secure their IT and digital environment using the latest technologies, as well as offers local technology services in cloud, cybersecurity, quality assurance, testing, and new technology fields.


In addition, the company offers business process outsourcing and transactional services, as well as installation and maintenance services for its clients' IT infrastructures in data centers or in the cloud.It serves various industries, including consumer goods and retail; energy and utilities; banking, capital markets, and insurance; manufacturing and life sciences; public sector; telecommunications, media, and technology; and services.Capgemini SE has a strategic partnership with CONA Services LLC to develop digital solutions for the consumer products industry and retail customers.


The company was founded in 1967 and is headquartered in Paris, France.

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1.b. Last Insights on CAP

Capgemini's recent performance was negatively impacted by a soft patch, with a 7-day share price return of a 9.26% decline. The company's valuation has drawn attention, with a focus on its scale, including €22,065m in revenue and €1,560m in net income. Despite recent cloud and AI announcements with AWS and Google Cloud, the share price has come under pressure. The company's annual bookings reached $28.96bn, a 3.9% increase. A share capital reduction of 0.8% was also announced.

1.c. Company Highlights

2. Capgemini's FY2025 Results: Solid Performance and Ambitious Guidance

Capgemini's full-year 2025 results demonstrated a robust financial performance, with revenues reaching EUR 22.46 billion, representing 3.4% growth at constant currency. The operating margin stood at 13.3%, and normalized EPS was EUR 12.95, up 5.8% year-on-year. Organic free cash flow was EUR 1.95 billion, indicating a strong ability to generate cash. The company's financial performance was broad-based, with improvements across businesses, regions, and sectors.

Publication Date: Feb -14

📋 Highlights
  • Revenue Growth: EUR 22.46 billion (+3.4% at constant currency), exceeding upgraded guidance with scope impact of 2.5 points.
  • Bookings Momentum: EUR 24.36 billion booked, with a book-to-bill ratio of 1.21 in Q4 (1.08 annually), reflecting strong client demand.
  • Margin & Cash Flow: Operating margin stable at 13.3%, organic free cash flow of EUR 1.95 billion, and normalized EPS up 5.8% to EUR 12.95.
  • AI & Strategic Focus: Double-digit growth in Digital BPS, with AI, Intelligent Operations, and Sovereignty driving transformation programs and client value.
  • ESG Progress: 100% renewable electricity for operations, 40.5% women in workforce (+7 pts since 2019), and CyberVadis score of 990/1,000.

Revenue Growth and Margin Performance

The revenue growth was driven by improving performance across the board, with North America recording the strongest acceleration. The company's growth engine is focused on AI, Intelligent Operations, and Sovereignty, with significant wins in large transformation programs, particularly in cloud, data, and AI, and digital business process services. The operating margin was stable at 13.3% within the guided range, despite a challenging market environment.

Guidance and Outlook

Capgemini targets constant currency revenue growth of 6.5-8.5% in 2026, with an inorganic contribution of around 4.5-5 points, and an operating margin of 13.6-13.8%. Organic free cash flow is expected to be around EUR 1.8-1.9 billion. The guidance is solid but below the exit rate of Q4 on an organic basis, reflecting conservatism due to the complex macro environment. As Aiman Ezzat noted, "the level of AI adoption is still at the beginning, and the transformation is complex."

Valuation and Return Metrics

With a P/E Ratio of 15.42 and an EV/EBITDA of 10.27, the market appears to have priced in a moderate growth outlook. The Dividend Yield stands at 3.24%, indicating an attractive return for income investors. The ROE of 10.53% and ROIC of 6.62% suggest a decent return on equity and invested capital, respectively. The Net Debt / EBITDA ratio of 1.88 is manageable, indicating a reasonable level of indebtedness.

ESG Progress and Operational Highlights

Capgemini made progress on ESG metrics, with 100% renewable electricity for all operations and a proportion of women in the global workforce reaching 40.5%. The company also achieved a CyberVadis score of 990 out of 1,000, highlighting its commitment to cybersecurity. Operationally, the company is focusing on delivering value and providing proof points of its success, such as winning deals and creating value across the value chain.

3. NewsRoom

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Capgemini to acquire leading independent product lifecycle management and industrial digitalization specialist, Piterion

Mar -09

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Capgemini and McDonald’s extend technology partnership for five years

Mar -06

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Capgemini and McDonald's renew their strategic partnership with a global multi-year agreement focused on delivering modern, scalable platforms

Mar -05

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Assessing Capgemini (ENXTPA:CAP) Valuation After Recent Share Price Weakness And Underpriced Fair Value Signal

Mar -04

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Capgemini Leans Into Enterprise AI And Telecom Automation As Valuation Lags

Mar -04

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Digital Utility Industry Report 2026-2035, Profiles of ABB, Accenture, Capgemini, Cisco, Cognizant, Eaton, GE, Honeywell, IBM, Itron, Microsoft, Oracle, SAP, Schneider Electric, Siemens, Toshiba

Mar -03

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Capgemini and Deutsche Telekom engineer an Open Platform for Intelligent RAN Automation

Feb -27

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Capgemini and TELUS to Accelerate Towards Autonomous Telecommunications Networks

Feb -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.79%)

6. Segments

Strategy & Transformation

Expected Growth: 15.6%

Increasing demand for digital transformation and strategy consulting services, driven by clients' requirements to stay competitive and adapt to changing market conditions, will fuel growth in Capgemini's Strategy & Transformation consulting services.

Applications & Technology

Expected Growth: 7.1%

Capgemini's growth is driven by increasing adoption of cloud services, digital transformation, and cybersecurity, as well as its strong partnerships and acquisitions in the industry.

Operations & Engineering

Expected Growth: 10.3%

Capgemini's Operations & Engineering segment growth is driven by increasing demand for digital transformation in industries such as manufacturing, aerospace, and automotive, as well as growing need for business process outsourcing and IT outsourcing services.

7. Detailed Products

Consulting Services

Capgemini's consulting services help clients to transform their business by providing strategic guidance, innovative solutions, and industry expertise.

Digital Transformation

Capgemini's digital transformation services enable clients to innovate, optimize, and transform their business models, products, and services using digital technologies.

Cloud Services

Capgemini's cloud services help clients to migrate, manage, and optimize their applications and infrastructure in the cloud, ensuring scalability, flexibility, and cost savings.

Cybersecurity Services

Capgemini's cybersecurity services help clients to protect their business from cyber threats by providing threat detection, incident response, and security consulting services.

Data and Analytics

Capgemini's data and analytics services help clients to unlock insights from their data, enabling them to make informed decisions, improve operations, and drive innovation.

Application Services

Capgemini's application services help clients to design, develop, and maintain their applications, ensuring they are scalable, secure, and meet business needs.

Infrastructure Services

Capgemini's infrastructure services help clients to design, implement, and manage their IT infrastructure, ensuring it is scalable, secure, and efficient.

Business Process Outsourcing (BPO)

Capgemini's BPO services help clients to outsource their business processes, enabling them to focus on core business activities, reduce costs, and improve efficiency.

8. Capgemini SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Capgemini SE is medium, as there are some alternatives available for its services, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Capgemini SE is low, as the company has a strong brand reputation and provides customized services, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Capgemini SE is medium, as the company relies on a few key suppliers for its operations, but it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants for Capgemini SE is low, as the company has a strong brand reputation and it is difficult for new entrants to replicate its services and scale of operations.

Intensity Of Rivalry

The intensity of rivalry for Capgemini SE is high, as the company operates in a highly competitive industry with many established players, and it needs to continuously innovate and differentiate itself to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.45%
Debt Cost 3.95%
Equity Weight 63.55%
Equity Cost 9.26%
WACC 7.32%
Leverage 57.37%

11. Quality Control: Capgemini SE passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nedap

A-Score: 6.2/10

Value: 2.4

Growth: 3.7

Quality: 7.0

Yield: 6.9

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Computacenter

A-Score: 6.0/10

Value: 4.7

Growth: 6.9

Quality: 5.9

Yield: 4.4

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Neurones

A-Score: 6.0/10

Value: 4.8

Growth: 6.3

Quality: 7.2

Yield: 6.2

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Accenture

A-Score: 4.8/10

Value: 3.1

Growth: 5.8

Quality: 7.7

Yield: 3.8

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Capgemini

A-Score: 4.5/10

Value: 4.3

Growth: 6.0

Quality: 5.8

Yield: 3.1

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

106.9$

Current Price

106.9$

Potential

-0.00%

Expected Cash-Flows