GIB

Technology

CGI Inc. · Information Technology Services · $15B

UQS Score — Balanced Preset
49.5
Below Average

CGI Inc. scores 49.5/100 using the Balanced preset.

UQS vs Technology Sector
GIB
49.5
Sector avg
38.0
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Neutral
Valuation
Attractive

What is CGI Inc.?

CGI Inc. is one of the largest independent IT and business process services firms in the world, serving clients across government, financial services, healthcare, and other major industries. Headquartered in Montreal, Canada, CGI operates across North America, Europe, and the Asia Pacific.

CGI generates revenue by delivering end-to-end technology services — from outsourcing entire IT operations to systems integration, consulting, and proprietary software solutions. Clients range from federal government agencies to banks, utilities, and insurers. The company earns fees through long-term managed services contracts, project-based consulting engagements, and recurring software licensing arrangements, giving it a relatively predictable revenue base across economic cycles.

CGI was founded in 1976 and is headquartered in Montreal, Canada.

  • IT and business process outsourcing
  • Systems integration and consulting
  • Application development, maintenance, and modernization
  • Proprietary software solutions for specific industries
  • IT infrastructure and business process services

Is GIB a Good Stock to Buy?

UQS Score rates GIB as Below Average overall, reflecting mixed signals across its five quality pillars.

Valuation stands out as the clearest positive — GIB appears Attractive relative to sector peers, which may interest investors seeking exposure to IT services without paying a premium. The Risk and Quality pillars both register as Neutral, suggesting the business is not in financial distress and maintains a degree of operational stability.

Both the Moat and Growth pillars are rated Weak, indicating limited pricing power versus competitors and a growth trajectory that trails sector peers — two factors that weigh on the composite score.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does GIB pay dividends?

Yes — CGI Inc. pays a dividend.

CGI pays a regular dividend, which is relatively uncommon among large IT services firms that typically reinvest cash into acquisitions or R&D. For a company of CGI's scale and contract-driven revenue model, dividend payments reflect a degree of cash flow consistency. Investors seeking income alongside technology exposure may find this noteworthy, though the yield level should be verified against current market data.

When does GIB report earnings?

CGI Inc. reports earnings on a quarterly cadence, typical for companies listed on North American exchanges.

CGI's results have generally reflected the steady, contract-driven nature of its business model, with managed services providing a recurring revenue floor. Growth has been measured rather than rapid, consistent with the Weak Growth pillar rating in the UQS framework.

For the most recent quarter's results and guidance, visit CGI's official investor relations page.

GIB Price History

-13.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in CGI Inc.?

$
Today it would be worth
$9,084
That's a -9.2% total return, or -1.9% annualized.

Based on CGI Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

GIB Long-term Outlook

The fundamental outlook for GIB is cautious. A Weak Growth pillar suggests the company is not expected to accelerate meaningfully in the near term relative to the broader technology sector. The Attractive Valuation pillar does indicate the market may already be pricing in subdued growth expectations, which could limit downside — but the Weak Moat rating raises questions about CGI's ability to defend margins if competitive pressures intensify in the IT services market.

Growth drivers

  • Long-term government and enterprise outsourcing contracts providing revenue stability
  • Ongoing digital transformation demand across healthcare, finance, and public sectors
  • Potential for bolt-on acquisitions consistent with CGI's historical growth strategy

Key risks

  • Limited competitive differentiation in a crowded IT services landscape
  • Slower organic growth relative to higher-growth technology peers
  • Margin pressure from labor costs and contract repricing cycles

GIB vs Peers

CGI operates in a competitive IT services and technology solutions market alongside several large-cap peers.

CDWGIB scores higher
CDW Corporation

CDW focuses on technology product distribution and solutions for business and government, whereas CGI centers on long-term managed services and consulting engagements.

BRSimilar UQS
Broadridge Financial Solutions, Inc.

Broadridge specializes in financial services technology and investor communications infrastructure, giving it a narrower but deeply entrenched niche compared to CGI's broad sector coverage.

LDOSGIB scores higher
Leidos Holdings, Inc.

Leidos is heavily concentrated in defense, intelligence, and government IT contracts, making it a more specialized government-services competitor to CGI's public sector practice.

Frequently Asked Questions

What does CGI Inc. do?

CGI Inc. provides IT and business process services to clients in government, banking, healthcare, utilities, and other sectors. Its work spans managed IT outsourcing, systems integration, consulting, application development, and proprietary software — essentially acting as a full-service technology partner for large organizations.

Does GIB pay dividends?

Yes, CGI pays a regular dividend. This is relatively uncommon among large IT services firms, which often prioritize acquisitions over shareholder distributions. Investors should check CGI's investor relations page for the current dividend rate and payment schedule.

When does GIB report earnings?

CGI reports earnings on a quarterly cadence, in line with standard practice for North American-listed companies. For exact dates and the most recent results, refer to CGI's investor relations page rather than relying on third-party estimates.

Is GIB a good stock to buy?

The UQS Score rates GIB as Below Average, driven by Weak Moat and Weak Growth pillars. The Attractive Valuation rating suggests the stock is not expensive relative to peers, but investors should weigh that against limited growth momentum. The full pillar breakdown is available to UQS Pro members.

Is GIB overvalued?

Based on the UQS Valuation pillar, GIB is rated Attractive — meaning the stock appears reasonably priced or potentially undervalued relative to sector peers. This is one of the stronger signals in CGI's UQS profile, though valuation alone does not make a complete investment case.

How does GIB compare to its competitors?

CGI competes with firms like CDW Corporation, Broadridge Financial Solutions, and Leidos Holdings. Each competitor has a distinct focus — product distribution, financial technology, or defense IT — while CGI offers a broader managed services and consulting model across multiple industries. See the competitor table above for a side-by-side UQS comparison.

What is GIB's market cap bracket?

CGI Inc. is classified as a large-cap company, placing it among the more established and sizable players in the global IT services sector. Large-cap status generally implies greater liquidity and institutional coverage compared to smaller peers.

Who founded CGI Inc.?

CGI was founded in 1976 by Serge Godin and André Imbeau in Quebec, Canada. The company grew from a small consulting firm into one of the world's largest independent IT services organizations through decades of organic growth and strategic acquisitions.

Is GIB a long-term quality stock?

As a long-term quality indicator, the UQS Score rates GIB as Below Average. The Neutral Quality and Risk pillars suggest operational stability, but the Weak Moat and Weak Growth ratings raise questions about competitive durability and earnings expansion over time. Pro members can access the complete analysis.

What is the main competitive advantage of CGI Inc.?

CGI's primary advantage lies in its long-term client relationships and deep sector expertise, particularly in government and regulated industries. However, the UQS Moat pillar rates this advantage as Weak relative to sector peers, suggesting the company faces meaningful competition for new contracts.

What sector does GIB belong to?

CGI Inc. belongs to the Technology sector, specifically within IT services and business process outsourcing. The company serves clients across a wide range of end markets, making it a diversified technology services provider rather than a pure-play software or hardware firm.

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Pro Analysis

GIB — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 17 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202649.551.637.020.355.2100.00.0
May 22, 202649.551.637.020.555.2100.0+2.1
May 9, 202647.456.237.04.155.2100.0-1.6
May 2, 202649.051.537.021.652.498.2+0.1
May 1, 202648.951.537.020.952.498.2-0.1
Apr 28, 202649.051.537.021.552.498.2-0.1
Apr 26, 202649.151.537.021.952.498.2-0.1
Apr 25, 202649.251.537.021.952.498.7+0.1
Apr 23, 202649.151.237.021.952.498.4+0.2
Apr 18, 202648.951.237.021.252.498.4-0.2

GIB — Pillar Breakdown

Quality

51.6/100 (25%)

CGI Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

20.3/100 (20%)

CGI Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthModerate

Analyst consensus for future earnings growth.

Risk

55.2/100 (15%)

CGI Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

CGI Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

37/100 (25%)

CGI Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for GIB.

Score Composition

Quality
51.6×25%12.9
Growth
20.3×20%4.1
Risk
55.2×15%8.3
Valuation
100.0×15%15.0
Moat
37.0×25%9.3
Total
49.5Below Average

Financial Data

More Stock Analysis

How is the GIB UQS Score Calculated?

The UQS (Unified Quality Score) for CGI Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses CGI Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether CGI Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.