| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 91.00 | -17 |
Capgemini SE (CAP.SW) 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 serves a diverse range of industries, including consumer goods, retail, energy, utilities, banking, insurance, manufacturing, life sciences, public sector, and telecommunications. The company specializes in strategy and transformation services, leveraging cutting-edge technologies like cloud computing, cybersecurity, and data science to help clients modernize and secure their IT environments. Capgemini also provides business process outsourcing and transactional services, along with IT infrastructure maintenance. With a strong focus on innovation, the company has strategic partnerships, such as with CONA Services LLC, to develop digital solutions for the consumer products and retail sectors. Founded in 1967, Capgemini has established itself as a key player in the Information Technology Services sector, driving digital transformation for enterprises worldwide.
Capgemini SE presents a compelling investment opportunity with its strong market position in digital transformation and IT services. The company reported robust financials for FY 2023, including CHF 22.5 billion in revenue and CHF 1.66 billion in net income, supported by a healthy operating cash flow of CHF 2.53 billion. With a market capitalization of CHF 18.7 billion and a beta of 1.034, Capgemini offers moderate volatility relative to the market. The company's diversified service offerings and global footprint mitigate sector-specific risks, while its focus on high-growth areas like cloud and cybersecurity positions it well for future demand. However, investors should be mindful of the competitive IT services landscape and potential macroeconomic pressures affecting client spending. The dividend yield, with a payout of CHF 3.37 per share, adds to its attractiveness for income-focused investors.
Capgemini SE holds a competitive edge in the IT services industry through its comprehensive service portfolio, global reach, and strong client relationships. The company's expertise in digital transformation, cloud computing, and cybersecurity aligns with growing enterprise demand for modernization and security solutions. Capgemini's strategic partnerships, such as with CONA Services LLC, enhance its ability to deliver tailored solutions for specific industries like retail and consumer goods. The company's broad geographic presence allows it to serve multinational clients seamlessly, while its focus on innovation ensures it stays ahead in emerging technologies. However, Capgemini faces intense competition from larger players like Accenture and IBM, which have deeper resources and stronger brand recognition. Additionally, niche competitors specializing in specific technologies or regions may challenge Capgemini's market share. The company's ability to maintain profitability (CHF 1.66 billion net income in 2023) and invest in R&D will be critical to sustaining its competitive position. Its moderate debt level (CHF 5.07 billion) provides flexibility but requires careful management amid rising interest rates.