Review of CGI Inc.

APR 17, 2025 - GIB.A continues to be a global leader in the IT and consulting industry. The company’s business model is slightly sensitive to the macro environment due to its dependence on enterprise spending, which is showing some early signs of a recovery in recent quarters. GIB.A possesses a history of aggressive share buybacks, the company bought back around 49.5% of the company’s total shares outstanding over the last 20 years, which was a respectable record. The annualized returns for GIB.A during the period was around 15% on average. We see GIB.A as a low-risk, low-volatility compounder that could look attractive to investors due to the appealing combination of upside potential and downside protection, especially during this volatile period. We are maintaining our rating at “B+”.