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  5. GIB.A: This company has been doing rather well in a difficult market. [CGI Inc. Class A Subordinate Voting Shares]
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Investment Q&A

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Q: This company has been doing rather well in a difficult market. Would you consider it a buy at today’s
price?
Thank you for your valued opinion.
Ernie

Asked by Ernest on July 22, 2022
5i Research Answer:

Despite being a tech company, CGI has stable cash flows, is a slow growth name and has a low valuation and investors have likely preferred these characteristics in a stock in a market backdrop of rising interest rates and high inflation. However, we believe CGI will remain a slow-growth company for some time and do not see a lot of upside potential from here. We would consider it OK, but not compelling. The valuation is around the historical average at 17x earnings, which we would consider fair for a company growing earnings in the high single digits. However, if one has a 3-5 year+ time horizon we believe there are more attractive tech names of a similar size/stability with better upside potential and stronger fundamentals. Examples include: CSU, OTEX.