Robert
GIB.A is now trading at 17.3x times' Forward P/E. In 3Q-2023, GIB.A’s revenue grew 11.2% to $3.62B (or 6.3% on the constant currency basis), slightly missing the estimates of $3.64B and EPS was $1.80 slightly beating estimates of $1.79. The results are not excellent but still largely in line with expectations. The balance sheet is strong, with net debt of $2.8B, and net debt-to-EBITDA is currently at around 2.1x. Although growth is quite weak in terms of constant currency, other operating results are quite consistent with previous quarters, EBIT margin was 16.1%, compared to last year of 16%, and ROIC was 15.7%, also in line with last year’s numbers. GIB.A continues to execute a balanced approach between growth through acquisitions and share repurchases. Given that fundamentals are unchanged compared to long-term trends, we think the drop in share price is a good opportunity to add to the position.