Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Montreal-based CGI Group Inc. provides end-to-end IT and business process services to clients across the globe. It has a market cal of $11-billion (U.S.)
The company gets strong interest from the Peter Lynch-based model, which considers it a "fast-grower" -- Lynch's favorite type of investment -- thanks to its impressive 21 per cent long-term EPS growth rate. (using an average of the three-, four-, and five-year EPS growth rates).
Story continues below advertisement
Its 16.6 price/earnings ratio and that long-term growth rate make for a PE-to-Growth ratio of 0.8, which Lynch model likes.
It has grown sales at a 29-per-cent pace over long-term, (using an average of the 3-, 4-, and 5-year sales growth rates).
The Warren Buffett-based model likes its 19.6-per-cent return on retained earnings over the past decade.
CGI has an 18-per-cent return on equity (12 month) vs. -3 per cent industry average.
Story continues below advertisement
It has a 36-per-cent return on debt/equity ratio vs. 71-per-cent industry average, which the Martin Zweig-based growth model likes.
It also has a stellar 203 per cent return on capital (EBIT/total capital employed) and 9.4 per cent earnings yield (EBIT/enterprise value), earning it strong interest from the Joel Greenblatt-based model.
Click here for a complete breakdown of Validea's investing guru report.
Globe app users click here.
Story continues below advertisement
Read other research reports here.