• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    CGI (TSX:GIB.A) Wins French Modernization Contract, Is It Still 11% Undervalued?

    Simply Wall St·10/19/2026 23:42:10
    Listen to the news

    CGI (TSX:GIB.A) just picked up a sizeable public sector mandate in France, winning a bid to modernize more than 70 applications for the country’s Ministry of Agriculture.

    For context, CGI shares trade at CA$106.96, with the 7 day share price return of 6.87% and 30 day gain of 10.26% suggesting improving short term momentum, even though the year to date share price return is down 14.59% and the 3 year total shareholder return has declined 20.18%.

    Spot opportunities around CGI's contract win by scanning a curated set of 10 high quality undiscovered gems with similar digital modernization exposure.

    After a sharp bounce on the French contract news, the question now is simple. Does CGI’s current price still leave enough upside to justify the risk, once you line it up against fundamentals and valuation markers?

    Most Popular Narrative: 11% Undervalued

    On the most followed view, CGI screens as undervalued, with a fair value estimate of CA$120.69 against the last close of CA$106.96, and that gap is being tied directly to how recurring, AI rich work converts into cash over time.

    The company’s sizeable contracted backlog of $31.8b, including more than $12b expected to be realized over the next 12 months, together with $17.8b of trailing 12 month bookings and a managed services and SI&C pipeline that is growing double digits, supports multi year visibility for revenue, EBIT and operating cash flow.

    See why 30 investors see CGI as 11% undervalued.

    Result: Fair Value of CA$120.69 (UNDERVALUED)

    Still, CGI’s reliance on government and large enterprise budgets, along with higher effective tax rates in key markets, could challenge the upbeat valuation story.

    Find out about the key risks to this CGI narrative.

    Next Steps

    Curious whether the upbeat tone around CGI really holds up for you personally once you look at the details yourself? Act quickly, stress test the thesis against your own expectations, and then weigh it against the 4 key rewards.

    Looking for more investment ideas beyond CGI?

    If CGI has your attention, do not stop there. Broaden your watchlist with other opportunities filtered by quality, resilience and income potential using the Simply Wall St screener.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.