CGI (GIB) Gross Margin % : 16.38% (As of Jun. 2024)

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What is CGI Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CGI's Gross Profit for the three months ended in Jun. 2024 was $439 Mil. CGI's Revenue for the three months ended in Jun. 2024 was $2,679 Mil. Therefore, CGI's Gross Margin % for the quarter that ended in Jun. 2024 was 16.38%.

Warning Sign:

CGI Inc gross margin has been in long-term decline. The average rate of decline per year is -3.2%.

The historical rank and industry rank for CGI's Gross Margin % or its related term are showing as below:

GIB' s Gross Margin % Range Over the Past 10 Years
Min: 16.19 Med: 18.63 Max: 20.62
Current: 16.46

During the past 13 years, the highest Gross Margin % of CGI was 20.62%. The lowest was 16.19%. And the median was 18.63%.

GIB's Gross Margin % is ranked worse than
86.59% of 2618 companies
in the Software industry
Industry Median: 41.435 vs GIB: 16.46

CGI had a gross margin of 16.38% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CGI was -3.20% per year.

CGI Gross Margin % Historical Data

The historical data trend for CGI's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CGI Gross Margin % Chart

CGI Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Gross Margin %

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20.42

20.62

16.25

16.19

CGI Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															16.39	16.20	16.86	16.38	-

Competitive Comparison of CGI's Gross Margin %

For the Information Technology Services subindustry, CGI's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CGI's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, CGI's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CGI's Gross Margin % falls into.

CGI Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

CGI's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	1710.1	/	10565.634
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10565.634 - 8855.532)	/	10565.634
	=	16.19 %

CGI's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	438.8	/	2679.297
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2679.297 - 2240.536)	/	2679.297
	=	16.38 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

CGI (NYSE:GIB) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

CGI had a gross margin of 16.38% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

CGI Gross Margin % Related Terms

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CGI Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CGI Inc (NYSE:GIB) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

0A18:UK CJ5A:Germany CJ5A:Germany GIB.A:Canada

Address

1350 Rene-Levesque Boulevard West, 25th Floor, Montreal, QC, CAN, H3G 1T4

Website

https://www.cgi.com

CGI is a Canada-based IT-services provider with an embedded position in North America and Europe. The company generates more than CAD 14 billion in annual revenue, employs over 90,000 personnel, and operates across 400 offices in 40 countries. CGI offers a broad portfolio of services such as consulting, systems integration, application maintenance, and business process services. Its largest vertical market is government, which contributes more than a third of group revenue.