CGI (GIB) Financial Strength: 7 (As of Jun. 2026) — Near Median

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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

GIB CGI Inc GIB
80 GF Score
Price $74.82
GF Value $124.41
Valuation Significantly Undervalued
! 1 Warning Sign
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What is CGI Financial Strength?

CGI GIB -0.21% 80 Financial Strength is 7 as of Jun. 2026, which is at its 10-year median of 7.00. GuruFocus rates GIB with a GF Score™ of 80/100 and a GF Value™ of $124.41 (Significantly Undervalued). The stock has 1 warning sign investors should review.

CGI has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

CGI's Interest Coverage for the quarter that ended in Jun. 2026 was 20.18. CGI's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.26. As of today, CGI's Altman Z-Score is 3.13.


CGI  (NYSE:GIB) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

CGI has the Financial Strength Rank of 7.


CGI Financial Strength Related Terms


GIB vs IBM, ACN, FISV: Financial Strength Comparison

For the Information Technology Services subindustry, CGI's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Software Industry

For the Software industry and Technology sector, CGI's Financial Strength distribution charts can be found below:

* The bar in red indicates where CGI's Financial Strength falls into.


GIB
80GF Score
CGI Inc GIB
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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CGI Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

CGI's Interest Expense for the months ended in Jun. 2026 was $-24 Mil. Its Operating Income for the months ended in Jun. 2026 was $486 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $2,355 Mil.

CGI's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*485.714/-24.066
=20.18

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

CGI's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(734.989 + 2355.428) / 11951.04
=0.26

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

CGI has a Z-score of 3.13, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.13 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
CGI (GIB) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on CGI and its competitors. This is near median its historical median of 7.00. Over the past decade, CGI's Financial Strength has ranged from 6.00 to 8.00.
Is CGI's Financial Strength too high?
CGI's current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 8.00. Overall, CGI has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CGI's Financial Strength compare to IBM and ACN?
CGI's Financial Strength of 7 can be compared against companies in the Software industry. Historically, CGI's own Financial Strength has ranged from 6.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on CGI and its competitors. CGI's current Financial Strength is 7, which is near median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CGI stock overvalued right now?
Based on GuruFocus' analysis, CGI (GIB) is currently considered Significantly Undervalued. The stock's GF Value™ is $124.41, compared to a current price of $74.82 — trading 39.9% below its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. CGI's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For CGI (GIB), the current Financial Strength is 7 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is CGI (GIB) Overvalued in 2026?

Based on GuruFocus' analysis, CGI stock appears to be undervalued. The current stock price of $74.82 is trading 39.9% below its estimated GF Value™ of $124.41. GuruFocus considers CGI to be Significantly Undervalued.

Key valuation signals for GIB:

  • Financial Strength: 7 (near median its 10-year median of 7.00)
  • GF Value™: $124.41 vs. price of $74.82 (39.9% below fair value)
  • GF Score™: 80/100 with 1 warning sign

No single metric tells the full story. See the GIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


CGI Business Description

Address 1350 Rene-Levesque Boulevard West, 25th Floor, Affaires Corporatives, Montreal, QC, CAN, H3G 1T4
CGI is a Canada-based IT-services provider with an embedded position in North America and Europe. The company is one of the major IT suppliers to different levels of government around the world. It offers a broad portfolio of services such as consulting, systems integration, application maintenance, and business process services to governments and the private sector. With offices in over 40 countries, CGI follows a balanced global delivery model with most consultants in client proximity.
80GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$74.82
Price
$124.41
GF Value