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CGIGIB -2.36%77 Return-on-Tangible-Asset is 27.19% as of Mar. 2026, which is 6% above its 10-year median of 25.61. GuruFocus rates GIB with a GF Score™ of 77/100 and a GF Value™ of $125.05 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,890 Software companies, CGI ranks better than 94.39% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. CGI's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,297 Mil. CGI's average total tangible assets for the quarter that ended in Mar. 2026 was $4,769 Mil. Therefore, CGI's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 27.19%.
The historical rank and industry rank for CGI's Return-on-Tangible-Asset or its related term are showing as below:
GIB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 20.35 Med: 25.61 Max: 29.96
Current: 25.06
During the past 13 years, CGI's highest Return-on-Tangible-Asset was 29.96%. The lowest was 20.35%. And the median was 25.61%.
GIB's Return-on-Tangible-Asset is ranked better than 94.39% of 2890
companies
in the Software industry
Industry Median: 2.07
vs GIB: 25.06
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
CGI Return-on-Tangible-Asset Related Terms
CGI Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for CGI's Return-on-Tangible-Asset 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.
GIB vs IBM, ACN, FISV: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, CGI's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, CGI's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where CGI's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 27.19% mean?
CGI (GIB) has a Return-on-Tangible-Asset of 27.19% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CGI and its competitors. This is near median its historical median of 25.61. Over the past decade, CGI's Return-on-Tangible-Asset has ranged from 20.35 to 29.96. According to the industry distribution chart, CGI ranks #162 out of 2890 companies in the Software industry, placing it in the top 5.6%.
Is CGI's Return-on-Tangible-Asset too high?
CGI's current Return-on-Tangible-Asset of 27.19% is near median its 10-year median of 25.61. Over the past 10 years, this metric has ranged from a low of 20.35 to a high of 29.96. The Software industry median Return-on-Tangible-Asset is 2.07. CGI's value of 27.19% is 1213.5% above this industry median. Based on the distribution chart, CGI ranks #162 out of 2890 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, CGI has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CGI's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, CGI ranks #162 out of 2890 companies for Return-on-Tangible-Asset. This places CGI in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.07. CGI's value of 27.19% is 1213.5% above this benchmark. Historically, CGI's own Return-on-Tangible-Asset has ranged from 20.35 to 29.96 over the past decade. While the company's 10-year median is 25.61 vs. the industry median of 2.07, CGI has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.07, based on 2,890 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CGI's current Return-on-Tangible-Asset of 27.19% is 1213.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CGI and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CGI's current Return-on-Tangible-Asset is 27.19%, which is near median its own 10-year median of 25.61. 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 $125.05, compared to a current price of $66.64 — trading 46.7% below its estimated fair value. The current Return-on-Tangible-Asset is 27.19%, which is near median its 10-year median of 25.61 and 1213.5% above the Software industry median of 2.07. CGI's overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For CGI (GIB), the current Return-on-Tangible-Asset is 27.19% as of Mar. 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 $66.64 is trading 46.7% below its estimated GF Value™ of $125.05.
GuruFocus considers CGI to be Significantly Undervalued.
Key valuation signals for GIB:
Return-on-Tangible-Asset: 27.19% (near median its 10-year median of 25.61)
GF Value™: $125.05 vs. price of $66.64 (46.7% below fair value)
Industry Position: 1213.5% above the Software median (#162 of 2890)
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 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.
77GF Score
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