General presentation of the CapGemini Company:
The CapGemini Group is currently one of the leaders in the IT service suppliers sector worldwide. However we can actually split its activities into several distinct categories with the main sector that of the design, development and integration of IT systems. This is followed by info management services, then local IT services as well as advice and counselling.
The major part of this company’s activity is achieved in France but CapGemini is also present in England, Ireland, the Benelux countries, and Scandinavia as well as North America and Pacific Asia.
Know the competition to CapGemini shares:
The CapGemini Group is currently one of the largest suppliers in digital and IT services worldwide. It actually holds sixth position worldwide at present in this sector with some major brand names leading the field.
- IBM: It is in fact IBM that remains the leader in this activity sector, followed closely by Accenture, CSC & HPE, Fujitsu and Tata Consultancy Services.
- Other competitors: Further down in the classification we find companies such as Atos, CGI, Amazon Web Services, Deloitte, Samsung SDS, Dell and Hitachi.
The strategic alliances implemented by the CapGemini Group:
- Vodafone: In the beginning of the decade 2000 CapGemini announced the creation of a joint venture with Vodafone with the objective of supplying companies with IT services directly through mobile telephones. This new innovative technological joint venture was owned 50/50 by both companies.
- QlikTech: In 2011 the QlikTech Group, the world leader in professional IT sector by user signed an international agreement with CapGemini. Through this partnership CapGemini offered innovative services and solutions to its clients using the QlikView platform.
- Salesforce: In 2012, the CapGemini Group signed a partnership agreement with the Salesforce editorial company with the objective of marketing a combined offer for assisting clients in their transition to the Cloud.
- Valeo: In 2016, CapGemini joined with Valeo to create a new partnership which was aimed at creating Mov’InBlue, a smart mobility solution for company vehicle fleets and rental vehicle companies. This solution is currently available throughout France.
Stock market data
Before launching into speculating on the CapGemini share price online and implementing your strategy it is important that you first analyse all the information that we have previously provided relating to the CapGemini Company, its recent history and the history of its share price on the stock markets. But here is some more information you should know about this company relating to its position on the stock markets:
- In 2017, the total stock market capitalisation of the CapGemini Company stood at 16,245.13 million Euros.
- The number of shares issued by the CapGemini Company and currently in circulation on the stock markets stands at 169,149,580.
- The CapGemini share price is currently quoted in the Section A of the Euronext Paris stock market in France.
- The CapGemini Group is also included in the composition of the national French stock market, the CAC 40, which includes the top 40 French companies in terms of stock market capital.
- Shareholdings in the CapGemini Company are currently as follows: 5.30% are held by company employee shareholders, 4.77% by the BlackRock investment fund, 1.80% is held by the group and 0.20% is held by Mr. Paul Hermelin who is the current manager of the CapGemini Group.
To assist you in better understanding how the CapGemini share price has evolved over recent years it can be advantageous to know more about the company’s economic and financial history. Here therefore are details of recent events that have influenced the CapGemini Company and its activities:
- In 2005, the group created a subsidiary, CapGemini Consulting, to be responsible for its consulting activities. In the same year its American activities were reorganised with a change in management and the MAP plan was launched with the objective of increasing the profitability of the info management activity by reducing costs together with the development of offshore and third party maintenance activities.
- In 2007, the CapGemini Group acquired Kanbay International, an American manufacturing company that operates primarily in India, in order to strengthen its offshore operations. In the same year the group launched a strategic plan named i3 (for industrialisation, innovation and client privacy) the aim of which was to increase the profitability and duration of its activities despite the influence of economic cycles.
- In 2008, the CapGemini Group announced the buyout of the Dutch company Getronics Pink Roccade Applications Commerce Services BV for the amount of 255 million Euros.
- In 2009, CapGemini confirmed the achievement of its objectives in the first quarter which reassured its investors. In the same year the group combined its worldwide consulting services under the name CapGemini Consulting. With no less than 4,000 consultants around the world in over 30 different countries this new company looks to have a promising future. The group then launched an issue of Océane convertible bonds with a value of 500 million Euros which was greeted enthusiastically by the markets. Still in 2009 CapGemini launched an international advertising campaign through the Internet aimed at demonstrating the company’s abilities relating to client assistance during the economic crisis.
- In 2010 the group joined with the Swedish company IBX and CapGemini announced the acquisition of Strategic Systems Solutions, a company that specialised in capital markets , and the company Plaisir Informatique, a specialist in the movement of complex data in the banking and insurance sector. Still in 2010 CapGemini was merged with CPM Braxis, the largest Brazilian IT consultancy company. The company then acquired the company Thesys Technology Private Limited in India, specialised in IT services, then the German IT Services supplier, CS Consulting GmbH.
- In 2011, the group announced the total buyout of the Avantias capital, a company specialised in the implementation of ECM (Enterprise Content Management) solutions and Artesys, a supplier of IT infrastructure. In the same year it acquired Prosodie, a multi channel service operator, as well as Praxis Technology, which specialised in the public services industry in China. It finally acquired the AIVE Group, an IT services supplier.
- In 2012, the company founder, Serge Kampf, announced his departure after 45 years and was succeeded by Paul Hermelin.
- In 2013, CapGemini found itself in an excellent position to purchase the Euriware IT subsidiary company of the Areva Group against Atos and Steria. It finally managed to win the contract in 2014. Still in 2014, the group proceeded with the acquisition of Strategic Systems & Products Corp. (SSP), a solutions supplier for the oil and gas industry sector.
- In 2015, CapGemini acquired the Igate American outsourcing company, for the sum of 4 billion dollars.
- Finally, in 2017, the group announced the acquisition of the Ciber activities for the amount of 50 million dollars. This company employs 2,000 people in the United States and 1,000 people in India.
The advantages and strong points of CapGemini shares as stock market assets:
Firstly, the CapGemini Company benefits from a considerable advantage from its position on the European and indeed global markets in its activity sector. CapGemini is in fact in the top position in the sector of IT services in Europe and holds tenth position worldwide in this activity sector.
From a geographical point of view, CapGemini has also made great efforts to increase its presence worldwide, notably through a policy of decreasing its activities in Europe including the French, British and Irish markets in favour of the American market which is currently the major geographical market for this company. CapGemini also benefits from a growing presence in emerging markets such as the Asian countries.
Of course, the fact that CapGemini is specialised in IT services offers the company a certain advantageous position in relation to digital transition which is relevant to all businesses worldwide.
The group also counts on its offshore development to remain competitive against strong competition. In fact, CapGemini continues to develop its offshore growth with over 2/3 of its company in countries where the personnel costs, therefore that of production in general, are lower, such as India.
CapGemini can also count upon its expansion contracts to ensure profits for the coming years. It can thereby, for example, rework its taxation obligations with the British administration to ensure a comfortable revenue over several years.
Investors and shareholders in the CapGemini Group are also reassured by the excellent visibility offered by predicted future financial results with an order book that is higher than last year’s turnover. This is a promising indication regarding the growth of the company.
Finally, the group gains points by completing payments to investors in the form of shares in a recurring manner.
The disadvantages and weak points of CapGemini shares as stock market assets:
Firstly it should be remembered that CapGemini exercises its activities in a sector that is highly sensitive to deflation and which is also highly competitive. The group only holds tenth position worldwide and has trouble gaining new parts of the market in this context.
The finances of the group are also particularly sensitive to the personnel costs. These costs actually represent nearly 2/3 of the operating costs of the company and can therefore prove to be debilitating.
We are also disappointed by the significant slowdown in growth of the company’s activities on the American continent. This lack of growth is mainly due to a decrease in the growth of the energy markets, particularly the natural gas and oil markets. Concerning other markets the analysts have also communicated their doubts and anxiety relating to the future of the British market over the medium term and the possibilities of a recession that would directly influence the sales of CapGemini in this country.
Finally, although the group is increasingly developing its activities in other countries its presence in emerging countries is still insufficient compared to those of its major competitors that have long been present, notably in Pacific Asia where CapGemini only achieves 5% of its sales.