CGI Inc. (GIB): history, ownership, mission, how it works & makes money

A Brief History of CGI Inc. (GIB)

Founding and Early Years

CGI Inc. was founded in 1976 by Serge Godin and André Imbeau in Quebec City, Canada. The company originally operated as a small IT consultancy firm, focusing on providing services to local businesses.

Initial Public Offering

In 1986, CGI went public on the Toronto Stock Exchange (TSE) under the ticker symbol GIB. At the time, CGI's market capitalization was approximately $34 million.

Expansion through Acquisitions

Throughout the 1990s and 2000s, CGI expanded significantly through numerous acquisitions. Some notable acquisitions include:

• Acquisition of IMR Global Corporation in 2004 for $1.1 billion.
• Acquisition of FSTE/PSA in 2005, enhancing CGI's presence in the UK.
• Acquisition of Logica in 2012 for approximately $2.7 billion.

Global Presence

As of 2023, CGI operates in over 40 countries and has a workforce exceeding 88,000 employees.

Financial Performance

For the fiscal year ended September 30, 2022, CGI reported:

Recent Developments

In 2023, CGI announced plans for a new delivery center in India, aimed at enhancing its capability to provide digital services globally. The company is investing approximately $100 million in this initiative.

Stock Performance

As of October 2023, CGI's stock was trading at approximately $96.50 on the Toronto Stock Exchange. The company has experienced a 20% increase in stock price over the past year.

Corporate Social Responsibility

CGI has committed to several sustainability initiatives, targeting to reduce greenhouse gas emissions by 30% by 2025. In 2022, CGI reported a 25% reduction in its carbon footprint compared to its 2018 baseline.

A Who Owns CGI Inc. (GIB)

Ownership Structure

As of the latest available data, CGI Inc. (GIB) has a diverse ownership structure consisting of institutional investors, retail investors, and company insiders.

Major Shareholders

Insider Ownership

The insider ownership of CGI Inc. includes executives and board members. The following table details the significant insiders and their respective ownership percentages.

Market Capitalization

CGI Inc. has a market capitalization of approximately $22.4 billion as of the latest trading data.

Stock Performance

The stock performance of CGI Inc. shows a consistent upward trend over the last year. The following table presents key financial metrics related to its stock.

Summary of Shareholder Votes

CGI Inc. also holds annual meetings where shareholders vote on key company decisions. In the last meeting, the results were as follows:

CGI Inc. (GIB) Mission Statement

Company Overview

CGI Inc. (GIB) is a global IT and business consulting services firm headquartered in Montreal, Canada. As of 2023, the company reported revenues of approximately $12.16 billion for the fiscal year ending September 30, 2022. With over 88,000 professionals across 400 locations worldwide, CGI aims to deliver superior business results to its clients.

Mission Statement

The mission of CGI is to help clients achieve their business objectives through innovative technology solutions and services. CGI is committed to building long-term partnerships with its clients, ensuring they receive the highest level of service and value.

Core Values

• Integrity: CGI emphasizes a strong ethical foundation in all its operations.
• Client-Centricity: The client’s interests are at the heart of CGI's mission.
• Innovation: Continuous improvement and innovation are integral to the service offering.
• Collaboration: CGI fosters teamwork at all levels to drive results.
• Respect: CGI values and respects its clients, employees, and communities.

Strategic Goals

CGI's strategic goals align with its mission statement:

• Enhance Client Experience: Deliver personalized services to meet specific client needs.
• Expand Global Footprint: Increase presence and capabilities in emerging markets.
• Invest in Innovation: Allocate funds for research and development to stay ahead of technological trends.
• Foster Sustainability: Implement sustainable practices in operations to minimize environmental impact.

Financial Performance

CGI has shown robust financial performance in recent years, with a net income of approximately $1.09 billion for the fiscal year ending September 30, 2022. The company's operating margin stood at 15.5%, reflecting effective cost management and operational efficiency.

Key Markets

CGI operates across several key industries:

• Government: Providing services for federal, state, and local agencies.
• Financial Services: Supporting banking, insurance, and capital markets.
• Health Care: Delivering solutions to improve patient care and operational efficiency.
• Manufacturing: Enhancing production processes through technology.
• Telecommunications: Offering innovative solutions for network operators.

Community Impact

CGI also focuses on community engagement, with initiatives such as:

• Volunteering: Employees contribute hours towards community service.
• Educational Programs: CGI supports STEM education through scholarships and partnerships.
• Sustainability Initiatives: Reducing carbon footprint and promoting eco-friendly practices.

Conclusion of the Mission Statement

CGI Inc.'s mission statement encapsulates its dedication to client success, innovation, and responsible corporate citizenship, contributing to its position as a leader in the IT and business consulting space.

How CGI Inc. (GIB) Works

Company Overview

CGI Inc. (GIB) operates as a global information technology (IT) and business consulting services firm. As of fiscal year 2022, CGI reported revenues of $12.16 billion. The company offers a range of services including IT outsourcing, systems integration, and consulting.

Business Model

CGI's business model is built on delivering end-to-end services to clients across various industries. The company employs approximately 88,000 professionals in over 400 locations worldwide. Key sectors include:

• Government
• Healthcare
• Financial Services
• Manufacturing
• Telecommunications

Revenue Streams

CGI generates revenue through multiple streams:

• Consulting Services
• Managed Services
• Systems Integration
• Application Management

In fiscal year 2022, revenue breakdown by service was:

Market Presence

As of 2023, CGI operates in 40 countries and serves clients in more than 25 industries. The company is listed on the Toronto Stock Exchange under the ticker symbol GIB.A and the New York Stock Exchange as GIB.

CGI's market capitalization as of late September 2023 stood at approximately $18 billion.

Strategic Initiatives

CGI focuses on strategic initiatives to foster growth:

• Enhancing digital transformation capabilities
• Increasing investments in artificial intelligence (AI) and automation
• Expanding cloud services

Financial Performance

For the fiscal year 2022, CGI reported:

Client Engagement

CGI engages with clients through a variety of methods:

• Dedicated account teams
• Collaborative project management
• Performance-based contracts

Technological Investments

CGI has made significant investments in technology and innovation, focusing on:

• Cybersecurity solutions
• Data analytics platforms
• Internet of Things (IoT) applications

In 2022, CGI allocated $500 million towards R&D and technology enhancements.

Corporate Social Responsibility

CGI emphasizes corporate social responsibility (CSR) in its operations, focusing on sustainability and community involvement. The company reported a goal to reduce greenhouse gas emissions by 30% by 2030.

Recent Developments

As of 2023, CGI has acquired several firms to bolster its service offerings, including:

• Acquisition of a leading cybersecurity firm for $350 million in early 2023
• Partnership with a cloud service provider to enhance cloud offerings

Employee Engagement

CGI invests in employee engagement and development, with over 75% employee engagement rate reported in 2022. The company provides numerous training programs and career development opportunities.

How CGI Inc. (GIB) Makes Money

Revenue Streams

CGI Inc. primarily generates revenue through IT and business consulting services, systems integration, and managed IT services. In fiscal year 2022, the company's revenue was approximately $12.2 billion.

Consulting Services

Consulting services account for a significant portion of CGI's revenue. In 2022, this segment represented around 45% of total revenue, amounting to approximately $5.49 billion.

• Management Consulting
• Technology Consulting
• Business Process Services

Systems Integration

The systems integration segment contributed about 35% to CGI's revenue in 2022, totaling approximately $4.27 billion.

• Application Development
• Systems Architecture
• Cloud Services

Managed IT Services

Managed IT services comprised roughly 20% of CGI's total revenue, equating to approximately $2.44 billion in 2022.

• Infrastructure Management
• Network Services
• End-User Support

Geographical Revenue Distribution

CGI operates globally, with a diversified geographical revenue distribution. In 2022, North America accounted for approximately 65% of total revenue, while Europe represented about 30%, and the rest of the world 5%.

Strategic Acquisitions

CGI's revenue growth strategy includes strategic acquisitions. In 2022, CGI acquired a total of 5 companies, which contributed an additional 2% to revenue growth, approximately $244 million.

Recurring Revenue Model

CGI implements a recurring revenue model, especially within its managed IT services. As of 2022, recurring revenue was estimated at 50% of total revenue, equating to approximately $6.1 billion.

Financial Performance Metrics

CGI has shown robust financial performance with a steady increase in net income. For the fiscal year 2022, the net income was approximately $1.2 billion, representing a net profit margin of 9.84%.

Market Position

As of 2022, CGI Inc. ranked among the top 5 IT consulting firms in North America, competing closely with companies such as Accenture and Deloitte.