MarketCall Top Picks : CGI Brian Madden's MarketCall Top Picks
Third in the segment
https://www.bnnbloomberg.ca/market-call/brian-madden-s-top-picks~2334612
CGI (GIB/A TSX)
CGI Group is Canada’s largest IT services firm, providing systems integration, business process outsourcing and consulting solutions across a wide array of verticals, including government, banking, telecommunications, energy, utilities, manufacturing and retailing.
The company is accelerating its organic growth and also achieved record operating margins in fiscal 2021 despite tight labour markets, continuing a decade long string of steady margin improvement.
With an underleveraged balance sheet and a long history of making highly accretive acquisitions, the company is actively closing and integrating small to mid-sized transactions and remains on the hunt for a larger transformational deal to further fuel their growth. With a 5-year compound earnings growth rate of 9 per cent and similar growth expected in 2022, we see good value and growth prospects in the shares which trade at 18x earnings.