Close to its historical records, the title of this global player in digital technology and consulting significantly outperforms the market. One of the ways to bet on the case without taking too much risk is to take a capped Bonus.
Considered to be part of the so-called “stay at home” values, Capgemini has suffered little or nothing from the health crisis and the two periods of confinement. The teams of this global player in digital technology and consulting immediately switched to teleworking to continue delivering projects, while client companies did little to reduce their investment spending in the face of the need to accelerate their digital transformation and demonstrate greater agility in an increasingly remote environment. This is evidenced by the group’s excellent resilience in the third quarter with a limited organic decline of 3.6% in turnover to 4 billion and its growth of 18.4% at constant exchange rates including the acquisition of Altran . The performance reflects the dynamic (+ 10%) of promising businesses in the digital and cloud sectors on which the group now achieves a little less than two-thirds of its activity (60%). Despite the lack of visibility, Capgemini managed to almost renew its turnover with a new business gain of 3.9 billion, up 17.4%. Enough to confirm the objectives for the year aiming at a limited erosion of 0.6 to 0.9 point of the current operating margin for a turnover up from 12.5% to 14% (including a scope effect of 17%) and a generation of more than 900 million of free cash flow.
Reimbursed up to 128 euros
At 17.8 and 15.6 times the estimated profits for this year and 2021, the stock is not overpriced but could lack resources in the short term and incur the costs of arbitrage in favor of more cyclical stocks and up to ‘now late. A capped bonus allows you to remain exposed to Capgemini without taking too much risk. The selected certificate is issued by Société Générale with a deadline of March 26, 2021 and two terminals located at 100 euros for the lowest and 128 euros for the highest. The principle is simple: the product will be reimbursed at maturity at its bonus level of 128 euros, provided that the Capgemini share does not fall below the low limit of 100 euros by then. Given its purchase price, the product is likely to deliver a 9.2% gain in four months. For a controlled risk since in the worst case where the share actually drops below the lower limit of 100 euros of the certificate, it will still be reimbursed on the March 26, 2021 maturity at the stock market price. But be careful because the certificate does not allow you to collect dividends from the company, nor to be exposed to a further rise in the share above the bonus level of 138 euros, which is the maximum redemption price.
Our advice: buy a Capgemini capped bonus (code: FRSGE001A5M9); deadline: March 26, 2021; terminals: 100/128 euros; price: 117.16 euros; portion: 1.