Hey Stephen,
I just answered a question on GIB (which I own) a few weeks ago. Here were my comments:
-------------
CGI is an underrated tech stock. It has a goal of doubling in size in 5 to 7 years (from 2021 levels) and is well diversified across not only various geographies but also verticals as well. It has a very strong management team and has performed quite well over the years. It is on track to deploy $1B in acquisitions of which it has spent upwards of $650M through the end of Fiscal 2022. It is one of the better capital allocators in the space.
This past year, it saw organic growth reach 15-yr highs as it came in at 8.5% on a constant currency basis - analysts were expecting in the mid-single-digit range. It also wasn't just one area, it was a broad and across most of its segments. The company exited the year with $24B in backlog against $12.9B in revenue and as such, is well on its way to achieving growth targets.
This is a company that typically flies under the radar. It is now trading at around 10.9x forward EV/EBITDA which is below its historical average of 11.7. All in all, it is an excellent company and I'd have no problems taking a position today.
Of note, I am long CGI Inc. and have been for many years.
------------------
In terms of an update here, it has had a solid start to the year and is now now trading closer to historical averages. That said, I'd still have no problems taking a position in the GIB.A today. Of note, the company is releasing Q1 earnings on February 1st so be mindful of taking a position around earnings as we know they can be volatile - especially tech stocks.
Mat