Capgemini

A profitable and cash generative business with a strong global franchise, Capgemini has a solid track record in the Software sector and has benefitted from building a strong presence in specialist areas such as the cloud, data management and analysis.

Financially, Capgemini is very strong. It has a long-term record of delivering consistent sales growth and this has driven good growth in earnings and dividends per share. A healthy balance sheet with relatively low levels of debt allows Capgemini to undertake Mergers & Acquisitions activity, invest for future growth in areas like AI as well as returning capital to shareholders.

Capgemini also scores well on many environmental or social metrics and has committed to multiple sustainability, inclusivity and diversity initiatives as well as a very comprehensive employee share ownership scheme.

Like many other tech companies, Capgemini faces scrutiny for how its products are used by customers. Some of Capgemini’s advanced digital solutions, including AI are used in defence and security applications, and the company has secured contracts with various governments.

Cybersecurity is a newer risk area for the company. The company manages sensitive personal and business data across its global operations, including client information, employee records, and government-related data.

Non-compliance with data protection regulations or breaches due to cyberattacks could result in significant fines, legal liabilities, and reputational damage. 

Operational disruptions, such as programming errors or server outages, pose risks as industries increasingly rely on centralised cloud computing services.