Capgemini SE: history, ownership, mission, how it works & makes money

A Brief History of Capgemini SE

Capgemini SE, founded in 1967 by Serge Kampf, initially operated under the name of Sogeti. The company focused on providing data processing services. In 1975, Sogeti merged with a French company called Cap Gemini, marking the beginning of the Capgemini brand as we know it today.

Throughout the late 20th century, Capgemini expanded both organically and through acquisitions. Notable acquisitions include the purchase of the consulting firm Gemini in 2000 and the acquisition of Ernst & Young's consulting division in 2000, which significantly enhanced its consulting capabilities.

In 2005, Capgemini became a public company. The company reported revenue of approximately €8.3 billion in 2006. This marked a substantial growth trajectory. By 2010, revenues had climbed to €9.6 billion. The company's global reach expanded through numerous mergers and acquisitions, including the purchase of the UK-based consultancy iGate in 2015.

In 2019, Capgemini announced its acquisition of Altran, a leading engineering and R&D services provider, for approximately €3.6 billion. This acquisition positioned Capgemini as a leader in the engineering services domain.

The company has continued to show robust financial performance. According to its Q3 2023 earnings report, Capgemini achieved a revenue of €6.2 billion, representing an increase of 10.5% year-over-year. The gross margin for Q3 2023 was reported at 30.9%, showcasing effective cost management.

As of October 2023, Capgemini employs over 325,000 people across more than 50 countries. The company operates in various sectors, including financial services, healthcare, and public sector, continuously adapting to the evolving digital landscape.

Capgemini's market capitalization has fluctuated around €35 billion as of late 2023. The company aims to achieve a revenue target of €30 billion by 2025, demonstrating its strong focus on growth through digital transformation and strategic acquisitions.

A Who Owns Capgemini SE

Capgemini SE is a global leader in consulting, technology services, and digital transformation. As of October 2023, the ownership of Capgemini SE is distributed among various institutional and individual shareholders, with the largest shareholders being investment management firms and other financial institutions.

The majority of Capgemini SE's shares are held by institutional investors, which account for approximately 65.65% of total ownership. The remaining shares are distributed among retail investors and individual shareholders, amounting to about 13.00%.

As of the latest reports, Capgemini's market capitalization stands at approximately €40 billion, with a total share count of roughly 143 million shares. The company's stock performance has shown resilience, with a year-to-date increase of about 18%.

Capgemini also maintains a strategic focus on acquisitions to enhance its service offerings. Recent acquisitions have included the purchase of companies like Altran in 2020 for approximately €3.6 billion, significantly increasing its technological and engineering capabilities.

Furthermore, Capgemini's annual revenue for the fiscal year 2022 was reported at €22 billion, reflecting a growth rate of 21% compared to the previous year, driven by strong demand for digital transformation solutions across various sectors.

The firm operates in over 50 countries and employs more than 300,000 professionals worldwide, indicating not just a wide geographical footprint but also a diverse workforce capable of delivering tailored solutions to clients globally.

Capgemini SE Mission Statement

Capgemini SE is a global leader in consulting, digital transformation, technology, and engineering services. The company's mission statement emphasizes its commitment to driving innovation and helping organizations harness the power of technology to achieve their goals. Their mission can be encapsulated in three key pillars: digital transformation, sustainability, and workforce empowerment.

As of 2023, Capgemini's mission focuses on leveraging cutting-edge technology to create value for clients across various industries. The aim is to enable businesses to adapt to the changing landscape by utilizing digital tools and methodologies. This approach is integral to their strategy of fostering long-term partnerships with customers.

The company also places a strong emphasis on sustainability, reflecting a broad commitment to corporate social responsibility. Capgemini's sustainability initiatives aim to reduce their carbon footprint and assist clients in integrating sustainable practices into their operations. According to their 2022 sustainability report, Capgemini has set a target to achieve carbon neutrality by 2025 and aims to reduce scope 1 and 2 emissions by 50% by the same year.

Workforce empowerment is another critical aspect of their mission. Capgemini is dedicated to creating an inclusive and diverse workplace that fosters innovation. In 2023, they reported that women represented 36% of their global workforce, with a goal to increase this percentage to 40% by 2025.

In 2022, Capgemini reported revenue of approximately €18 billion, indicating steady growth driven by their mission-centric approach. The financial year ending December 31, 2022, showed an increase in net income to about €1.1 billion, with an operating margin of 11.2%.

Additionally, Capgemini is strongly positioned in the market, ranking among the top global consulting firms. Their commitment to their mission is further reflected in their extensive global reach, with over 350,000 employees working in more than 50 countries. This workforce diversity is crucial for driving innovation and creativity, aligning with their mission to empower talent and shape the future through technology.

The company's dedication to sustainability also resonates with its stakeholders, as seen in their shareholder satisfaction rates, which reflect a 82% approval rating in the most recent investor relations survey. This strong alignment with stakeholder values not only supports their mission but also enhances trust and loyalty.

Capgemini's mission statement is not just a declaration; it drives the strategic direction of the company, ensuring that every initiative and investment aligns with these foundational goals. The pursuit of digital innovation, sustainability efforts, and workforce empowerment remains central to Capgemini's identity as a leader in the consulting and technology space.

How Capgemini SE Works

Capgemini SE is a global leader in consulting, technology services, and digital transformation. As of 2023, the company operates in over 50 countries, employing more than 350,000 professionals.

The company segments its operations into five key service lines: consulting, technology services, digital services, operations services, and engineering services. The breakdown of revenue by service line for the fiscal year 2022 is as follows:

Capgemini's consulting services help clients optimize their business processes, enhance customer experience, and drive innovation. In contrast, its technology services focus on digital transformation through IT infrastructure, application services, and automation technologies.

The company's digital services include emerging technologies like AI, cloud computing, and cybersecurity, which are increasingly prioritized by many businesses. For example, in 2022, the digital services segment reported a growth of 25% year-over-year.

Capgemini is also known for its commitment to sustainability and social responsibility. In 2022, they achieved a reduction of 30% in CO2 emissions per employee compared to the previous year, in line with their goal to become a net-zero company by 2030.

Financial performance indicators for Capgemini SE as of Q3 2023 are as follows:

Capgemini has established a strong market presence through strategic acquisitions and partnerships. Notably, the acquisition of Altran in 2020 enhanced their engineering services capabilities and expanded their geographical reach.

The company's stock performance also reflects its robust business model. As of October 2023, Capgemini's stock price is approximately 200 €, representing an increase of 12% year-to-date. The stock is listed on the Euronext Paris under the ticker symbol CAP.

In summary, Capgemini SE operates through a diversified portfolio of services, with a strong focus on technology and digital transformation, backed by significant financial performance and sustainability initiatives.

How Capgemini SE Makes Money

Capgemini SE generates revenue through a diverse range of services primarily focused on consulting, technology services, and outsourcing. The company operates globally, with its revenue streams segmented into several key areas.

1. Revenue Segmentation

For the fiscal year 2022, Capgemini reported total revenue of €23.2 billion. This represents an increase of 21% compared to the previous year. The breakdown of revenues by service line is as follows:

2. Geographic Revenue Distribution

Capgemini's revenue is also distributed across different geographical regions. In 2022, the geographic breakdown was as follows:

3. Consulting Services

Within the consulting segment, Capgemini focuses on strategy, transformation, and operational consulting. In 2022, the consulting revenue grew by 25%, driven by digital transformation projects and increased demand for advisory services. Key industries served include:

• Financial Services
• Consumer Products
• Healthcare
• Telecommunications
• Manufacturing

4. Technology Services

Technology services encompass application services, cloud services, and technology consulting. In the same fiscal year, this segment contributed 42% of total revenue. The company has seen a significant push towards cloud technology and automation, which are expected to be growth drivers moving forward.

5. Outsourcing Services

Capgemini's outsourcing services include IT and business process outsourcing. In 2022, this segment's revenue grew by 15%, reflecting greater reliance on managed services by clients. The outsourcing portfolio is expanding in areas such as robotic process automation and cybersecurity.

6. Client Base

Capgemini serves a diverse client base, including more than 400 of the Fortune 500 companies. Notable clients include major firms in industries such as automotive, banking, and energy, which account for a considerable portion of Capgemini's business.

7. Recent Financial Performance

In the first half of 2023, Capgemini recorded revenue of €12.2 billion, reflecting a 20% year-over-year increase. The operating margin was reported at 12%, showcasing effective cost management amidst rising global competition.

8. Shareholder Returns

Capgemini has been consistent in returning value to its shareholders. The dividend payout for 2022 was €2.50 per share, representing a dividend yield of 1.2% based on the closing share price at year-end.

In 2023, as of August, the share price was approximately €210, marking a 30% increase year-to-date, reflecting positive market sentiment and growth prospects following the company's continued focus on innovation and strategic acquisitions.

Through a combination of consulting, technology services, and outsourcing, along with a strong geographic presence and a focus on key industries, Capgemini SE continues to demonstrate robust financial growth and resilience in a competitive landscape.