NSEI:TCS

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Tata Consultancy Services

Executive Summary

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. More Details

Rewards

Earnings are forecast to grow 12.8% per year

Pays a reliable dividend of 1.24%

Risk Analysis

TCS passed our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Tata Consultancy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

TCS

-2.2%

IN IT

-1.6%

IN Market


1 Year Return

21.1%

TCS

32.2%

IN IT

-2.2%

IN Market

Return vs Industry: TCS underperformed the Indian IT industry which returned 29.4% over the past year.

Return vs Market: TCS exceeded the Indian Market which returned -2.5% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day-0.8%-2.2%-1.6%
30 Day6.9%5.9%1.7%
90 Day16.8%16.3%6.2%
1 Year23.4%21.1%34.8%32.2%-0.4%-2.2%
3 Year117.8%103.4%107.4%95.2%-4.4%-9.0%
5 Year136.5%112.7%113.1%92.4%40.4%29.8%

Price Volatility Vs. Market

How volatile is Tata Consultancy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Consultancy Services undervalued compared to its fair value and its price relative to the market?

32.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCS (₹2664.85) is trading above our estimate of fair value (₹1052.35)

Significantly Below Fair Value: TCS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCS is poor value based on its PE Ratio (32.6x) compared to the IN IT industry average (18.2x).

PE vs Market: TCS is poor value based on its PE Ratio (32.6x) compared to the Indian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: TCS is overvalued based on its PB Ratio (10.5x) compared to the IN IT industry average (1.3x).


Next Steps

Future Growth

How is Tata Consultancy Services forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (12.8% per year) is above the savings rate (7.2%).

Earnings vs Market: TCS's earnings (12.8% per year) are forecast to grow slower than the Indian market (25.6% per year).

High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCS's revenue (9.7% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: TCS's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCS's Return on Equity is forecast to be high in 3 years time (33.8%)


Next Steps

Past Performance

How has Tata Consultancy Services performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (19.4%) are lower than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: TCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCS had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the IT industry average (-4.5%).


Return on Equity

High ROE: TCS's Return on Equity (32.1%) is considered high.


Next Steps

Financial Health

How is Tata Consultancy Services's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets (₹1,033.8B) exceed its short term liabilities (₹289.3B).

Long Term Liabilities: TCS's short term assets (₹1,033.8B) exceed its long term liabilities (₹86.9B).


Debt to Equity History and Analysis

Debt Level: TCS is debt free.

Reducing Debt: TCS has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: TCS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TCS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Tata Consultancy Services's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCS's dividend (1.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: TCS's dividend (1.24%) is low compared to the top 25% of dividend payers in the Indian market (2.35%).


Stability and Growth of Payments

Stable Dividend: TCS's dividends per share have been stable in the past 10 years.

Growing Dividend: TCS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49%), TCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCS's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Rajesh Gopinathan (49 yo)

3.58yrs

Tenure

₹133,794,000

Compensation

Mr. Rajesh Gopinathan, PGDM has been the Chief Executive Officer, Managing Director and Executive Director at Tata Consultancy Services Limited since February 21, 2017. Mr. Gopinathan served as the Chief F ...


CEO Compensation Analysis

Compensation vs Market: Rajesh's total compensation ($USD1.80M) is above average for companies of similar size in the Indian market ($USD1.12M).

Compensation vs Earnings: Rajesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajesh Gopinathan
CEO, MD & Executive Director3.58yrs₹133.79m0.000070%
₹ 6.9m
Venkataraman Ramakrishnan
Chief Financial Officer3.58yrs₹39.84m0.000050%
₹ 4.9m
Ganapathy Natarajan
COO & Executive Director3.58yrs₹101.17m0.0053%
₹ 520.6m
Rajendra Moholkar
Compliance Officer & Company Secretary3.5yrs₹14.00m0.000010%
₹ 987.9k
K. Krishnan
Chief Technology Officerno datano datano data
Kamal Bhadada
Head of Communicationno datano datano data
Kedar Shirali
Head of Global Investor Relationsno datano datano data
Madhav Anchan
General Counsel Legal & Corporate Affairsno datano datano data
Vivek Padiyar
Head of Corporate Communicationsno datano datano data
Rajashree R.
Chief Marketing Officerno datano datano data
Milind Lakkad
Executive VPno datano datano data
Anita Nanadikar
Head of IOT & Incubation Group and VPno datano datano data

3.6yrs

Average Tenure

59yo

Average Age

Experienced Management: TCS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajesh Gopinathan
CEO, MD & Executive Director3.58yrs₹133.79m0.000070%
₹ 6.9m
Ganapathy Natarajan
COO & Executive Director3.58yrs₹101.17m0.0053%
₹ 520.6m
Om Bhatt
Independent Non-Executive Director8.5yrs₹20.69mno data
Natarajan Chandrasekaran
Non-Independent Non-Executive Chairman3.58yrs₹420.00k0.0047%
₹ 466.3m
Pradeep Khosla
Independent Non-Executive Director2.75yrs₹14.51mno data
Daniel Callahan
Independent Non-Executive Director1.75yrs₹14.51mno data
Hanne Birgitte Breinbjerg Sorensen
Independent Non-Executive Director1.83yrs₹14.48mno data
Aarthi Subramanian
Non-Executive Director5.58yrs₹540.00k0.00015%
₹ 14.8m
Keki Mistry
Independent Non-Executive Director1.83yrs₹14.51m0.00011%
₹ 10.9m

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: TCS's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tata Consultancy Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tata Consultancy Services Limited
  • Ticker: TCS
  • Exchange: NSEI
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹9.879t
  • Shares outstanding: 3.75b
  • Website: https://www.tcs.com

Number of Employees


Location

  • Tata Consultancy Services Limited
  • TCS House
  • Raveline Street
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532540BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004
TCSNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2004

Biography

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. It operates through Banking, Financial Services and Insurance; Manufacturing; Retail and Consumer B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 12:34
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.