Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. More Details
TCS passed our risk checks.
Flawless balance sheet established dividend payer.
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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TCS's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: TCS underperformed the Indian IT industry which returned 86.6% over the past year.
Return vs Market: TCS underperformed the Indian Market which returned 67.8% over the past year.
Long-Term 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
1 week ago | Simply Wall StWe Think Shareholders May Consider Being More Generous With Tata Consultancy Services Limited's (NSE:TCS) CEO Compensation Package
3 weeks ago | Simply Wall StTata Consultancy Services (NSE:TCS) Will Pay A Larger Dividend Than Last Year At ₹15.00
1 month ago | Simply Wall StDeclining Stock and Solid Fundamentals: Is The Market Wrong About Tata Consultancy Services Limited (NSE:TCS)?
Is Tata Consultancy Services undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TCS (₹3276.35) is trading above our estimate of fair value (₹1463.12)
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 (37.8x) compared to the Indian IT industry average (30.8x).
PE vs Market: TCS is poor value based on its PE Ratio (37.8x) compared to the Indian market (21.6x).
Price to Earnings Growth Ratio
PEG Ratio: TCS is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: TCS is overvalued based on its PB Ratio (14x) compared to the IN IT industry average (1.5x).
How is Tata Consultancy Services forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TCS's forecast earnings growth (11.4% per year) is above the savings rate (6.8%).
Earnings vs Market: TCS's earnings (11.4% per year) are forecast to grow slower than the Indian market (21.1% per year).
High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.
Revenue vs Market: TCS's revenue (10.2% per year) is forecast to grow slower than the Indian market (12.7% per year).
High Growth Revenue: TCS's revenue (10.2% 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 very high in 3 years time (41.7%).
How has Tata Consultancy Services performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TCS has high quality earnings.
Growing Profit Margin: TCS's current net profit margins (19.8%) are lower than last year (20.6%).
Past Earnings Growth Analysis
Earnings Trend: TCS's earnings have grown by 6.3% per year over the past 5 years.
Accelerating Growth: TCS's earnings growth over the past year (0.3%) is below its 5-year average (6.3% per year).
Earnings vs Industry: TCS earnings growth over the past year (0.3%) underperformed the IT industry 8.2%.
Return on Equity
High ROE: TCS's Return on Equity (37.4%) is considered high.
How is Tata Consultancy Services's financial position?
Financial Position Analysis
Short Term Liabilities: TCS's short term assets (₹992.8B) exceed its short term liabilities (₹341.6B).
Long Term Liabilities: TCS's short term assets (₹992.8B) exceed its long term liabilities (₹95.0B).
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 0.2%.
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.
What is Tata Consultancy Services's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TCS's dividend (1.16%) is higher than the bottom 25% of dividend payers in the Indian market (0.37%).
High Dividend: TCS's dividend (1.16%) is low compared to the top 25% of dividend payers in the Indian market (1.56%).
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 (43.8%), 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 (76.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rajesh Gopinathan (49 yo)
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 ($USD2.78M) is above average for companies of similar size in the Indian market ($USD1.34M).
Compensation vs Earnings: Rajesh's compensation has increased by more than 20% in the past year.
Experienced Management: TCS's management team is considered experienced (4.3 years average tenure).
Experienced Board: TCS's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TCS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Tata Consultancy Services Limited's company bio, employee growth, exchange listings and data sources
- Name: Tata Consultancy Services Limited
- Ticker: TCS
- Exchange: NSEI
- Founded: 1968
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹12.119t
- Shares outstanding: 3.70b
- Website: https://www.tcs.com
Number of Employees
- Tata Consultancy Services Limited
- TCS House
- Raveline Street
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. The company operates through Banking, Financial Services and Insurance; Manufacturing; Retail and C...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/14 16:30|
|End of Day Share Price||2021/06/14 00:00|
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.