Conduent
Market Cap
US$764.7m
Last Updated
2020/10/22 00:53 UTC
Data Sources
Company Financials +
Executive Summary
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Conduent's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNDT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.4%
CNDT
-1.4%
US IT
-1.4%
US Market
1 Year Return
-38.1%
CNDT
30.5%
US IT
17.8%
US Market
Return vs Industry: CNDT underperformed the US IT industry which returned 31.6% over the past year.
Return vs Market: CNDT underperformed the US Market which returned 18.5% over the past year.
Shareholder returns
| CNDT | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -1.4% | -1.4% |
| 30 Day | 12.3% | 3.8% | 4.7% |
| 90 Day | 86.5% | 7.1% | 8.2% |
| 1 Year | -38.1%-38.1% | 31.8%30.5% | 20.5%17.8% |
| 3 Year | -76.2%-76.2% | 91.9%84.5% | 42.2%32.7% |
| 5 Year | n/a | 151.8%131.7% | 83.4%62.7% |
Price Volatility Vs. Market
How volatile is Conduent's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Would Shareholders Who Purchased Conduent's (NASDAQ:CNDT) Stock Three Years Be Happy With The Share price Today?1 month ago | Simply Wall St
Who Has Been Buying Conduent Incorporated (NASDAQ:CNDT) Shares?1 month ago | Simply Wall St
Be Wary Of Conduent (NASDAQ:CNDT) And Its Returns On CapitalValuation
Is Conduent undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNDT ($3.66) is trading below our estimate of fair value ($12.49)
Significantly Below Fair Value: CNDT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CNDT is unprofitable, so we can't compare its PE Ratio to the US IT industry average.
PE vs Market: CNDT is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CNDT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CNDT is good value based on its PB Ratio (0.7x) compared to the US IT industry average (3.7x).
Next Steps
Future Growth
How is Conduent forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
79.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNDT is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CNDT is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CNDT is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CNDT's revenue is expected to decline over the next 3 years (-1.8% per year).
High Growth Revenue: CNDT's revenue is forecast to decline over the next 3 years (-1.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNDT's Return on Equity is forecast to be low in 3 years time (13.4%).
Next Steps
Past Performance
How has Conduent performed over the past 5 years?
-32.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNDT is currently unprofitable.
Growing Profit Margin: CNDT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CNDT is unprofitable, and losses have increased over the past 5 years at a rate of 32% per year.
Accelerating Growth: Unable to compare CNDT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CNDT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.1%).
Return on Equity
High ROE: CNDT has a negative Return on Equity (-52.92%), as it is currently unprofitable.
Next Steps
Financial Health
How is Conduent's financial position?
Financial Position Analysis
Short Term Liabilities: CNDT's short term assets ($1.6B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: CNDT's short term assets ($1.6B) do not cover its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: CNDT's debt to equity ratio (123.8%) is considered high.
Reducing Debt: CNDT's debt to equity ratio has increased from 35.4% to 123.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable CNDT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: CNDT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 52.5% per year.
Next Steps
Dividend
What is Conduent current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CNDT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CNDT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CNDT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CNDT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CNDT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Cliff Skelton (64 yo)
1.17yrs
Tenure
US$4,341,919
Compensation
Mr. Clifford A. Skelton, also known as Cliff, has been Chief Executive Officer Conduent Incorporated since February 25, 2020 and serves as a Director since August 6, 2019. He served as Interim Chief Execut ...
CEO Compensation Analysis
Compensation vs Market: Cliff's total compensation ($USD4.34M) is above average for companies of similar size in the US market ($USD2.85M).
Compensation vs Earnings: Insufficient data to compare Cliff's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.17yrs | US$4.34m | 1.06% $ 8.1m | |
| Executive VP & CFO | 4.75yrs | US$1.49m | 0.41% $ 3.1m | |
| Executive VP | 0.92yr | US$234.74k | 0.25% $ 1.9m | |
| Executive VP | 1.33yrs | US$671.30k | 0.0016% $ 12.2k | |
| Global Head of Technology & Operations | no data | no data | no data | |
| Global Head of Operations & Transformation | 0.17yr | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Global Head of Corporate Development | 2.75yrs | no data | no data | |
| Global Head of Marketing | 1.08yrs | no data | no data | |
| Global Head of Human Resources | 0.75yr | no data | no data | |
| Global Head of BPS/Transaction Processing | 1.08yrs | no data | no data | |
| Chief Revenue Officer | 0.75yr | no data | no data |
1.1yrs
Average Tenure
50yo
Average Age
Experienced Management: CNDT's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.17yrs | US$4.34m | 1.06% $ 8.1m | |
| Independent Director | 1.83yrs | US$292.50k | 0.054% $ 410.3k | |
| Independent Director | 1.17yrs | US$115.83k | 0.00096% $ 7.3k | |
| Independent Director | 0.42yr | no data | 0.027% $ 207.6k | |
| Director | 0.17yr | no data | no data | |
| Independent Director | 1.5yrs | US$219.00k | 0.021% $ 160.7k | |
| Independent Chairman | 1.25yrs | US$346.67k | 0% $ 0 | |
| Independent Director | 1.17yrs | US$117.00k | 0% $ 0 |
1.2yrs
Average Tenure
61yo
Average Age
Experienced Board: CNDT's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Conduent Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Conduent Incorporated
- Ticker: CNDT
- Exchange: NasdaqGS
- Founded:
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$764.730m
- Shares outstanding: 209.23m
- Website: https://www.conduent.com
Number of Employees
Location
- Conduent Incorporated
- 100 Campus Drive
- Suite 200
- Florham Park
- New Jersey
- 7932
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNDT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 2016 |
| 4C0 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2016 |
Biography
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates thro ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/22 00:53 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.