NasdaqGS:CNDT

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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


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

CNDTIndustryMarket
7 Day2.4%-1.4%-1.4%
30 Day12.3%3.8%4.7%
90 Day86.5%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 Yearn/a151.8%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

Valuation

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

NamePositionTenureCompensationOwnership
Clifford Skelton
CEO & Director1.17yrsUS$4.34m1.06%
$ 8.1m
Brian Webb-Walsh
Executive VP & CFO4.75yrsUS$1.49m0.41%
$ 3.1m
Michael Krawitz
Executive VP0.92yrUS$234.74k0.25%
$ 1.9m
Mark Brewer
Executive VP1.33yrsUS$671.30k0.0016%
$ 12.2k
Mark Prout
Global Head of Technology & Operationsno datano datano data
Adam Appleby
Global Head of Operations & Transformation0.17yrno datano data
Alan Katz
Vice President of Investor Relationsno datano datano data
Burhan Jaffer
Global Head of Corporate Development2.75yrsno datano data
Tracy Yelencsics
Global Head of Marketing1.08yrsno datano data
Chris Kujawa
Global Head of Human Resources0.75yrno datano data
Dharma Rajagopalan
Global Head of BPS/Transaction Processing1.08yrsno datano data
Lou Keyes
Chief Revenue Officer0.75yrno datano 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

NamePositionTenureCompensationOwnership
Clifford Skelton
CEO & Director1.17yrsUS$4.34m1.06%
$ 8.1m
A. Letier
Independent Director1.83yrsUS$292.50k0.054%
$ 410.3k
Kathy Higgins Victor
Independent Director1.17yrsUS$115.83k0.00096%
$ 7.3k
Michael Montelongo
Independent Director0.42yrno data0.027%
$ 207.6k
Hunter Gary
Director0.17yrno datano data
Jesse Lynn
Independent Director1.5yrsUS$219.00k0.021%
$ 160.7k
Courtney Mather
Independent Chairman1.25yrsUS$346.67k0%
$ 0
Margarita Palau-Hernandez
Independent Director1.17yrsUS$117.00k0%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNDTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2016
4C0DB (Deutsche Boerse AG)YesCommon StockDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:53
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.