Conduent
Market Cap
US$1.5b
Last Updated
2021/05/15 23:41 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CNDT's weekly volatility has decreased from 15% to 8% over the past year.
Market Performance
7 Day Return
-4.0%
CNDT
-2.5%
US IT
-1.7%
US Market
1 Year Return
300.0%
CNDT
39.0%
US IT
50.8%
US Market
Return vs Industry: CNDT exceeded the US IT industry which returned 39% over the past year.
Return vs Market: CNDT exceeded the US Market which returned 50.5% over the past year.
Shareholder returns
| CNDT | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.0% | -2.5% | -1.7% |
| 30 Day | 3.7% | -5.3% | -1.2% |
| 90 Day | 23.5% | -4.7% | 0.4% |
| 1 Year | 300.0%300.0% | 40.2%39.0% | 53.3%50.8% |
| 3 Year | -62.7%-62.7% | 91.3%84.5% | 61.5%51.4% |
| 5 Year | n/a | 200.0%179.5% | 125.9%100.7% |
Long-Term 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
2 weeks ago | Simply Wall St
Is Conduent's (NASDAQ:CNDT) 191% Share Price Increase Well Justified?1 month ago | Simply Wall St
Conduent (NASDAQ:CNDT) Might Have The Makings Of A Multi-Bagger1 month ago | Simply Wall St
What Percentage Of Conduent Incorporated (NASDAQ:CNDT) Shares Do Insiders Own?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 ($7.22) is trading below our estimate of fair value ($21.75)
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 (1.3x) compared to the US IT industry average (4.8x).
Future Growth
How is Conduent forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
79.5%
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 (-0.06% per year).
High Growth Revenue: CNDT's revenue is forecast to decline over the next 3 years (-0.06% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CNDT's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Conduent performed over the past 5 years?
-13.9%
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 13.9% 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 (19.1%).
Return on Equity
High ROE: CNDT has a negative Return on Equity (-6.11%), as it is currently unprofitable.
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 ($1.8B).
Debt to Equity History and Analysis
Debt Level: CNDT's debt to equity ratio (111.5%) is considered high.
Reducing Debt: CNDT's debt to equity ratio has increased from 21.2% to 111.5% 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 29.7% per year.
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?
1.5yrs
Average management tenure
CEO
Cliff Skelton (64 yo)
1.75yrs
Tenure
US$4,973,649
Compensation
Mr. Clifford A. Skelton, also known as Cliff, has been Chief Executive Officer of Conduent Incorporated since February 25, 2020 and serves as a Director since August 6, 2019. He has been President of Condu...
CEO Compensation Analysis
Compensation vs Market: Cliff's total compensation ($USD4.97M) is above average for companies of similar size in the US market ($USD3.78M).
Compensation vs Earnings: Cliff's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: CNDT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
Experienced Board: CNDT's board of directors are not considered experienced ( 1.4 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: CNDT 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: 2016
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$1.533b
- Shares outstanding: 212.39m
- Website: https://www.conduent.com
Number of Employees
Location
- Conduent Incorporated
- 100 Campus Drive
- Suite 200
- Florham Park
- New Jersey
- 7932
- United States
Listings
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 | 2021/05/15 23:41 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.