NasdaqGS:CNDT

Stock Analysis Report

Executive Summary

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally.


Snowflake Analysis

Fair value with imperfect 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

3.6%

CNDT

13.0%

US IT

9.9%

US Market


1 Year Return

-85.2%

CNDT

-4.2%

US IT

-11.9%

US Market

Return vs Industry: CNDT underperformed the US IT industry which returned -4.2% over the past year.

Return vs Market: CNDT underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

CNDTIndustryMarket
7 Day3.6%13.0%9.9%
30 Day-37.6%-14.8%-15.0%
90 Day-66.2%-17.2%-21.5%
1 Year-85.2%-85.2%-3.2%-4.2%-10.0%-11.9%
3 Year-87.8%-87.8%57.8%51.0%12.3%5.1%
5 Yearn/a87.3%70.8%32.5%18.1%

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 ($2.04) is trading below our estimate of fair value ($17.07)

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 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 (0.3x) compared to the US IT industry average (2.7x).


Next Steps

Future Growth

How is Conduent forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

123.0%

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 (-4.9% per year).

High Growth Revenue: CNDT's revenue is forecast to decline over the next 3 years (-4.9% 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 (12%).


Next Steps

Past Performance

How has Conduent performed over the past 5 years?

-36.6%

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 -36.6% 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 (14.3%).


Return on Equity

High ROE: CNDT has a negative Return on Equity (-134.12%), 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 ($1.2B).

Long Term Liabilities: CNDT's short term assets ($1.6B) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: CNDT's debt to equity ratio (103.8%) is considered high.

Reducing Debt: CNDT's debt to equity ratio has increased from 47.1% to 103.8% over the past 5 years.


Balance Sheet

Inventory Level: CNDT has a low level of unsold assets or inventory.

Debt Coverage by Assets: CNDT's debt is covered by short term assets (assets are 1.1x debt).


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: CNDT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CNDT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Conduent's 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 payouts.

High Dividend: Unable to evaluate CNDT's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

0.5yrs

Average management tenure


CEO

Cliff Skelton (63yo)

0.58

Tenure

Mr. Clifford A. Skelton, also known as Cliff, has been Chief Executive Officer Conduent Incorporated since February 25, 2020 and served its Interim Chief Executive Officer since August 6, 2019 until Februa ...


Leadership Team

NamePositionTenureCompensationOwnership
Brian Webb-Walsh
Chief Financial Officer4.17yrsUS$1.96m0.12% $506.8k
Clifford Skelton
CEO, President & Director0.58yrno data0.16% $691.3k
Mark Prout
Global Head of Technology & Operations0.50yrno datano data
Mario Pompeo
VP & Chief Accounting Officer0.75yrno data0.013% $57.0k
Alan Katz
Vice President of Investor Relationsno datano datano data
Michael Krawitz
Executive VP0.33yrno datano data
Burhan Jaffer
Global Head of Corporate Development2.17yrsno datano data
Tracy Yelencsics
Global Head of Marketing0.50yrno datano data
Chris Kujawa
Global Head of Human Resources0.17yrno datano data
Michael Burns
Global Head of End User Experience0.50yrno datano data

0.5yrs

Average Tenure

49yo

Average Age

Experienced Management: CNDT's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Clifford Skelton
CEO, President & Director0.58yrno data0.16% $691.3k
Nicholas Graziano
Independent Director1.83yrsUS$166.26k0.026% $111.0k
Virginia Wilson
Independent Director3.17yrsUS$305.00k0.0053% $23.0k
A. Letier
Independent Director1.25yrsUS$23.33k0.064% $275.9k
Kathy Higgins Victor
Director1.17yrsno data0.021% $92.9k
Michael Nutter
Independent Director3.17yrsUS$295.00k0.0053% $23.0k
Jesse Lynn
Independent Director0.92yrno data0.021% $89.7k
Courtney Mather
Chairman0.67yrUS$282.00k0.042% $181.2k
Margarita Paláu-Hernández
Director0.58yrno data0.021% $92.9k

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: 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:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$432.249m
  • Shares outstanding: 211.89m
  • 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
4C0BRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 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 through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services. The Transportation segment offers systems and support comprising of mission-critical mobility and payment solutions to government clients. The company also provides end-user customer experience, transaction processing, commercial healthcare, human resource, and learning services; government healthcare, payment solutions, child support and labor workforce, and federal services; and tolling, transit, photo and parking, and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated is headquartered in Florham Park, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 03:16
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.