Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. More Details
No risks detected for CTSH from our risk checks.
Flawless balance sheet and good value.
Share Price & News
How has Cognizant Technology Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CTSH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CTSH's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CTSH underperformed the US IT industry which returned 58.8% over the past year.
Return vs Market: CTSH underperformed the US Market which returned 53.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Cognizant Technology Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall StIs It Time To Consider Buying Cognizant Technology Solutions Corporation (NASDAQ:CTSH)?
2 weeks ago | Simply Wall StRead This Before Buying Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Shares
1 month ago | Simply Wall StThe Cognizant Technology Solutions (NASDAQ:CTSH) Share Price Is Up 64% And Shareholders Are Holding On
Is Cognizant Technology Solutions undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTSH ($80.62) is trading below our estimate of fair value ($103.12)
Significantly Below Fair Value: CTSH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CTSH is good value based on its PE Ratio (31.3x) compared to the US IT industry average (39.7x).
PE vs Market: CTSH is poor value based on its PE Ratio (31.3x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: CTSH is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: CTSH is good value based on its PB Ratio (3.9x) compared to the US IT industry average (5.3x).
How is Cognizant Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTSH's forecast earnings growth (14.6% per year) is above the savings rate (2%).
Earnings vs Market: CTSH's earnings (14.6% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: CTSH's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTSH's revenue (5.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: CTSH's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CTSH's Return on Equity is forecast to be low in 3 years time (15.3%).
How has Cognizant Technology Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTSH has high quality earnings.
Growing Profit Margin: CTSH's current net profit margins (8.4%) are lower than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: CTSH's earnings have grown by 1.3% per year over the past 5 years.
Accelerating Growth: CTSH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CTSH had negative earnings growth (-24.4%) over the past year, making it difficult to compare to the IT industry average (8.4%).
Return on Equity
High ROE: CTSH's Return on Equity (12.8%) is considered low.
How is Cognizant Technology Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: CTSH's short term assets ($6.9B) exceed its short term liabilities ($3.5B).
Long Term Liabilities: CTSH's short term assets ($6.9B) exceed its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: CTSH's debt to equity ratio (6.5%) is considered satisfactory.
Reducing Debt: CTSH's debt to equity ratio has reduced from 13.8% to 6.5% over the past 5 years.
Debt Coverage: CTSH's debt is well covered by operating cash flow (470.6%).
Interest Coverage: CTSH earns more interest than it pays, so coverage of interest payments is not a concern.
What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CTSH's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: CTSH's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CTSH has been paying a dividend for less than 10 years.
Growing Dividend: CTSH's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.1%), CTSH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CTSH's dividends in 3 years are forecast to be well covered by earnings (26% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Humphries (46 yo)
Mr. Brian Humphries has been Chief Executive Officer and Director of Cognizant Technology Solutions Corporation since April 1, 2019. Mr. Humphries served as the Chief Executive Officer of Vodafone Business...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD15.96M) is above average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.
Experienced Management: CTSH's management team is considered experienced (3.9 years average tenure).
Experienced Board: CTSH's board of directors are considered experienced (3.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cognizant Technology Solutions Corporation's company bio, employee growth, exchange listings and data sources
- Name: Cognizant Technology Solutions Corporation
- Ticker: CTSH
- Exchange: NasdaqGS
- Founded: 1994
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$43.535b
- Shares outstanding: 530.61m
- Website: https://www.cognizant.com
Number of Employees
- Cognizant Technology Solutions Corporation
- 300 Frank West Burr Boulevard
- New Jersey
- United States
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. The company operates...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/17 22:05|
|End of Day Share Price||2021/04/16 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.