Cognizant Technology Solutions
Market Cap
US$33.3b
Last Updated
2019/10/23 23:33 UTC
Data Sources
Company Financials +
Executive Summary
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide.
Snowflake
Fundamentals
Solid track record with excellent balance sheet.
Similar Companies
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
Market Performance
7 Day Return
-1.7%
CTSH
-4.1%
US IT
0.4%
US Market
1 Year Return
-14.0%
CTSH
20.6%
US IT
11.4%
US Market
Return vs Industry: CTSH underperformed the US IT industry which returned 20.6% over the past year.
Return vs Market: CTSH underperformed the US Market which returned 11.4% over the past year.
Shareholder returns
| CTSH | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -4.1% | 0.4% |
| 30 Day | -0.8% | -3.2% | 0.3% |
| 90 Day | -8.3% | -8.0% | -1.2% |
| 1 Year | -12.9%-14.0% | 21.9%20.6% | 13.9%11.4% |
| 3 Year | 21.8%18.6% | 88.8%81.1% | 47.2%37.6% |
| 5 Year | 32.6%29.2% | 134.9%113.5% | 62.4%44.6% |
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
1 week ago | Simply Wall St
Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?2 weeks ago | Simply Wall St
Do Cognizant Technology Solutions's (NASDAQ:CTSH) Earnings Warrant Your Attention?1 month ago | Simply Wall St
Is There An Opportunity With Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) 23% Undervaluation?Valuation
Is Cognizant Technology Solutions undervalued compared to its fair value and its price relative to the market?
24.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTSH ($60.35) is trading below our estimate of fair value ($79.52)
Significantly Below Fair Value: CTSH is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CTSH is good value based on its PE Ratio (16.7x) compared to the IT industry average (36.5x).
PE vs Market: CTSH is good value based on its PE Ratio (16.7x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: CTSH is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: CTSH is good value based on its PB Ratio (3.2x) compared to the US IT industry average (4.2x).
Next Steps
Future Growth
How is Cognizant Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTSH's forecast earnings growth (9.6% per year) is above the savings rate (2.7%).
Earnings vs Market: CTSH's earnings (9.6% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: CTSH's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTSH's revenue (6.2% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: CTSH's revenue (6.2% 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 high in 3 years time (21.1%)
Next Steps
Past Performance
How has Cognizant Technology Solutions performed over the past 5 years?
5.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CTSH's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: CTSH's earnings growth over the past year (42.8%) exceeds its 5-year average (5.7% per year).
Earnings vs Industry: CTSH earnings growth over the past year (42.8%) exceeded the IT industry 9.8%.
Return on Equity
High ROE: CTSH's Return on Equity (19.7%) is considered low.
Return on Assets
ROA vs Industry: CTSH has a higher Return on Assets than the IT industry average last year.
Return on Capital Employed
ROCE Improving: CTSH has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Cognizant Technology Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: CTSH's short term assets ($7.2B) exceeds its short term liabilities ($2.8B)
Long Term Liabilities: CTSH's short term assets (7.2B) exceeds its long term liabilities (2.1B)
Debt to Equity History and Analysis
Debt Level: CTSH's debt to equity ratio (7.1%) is considered satisfactory
Reducing Debt: Insufficient data to determine if CTSH's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CTSH's debt is well covered by operating cash flow (322.8%).
Interest Coverage: CTSH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: CTSH has a low level of unsold assets or inventory.
Debt Coverage by Assets: CTSH's debt is covered by short term assets (assets are 9.7x debt).
Next Steps
Dividend
What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?
1.33%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CTSH's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: CTSH's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.1%), 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 (28.3% payout ratio).
Next Steps
Management
What is the CEO of Cognizant Technology Solutions's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Brian Humphries (45yo)
0.5yrs
Tenure
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 ...
Management Age and Tenure
3.2yrs
Average Tenure
53yo
Average Age
Experienced Management: CTSH's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
3.8yrs
Average Tenure
58.5yo
Average Age
Experienced Board: CTSH's board of directors are considered experienced (3.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive President of Cognizant Digital Business |
| Shares | 100 |
| Max Price | US$72.58 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 19,000 |
| Max Price | US$61.09 |
| Entity | Individual |
| Shares | 19,664 |
| Max Price | US$71.62 |
| Entity | Individual |
| Shares | 3,014 |
| Max Price | US$71.75 |
| Entity | Individual |
| Shares | 20,000 |
| Max Price | US$72.00 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | US$72.50 |
| Entity | Individual |
| Shares | 1,654 |
| Max Price | US$69.00 |
Ownership Breakdown
Management Team
Larry Bridge
Senior VP of Healthcare Strategy & Corporate Development
- Tenure: 0yrs
Brian Humphries (45yo)
CEO & Director
- Tenure: 0.5yrs
Malcolm Frank (52yo)
President of Cognizant Digital Business
- Tenure: 0.8yrs
- Compensation: US$4.68m
Matt Friedrich (52yo)
Executive VP
- Tenure: 2.4yrs
- Compensation: US$6.98m
Karen McLoughlin (54yo)
Chief Financial Officer
- Tenure: 7.7yrs
- Compensation: US$5.52m
Katie Royce
Global Head of Investor Relations
- Tenure: 0yrs
Dharmendra Sinha (56yo)
Executive VP & President of Global Client Services
- Tenure: 5.8yrs
- Compensation: US$3.16m
Srinivasan Veeraraghavachary (59yo)
Executive VP & Chief Operating Officer
- Tenure: 3.2yrs
Santosh Thomas (50yo)
Executive VP & President of Global Growth Markets
- Tenure: 3.2yrs
James Lennox (54yo)
Executive VP & Chief People Officer
- Tenure: 3.8yrs
Board Members
Frank D'Souza (50yo)
Executive Vice Chairman
- Tenure: 1.3yrs
- Compensation: US$14.09m
John Klein (77yo)
Independent Director
- Tenure: 21.6yrs
- Compensation: US$478.48k
John Fox (76yo)
Independent Director
- Tenure: 11.8yrs
- Compensation: US$331.48k
Michael Patsalos-Fox (66yo)
Independent Chairman
- Tenure: 1.1yrs
- Compensation: US$443.10k
Leo Mackay (57yo)
Independent Director
- Tenure: 7.1yrs
- Compensation: US$311.98k
Maureen Breakiron-Evans (64yo)
Independent Director
- Tenure: 10.4yrs
- Compensation: US$344.48k
Brian Humphries (45yo)
CEO & Director
- Tenure: 0.5yrs
John Dineen (56yo)
Independent Director
- Tenure: 2.5yrs
- Compensation: US$324.42k
Jonathan Chadwick (53yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: US$313.48k
Zein Abdalla (60yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$326.96k
Company Information
Cognizant Technology Solutions Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cognizant Technology Solutions Corporation
- Ticker: CTSH
- Exchange: NasdaqGS
- Founded: 1994
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$33.331b
- Shares outstanding: 552.29m
- Website: https://www.cognizant.com
Number of Employees
Location
- Cognizant Technology Solutions Corporation
- Glenpointe Centre West
- 500 Frank West Burr Boulevard
- Teaneck
- New Jersey
- 7666
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CTSH | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Jun 1998 |
| COZ | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jun 1998 |
| CTSH | SWX (SIX Swiss Exchange) | Yes | Class A Common Stock | CH | CHF | Jun 1998 |
| 0QZ5 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Jun 1998 |
| CTSH * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Jun 1998 |
| CTSH | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Jun 1998 |
| CTSH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 1 COM CL'A' USD0.01 | BR | BRL | Apr 2016 |
Biography
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Se ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:33 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.