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CTSH

Cognizant Technology SolutionsNasdaqGS:CTSH Stock Report

Market Cap

US$39.6b

7D

0.5%

1Y

15.3%

Updated

23 Sep, 2021

Data

Company Financials +
CTSH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends2/6

CTSH Overview

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.

Cognizant Technology Solutions Competitors

Accenture

NYSE:ACN

US$212.2b

International Business Machines

NYSE:IBM

US$120.7b

Globant

NYSE:GLOB

US$13.4b

Amdocs

NasdaqGS:DOX

US$9.7b

Price History & Performance

Summary of all time highs, changes and price drops for Cognizant Technology Solutions
Historical stock prices
Current Share PriceUS$77.15
52 Week HighUS$65.58
52 Week LowUS$82.73
Beta1.16
1 Month Change-1.10%
3 Month Change9.45%
1 Year Change15.32%
3 Year Change0.51%
5 Year Change40.27%
Change since IPO36,931.70%

Recent News & Updates

Shareholder Returns

CTSHUS ITUS Market
7D0.5%0.7%-0.5%
1Y15.3%30.5%37.5%

Return vs Industry: CTSH underperformed the US IT industry which returned 27.8% over the past year.

Return vs Market: CTSH underperformed the US Market which returned 36.2% over the past year.

Price Volatility

Is CTSH's price volatile compared to industry and market?
CTSH volatility
CTSH Beta1.16
Industry Beta1.18
Market Beta1

Stable Share Price: CTSH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CTSH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994301,200Brian Humphrieshttps://www.cognizant.com

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; and enhanced compliance, integrated health management, claims investigative services, and patient experience, as well as services that drive operational improvements in areas, such as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies.

Cognizant Technology Solutions Fundamentals Summary

How do Cognizant Technology Solutions's earnings and revenue compare to its market cap?
CTSH fundamental statistics
Market CapUS$39.62b
Earnings (TTM)US$1.68b
Revenue (TTM)US$17.41b

24.1x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTSH income statement (TTM)
RevenueUS$17.41b
Cost of RevenueUS$10.89b
Gross ProfitUS$6.53b
ExpensesUS$4.84b
EarningsUS$1.68b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.16
Gross Margin37.47%
Net Profit Margin9.65%
Debt/Equity Ratio6.1%

How did CTSH perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

29%

Payout Ratio

Valuation

Is Cognizant Technology Solutions undervalued compared to its fair value and its price relative to the market?

15.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTSH ($77.15) is trading below our estimate of fair value ($91.58)

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 (24.1x) compared to the US IT industry average (34.7x).

PE vs Market: CTSH is poor value based on its PE Ratio (24.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CTSH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CTSH is good value based on its PB Ratio (3.6x) compared to the US IT industry average (5.3x).


Future Growth

How is Cognizant Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTSH's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: CTSH's earnings (10.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: CTSH's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTSH's revenue (6.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CTSH's revenue (6.9% 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 (18%).


Past Performance

How has Cognizant Technology Solutions performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTSH has high quality earnings.

Growing Profit Margin: CTSH's current net profit margins (9.7%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: CTSH's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: CTSH's earnings growth over the past year (3.8%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: CTSH earnings growth over the past year (3.8%) underperformed the IT industry 28%.


Return on Equity

High ROE: CTSH's Return on Equity (15%) is considered low.


Financial Health

How is Cognizant Technology Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: CTSH's short term assets ($6.5B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: CTSH's short term assets ($6.5B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: CTSH's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: CTSH's debt to equity ratio has reduced from 9.2% to 6.1% over the past 5 years.

Debt Coverage: CTSH's debt is well covered by operating cash flow (372.6%).

Interest Coverage: CTSH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTSH's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CTSH's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (29.1%), 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 (24.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Brian Humphries (47 yo)

2.42yrs

Tenure

US$13,807,940

Compensation

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 ($USD13.81M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CTSH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CTSH's board of directors are considered experienced (3.4 years average tenure).


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

Cognizant Technology Solutions Corporation's 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$39.625b
  • Shares outstanding: 525.60m
  • Website: https://www.cognizant.com

Number of Employees


Location

  • Cognizant Technology Solutions Corporation
  • 300 Frank West Burr Boulevard
  • Teaneck
  • New Jersey
  • 7666
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:57
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.