Cognizant Technology Solutions
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The last earnings update was 29 days ago. More info.
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CTSH Share Price and Events
7 Day Returns
1 Year Returns
CTSH Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Cognizant Technology Solutions (CTSH) | 0.7% | -2.5% | 14.2% | -14% | 21.4% | 46% |
| US IT | 1.7% | 4.9% | 22.3% | 15.5% | 80.2% | 94.8% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- CTSH underperformed the IT industry which returned 15.5% over the past year.
- CTSH underperformed the Market in United States of America which returned 3% over the past year.
CTSH Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Cognizant Technology Solutions
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Cognizant Technology Solutions.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 30 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.06 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.064 (1 + (1- 21%) (1.81%)) |
1.053 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.053 * 5.96%) |
9.01% |
Discounted Cash Flow Calculation for NasdaqGS:CTSH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Cognizant Technology Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.01%) |
|
|---|---|---|---|
| 2019 | 2,681.88 | Analyst x10 | 2,460.28 |
| 2020 | 2,861.83 | Analyst x8 | 2,408.45 |
| 2021 | 3,101.97 | Analyst x4 | 2,394.85 |
| 2022 | 3,302.36 | Est @ 6.46% | 2,338.90 |
| 2023 | 3,478.74 | Est @ 5.34% | 2,260.24 |
| 2024 | 3,637.29 | Est @ 4.56% | 2,167.99 |
| 2025 | 3,783.13 | Est @ 4.01% | 2,068.60 |
| 2026 | 3,920.29 | Est @ 3.63% | 1,966.49 |
| 2027 | 4,051.89 | Est @ 3.36% | 1,864.56 |
| 2028 | 4,180.29 | Est @ 3.17% | 1,764.71 |
| Present value of next 10 years cash flows | $21,695.08 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $4,180.29 × (1 + 2.73%) ÷ (9.01% – 2.73%) |
$68,417.81 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $68,417.81 ÷ (1 + 9.01%)10 |
$28,882.56 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $21,695.08 + $28,882.56 |
$50,577.64 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $50,577.64 / 575.10 |
$87.95 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $87.95 |
| Current discount | Discount to share price of
$71.71
= -1 x ($71.71 - $87.95) / $87.95 |
18.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Cognizant Technology Solutions's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Cognizant Technology Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Cognizant Technology Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Cognizant Technology Solutions's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $3.61 |
| NasdaqGS:CTSH Share Price ** | NasdaqGS (2019-03-20) in USD | $71.71 |
| United States of America IT Industry PE Ratio | Median Figure of 78 Publicly-Listed IT Companies | 30.36x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Cognizant Technology Solutions.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:CTSH Share Price ÷ EPS (both in USD) = 71.71 ÷ 3.61 |
19.86x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cognizant Technology Solutions is good value based on earnings compared to the US IT industry average.
- Cognizant Technology Solutions is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Cognizant Technology Solutions's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 19.86x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts |
10.9%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 64 Publicly-Listed IT Companies | 2.42x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.86x ÷ 10.9% |
1.82x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cognizant Technology Solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Cognizant Technology Solutions's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $19.80 |
| NasdaqGS:CTSH Share Price * | NasdaqGS (2019-03-20) in USD | $71.71 |
| United States of America IT Industry PB Ratio | Median Figure of 122 Publicly-Listed IT Companies | 4.43x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:CTSH Share Price ÷ Book Value per Share (both in USD) = 71.71 ÷ 19.80 |
3.62x |
* Primary Listing of Cognizant Technology Solutions.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cognizant Technology Solutions is good value based on assets compared to the US IT industry average.
Value checks
We assess Cognizant Technology Solutions's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Cognizant Technology Solutions has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CTSH Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Cognizant Technology Solutions's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Cognizant Technology Solutions's earnings growth is positive but not above the United States of America market average.
- Cognizant Technology Solutions's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:CTSH Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts | 10.9% |
| NasdaqGS:CTSH Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts | 7% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 15.7% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 23,252 | 4,257 | 3,639 | 1 |
| 2022-12-31 | 21,769 | 3,934 | 3,381 | 1 |
| 2021-12-31 | 20,269 | 3,504 | 3,071 | 10 |
| 2020-12-31 | 18,765 | 3,305 | 2,786 | 29 |
| 2019-12-31 | 17,351 | 2,999 | 2,542 | 30 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 16,125 | 2,592 | 2,101 |
| 2018-09-30 | 15,824 | 2,726 | 1,435 |
| 2018-06-30 | 15,512 | 2,637 | 1,453 |
| 2018-03-31 | 15,176 | 2,518 | 1,467 |
| 2017-12-31 | 14,810 | 2,407 | 1,504 |
| 2017-09-30 | 14,444 | 2,175 | 1,938 |
| 2017-06-30 | 14,131 | 2,005 | 1,887 |
| 2017-03-31 | 13,831 | 1,850 | 1,669 |
| 2016-12-31 | 13,487 | 1,645 | 1,553 |
| 2016-09-30 | 13,258 | 1,731 | 1,561 |
| 2016-06-30 | 12,992 | 1,946 | 1,514 |
| 2016-03-31 | 12,707 | 2,036 | 1,682 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
All data from Cognizant Technology Solutions Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 6.64 | 6.64 | 6.64 | 1.00 |
| 2022-12-31 | 6.10 | 6.10 | 6.10 | 1.00 |
| 2021-12-31 | 5.41 | 5.57 | 5.26 | 6.00 |
| 2020-12-31 | 4.87 | 5.05 | 4.24 | 20.00 |
| 2019-12-31 | 4.40 | 4.53 | 4.21 | 18.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.61 |
| 2018-09-30 | 2.45 |
| 2018-06-30 | 2.47 |
| 2018-03-31 | 2.49 |
| 2017-12-31 | 2.54 |
| 2017-09-30 | 3.24 |
| 2017-06-30 | 3.13 |
| 2017-03-31 | 2.75 |
| 2016-12-31 | 2.56 |
| 2016-09-30 | 2.57 |
| 2016-06-30 | 2.49 |
| 2016-03-31 | 2.76 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Cognizant Technology Solutions is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Cognizant Technology Solutions's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Cognizant Technology Solutions has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CTSH Past Performance
How has Cognizant Technology Solutions performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Cognizant Technology Solutions's year on year earnings growth rate has been positive over the past 5 years.
- Cognizant Technology Solutions's 1-year earnings growth exceeds its 5-year average (39.7% vs 5.1%)
- Cognizant Technology Solutions's earnings growth has exceeded the US IT industry average in the past year (39.7% vs 16%).
Earnings and Revenue History
All data from Cognizant Technology Solutions Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 16,125.00 | 2,101.00 | 2,991.00 | |
| 2018-09-30 | 15,824.00 | 1,435.00 | 2,899.00 | |
| 2018-06-30 | 15,512.00 | 1,453.00 | 2,831.00 | |
| 2018-03-31 | 15,176.00 | 1,467.00 | 2,696.00 | |
| 2017-12-31 | 14,810.00 | 1,504.00 | 2,661.00 | |
| 2017-09-30 | 14,444.00 | 1,938.00 | 2,703.00 | |
| 2017-06-30 | 14,131.00 | 1,887.00 | 2,749.00 | |
| 2017-03-31 | 13,831.00 | 1,669.00 | 2,733.00 | |
| 2016-12-31 | 13,487.00 | 1,553.00 | 2,704.00 | |
| 2016-09-30 | 13,257.50 | 1,560.80 | 2,660.10 | |
| 2016-06-30 | 12,991.50 | 1,514.00 | 2,586.20 | |
| 2016-03-31 | 12,706.60 | 1,682.10 | 2,544.20 | |
| 2015-12-31 | 12,416.00 | 1,624.00 | 2,509.00 | |
| 2015-09-30 | 11,925.70 | 1,563.10 | 2,412.50 | |
| 2015-06-30 | 11,319.80 | 1,521.50 | 2,291.50 | |
| 2015-03-31 | 10,751.80 | 1,473.30 | 2,162.40 | |
| 2014-12-31 | 10,263.00 | 1,439.00 | 2,037.00 | |
| 2014-09-30 | 9,875.99 | 1,400.73 | 1,924.90 | |
| 2014-06-30 | 9,600.61 | 1,364.76 | 1,862.18 | |
| 2014-03-31 | 9,244.75 | 1,293.27 | 1,799.81 | |
| 2013-12-31 | 8,843.20 | 1,228.60 | 1,727.60 | |
| 2013-09-30 | 8,435.92 | 1,183.03 | 1,678.85 | |
| 2013-06-30 | 8,021.88 | 1,140.30 | 1,620.43 | |
| 2013-03-31 | 7,655.86 | 1,091.82 | 1,596.67 | |
| 2012-12-31 | 7,346.47 | 1,051.26 | 1,557.65 | |
| 2012-09-30 | 7,061.96 | 1,012.61 | 1,508.36 | |
| 2012-06-30 | 6,771.23 | 962.83 | 1,476.57 | |
| 2012-03-31 | 6,461.25 | 918.94 | 1,406.51 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Cognizant Technology Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Cognizant Technology Solutions used its assets more efficiently than the US IT industry average last year based on Return on Assets.
- Cognizant Technology Solutions has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Cognizant Technology Solutions's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Cognizant Technology Solutions has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CTSH Health
How is Cognizant Technology Solutions's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Cognizant Technology Solutions's finances.
The net worth of a company is the difference between its assets and liabilities.
- Cognizant Technology Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Cognizant Technology Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 11.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Cognizant Technology Solutions Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 11,424.00 | 745.00 | 4,511.00 |
| 2018-09-30 | 10,978.00 | 724.00 | 4,763.00 |
| 2018-06-30 | 10,648.00 | 749.00 | 4,247.00 |
| 2018-03-31 | 10,988.00 | 773.00 | 4,830.00 |
| 2017-12-31 | 10,669.00 | 873.00 | 5,056.00 |
| 2017-09-30 | 10,979.00 | 823.00 | 4,713.00 |
| 2017-06-30 | 10,483.00 | 991.00 | 4,378.00 |
| 2017-03-31 | 9,983.00 | 1,209.00 | 4,274.00 |
| 2016-12-31 | 10,728.00 | 878.00 | 5,169.00 |
| 2016-09-30 | 10,292.30 | 896.60 | 4,858.60 |
| 2016-06-30 | 9,862.90 | 908.80 | 4,481.20 |
| 2016-03-31 | 9,612.30 | 1,020.90 | 4,451.70 |
| 2015-12-31 | 9,278.00 | 1,283.00 | 4,949.00 |
| 2015-09-30 | 8,827.00 | 950.00 | 4,050.70 |
| 2015-06-30 | 8,540.80 | 1,062.50 | 3,566.50 |
| 2015-03-31 | 8,178.50 | 1,075.00 | 3,349.80 |
| 2014-12-31 | 7,740.20 | 1,637.50 | 3,774.70 |
| 2014-09-30 | 7,381.71 | 0.00 | 4,618.48 |
| 2014-06-30 | 6,990.83 | 0.00 | 4,129.22 |
| 2014-03-31 | 6,622.96 | 0.00 | 3,864.98 |
| 2013-12-31 | 6,135.79 | 0.00 | 3,747.47 |
| 2013-09-30 | 5,648.28 | 0.00 | 3,360.60 |
| 2013-06-30 | 5,323.75 | 0.00 | 2,900.57 |
| 2013-03-31 | 5,215.93 | 0.00 | 2,744.45 |
| 2012-12-31 | 4,854.38 | 0.00 | 2,863.76 |
| 2012-09-30 | 4,572.37 | 0.00 | 2,631.75 |
| 2012-06-30 | 4,092.33 | 0.00 | 2,346.14 |
| 2012-03-31 | 4,367.25 | 0.00 | 2,491.20 |
- Cognizant Technology Solutions's level of debt (6.5%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 6.5% today).
- Debt is well covered by operating cash flow (347.9%, greater than 20% of total debt).
- Cognizant Technology Solutions earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Cognizant Technology Solutions's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Cognizant Technology Solutions has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CTSH Dividends
What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Cognizant Technology Solutions
shares you are expected to receive
$22
in your first year as a dividend.
Dividend Amount
- Cognizant Technology Solutions's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Cognizant Technology Solutions's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 30 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.95 | 1.00 |
| 2022-12-31 | 0.92 | 1.00 |
| 2021-12-31 | 0.98 | 8.00 |
| 2020-12-31 | 0.90 | 15.00 |
| 2019-12-31 | 0.84 | 15.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-19 | 0.800 | 1.114 |
| 2019-02-06 | 0.800 | 1.090 |
| 2018-08-02 | 0.800 | 1.128 |
| 2018-05-07 | 0.800 | 1.018 |
| 2018-02-27 | 0.800 | 0.980 |
| 2018-02-07 | 0.800 | 1.002 |
| 2017-11-01 | 0.600 | 0.815 |
| 2017-08-03 | 0.600 | 0.832 |
| 2017-05-05 | 0.600 | 0.895 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Cognizant Technology Solutions has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Cognizant Technology Solutions only paid a dividend in the past 2 years.
Income/ dividend checks
We assess Cognizant Technology Solutions's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Cognizant Technology Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Cognizant Technology Solutions has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CTSH Management
CEO
| COMPENSATION | $12,478,391 |
| AGE | 49 |
| TENURE AS CEO | 12.2 years |
CEO Bio
Mr. Francisco D'Souza, also known as Frank, has been the Chief Executive Officer of Cognizant Technology Solutions Corporation since January 1, 2007 and its Vice Chair since June 2018. Mr. D'Souza serves as the Chief Executive Officer at MediCall Philippines, Inc. He served as the President of Cognizant Technology Solutions Corporation at Pepperweed Advisors, LLC from January 1, 2007 to February 6, 2012. He served as the Chief Operating Officer at Cognizant Technology Solutions Corporation from December 2003 to December 2006, Senior Vice President for North American Operations & Business Development from November 1999 to December 2003 and as its Vice President for North American Operations & Business Development and as Director of North American Operations & Business Development from June 1997 to March 1998. From January 1996 to June 1997, he served as a Consultant to Cognizant Technology Solutions Corp. From February 1995 to December 1995, he served as a Product Manager of Pilot Software. From 1992 to 1995, Mr. D'Souza held various marketing, business development and technology management positions as a Management Associate at The Dun & Bradstreet Corporation. While working at The Dun & Bradstreet Corporation, he was part of the team that established the software development and maintenance business conducted by Cognizant Technology Solutions Corp. He has been a Director of Cognizant Technology Solutions Corporation since January 1, 2007. He serves as a Director at MediCall Philippines. He has been an Independent Director of General Electric Company since February 15, 2013. He serves as a Member of International Advisory Board at Banco Santander, S.A. He served as a Director of Active Decisions, Inc. Mr. D'Souza holds a Bachelor of Business Administration Degree from the University of Macau and a Master of Science degree in Industrial Administration and a Master's degree of Business Administration from Carnegie Mellon University.
CEO Compensation
- Frank's compensation has increased by more than 20% in the past year.
- Frank's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Cognizant Technology Solutions management team in years:
- The average tenure for the Cognizant Technology Solutions management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Frank D'Souza
Vice Chair & CEO
$12M
49
12.2 yrs
Raj Mehta
President
$8M
51
2.5 yrs
Karen McLoughlin
Chief Financial Officer
$4M
53
7.1 yrs
Matt Friedrich
Executive VP
$7M
51
1.8 yrs
Ramakrishna Chintamaneni
Executive VP and President of Global Industries & Consulting
$4M
48
5.3 yrs
Srinivasan Veeraraghavachary
Executive VP & Chief Operating Officer
58
2.6 yrs
Robert Telesmanic
Senior VP
51
2.2 yrs
David Nelson
VP of Investor Relations & Treasurer
10.5 yrs
Malcolm Frank
Executive VP of Strategy & Marketing
$4M
51
7.1 yrs
Larry Bridge
Senior VP of Healthcare Strategy & Corporate Development
Board of Directors Tenure
Average tenure and age of the Cognizant Technology Solutions board of directors in years:
- The tenure for the Cognizant Technology Solutions board of directors is about average.
Board of Directors
Michael Patsalos-Fox
Chairman
$333K
65
0.5 yrs
Frank D'Souza
Vice Chair & CEO
$12M
49
0.8 yrs
John Fox
Independent Director
$328K
75
11.3 yrs
Maureen Breakiron-Evans
Independent Director
$343K
63
9.8 yrs
John Klein
Member of Board Of Directors
$475K
76
21 yrs
Leo Mackay
Independent Director
$310K
56
6.5 yrs
Zein Abdalla
Independent Director
$318K
59
3.5 yrs
Jonathan Chadwick
Independent Director
$312K
52
2.9 yrs
John Dineen
Independent Director
$371K
55
1.9 yrs
Joe Velli
Director
$145K
60
1.3 yrs
Who owns this company?
Recent Insider Trading
- Cognizant Technology Solutions insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 19. Mar 19 | Sell | Rajeev Mehta | Individual | 15. Mar 19 | 15. Mar 19 | -19,664 | $71.62 | $-1,408,393 | ||
| 19. Mar 19 | Sell | Venkat Krishnaswamy | Individual | 15. Mar 19 | 15. Mar 19 | -3,014 | $71.75 | $-216,255 | ||
| 15. Mar 19 | Sell | Rajeev Mehta | Individual | 13. Mar 19 | 14. Mar 19 | -20,000 | $72.00 | $-1,430,000 | ||
| 11. Mar 19 | Sell | Rajeev Mehta | Individual | 07. Mar 19 | 07. Mar 19 | -10,000 | $72.50 | $-725,000 | ||
| 17. Dec 18 | Sell | Gajakarnan Kandiah | Individual | 13. Dec 18 | 13. Dec 18 | -1,654 | $69.00 | $-114,126 | ||
| 14. Aug 18 | Sell | Rajeev Mehta | Individual | 10. Aug 18 | 10. Aug 18 | -22,239 | $75.86 | $-1,687,064 | ||
| 19. Jun 18 | Sell | Leo Mackay | Individual | 15. Jun 18 | 15. Jun 18 | -1,013 | $78.98 | $-80,005 | ||
| 19. Jun 18 | Sell | Debashis Chatterjee | Individual | 15. Jun 18 | 15. Jun 18 | -5,500 | $79.80 | $-438,909 | ||
Management checks
We assess Cognizant Technology Solutions's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Cognizant Technology Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CTSH News
Simply Wall St News
Is Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) ROE Of 18% Impressive?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Cognizant Technology Solutions Corporation (NASDAQ:CTSH). … Our data shows Cognizant Technology Solutions has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCognizant Technology Solutions Corporation (NASDAQ:CTSH): Cash Is King
If you are currently a shareholder in Cognizant Technology Solutions Corporation (NASDAQ:CTSH), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Today we will examine Cognizant Technology Solutions’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Cognizant Technology Solutions generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating
Simply Wall St - – Full articleShould You Worry About Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) CEO Pay Cheque?
Frank D'Souza became the CEO of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) in 2007. … See our latest analysis for Cognizant Technology Solutions? … How Does Frank D'Souza's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleInvestors In Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Should Consider This Data
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has paid a dividend to shareholders in the last few years. … Does Cognizant Technology Solutions tick all the boxes of a great dividend stock? … Check out our latest analysis for Cognizant Technology Solutions?
Simply Wall St - – Full articleRead This Before Buying Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Shares
So we'll take a look at whether insiders have been buying or selling shares in Cognizant Technology Solutions Corporation (NASDAQ:CTSH). … Cognizant Technology Solutions Insider Transactions Over The Last Year. … In total, Cognizant Technology Solutions insiders sold more than they bought over the last year
Simply Wall St - – Full articleCognizant Technology Solutions Corporation (NASDAQ:CTSH) Is Trading At A 27.36% Discount
Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Please also note that this article was written in December 2018 so be sure check out the updated calculation by following the link below
Simply Wall St - – Full articleIs There Now An Opportunity In Cognizant Technology Solutions Corporation (NASDAQ:CTSH)?
received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $77.61 at one point, and dropping to the lows of $66.52. … A question to answer is whether Cognizant Technology Solutions's current trading price of $69.08 reflective of the actual value of the? … Let’s take a look at Cognizant Technology Solutions’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleWhat Should Investors Know About Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) Capital Returns?
and want to begin learning the link between Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Cognizant Technology Solutions is able to use capital to create earnings will help us understand your potential return.
Simply Wall St - – Full articleWhat Are Analysts Saying About The Future Of Cognizant Technology Solutions Corporation's (NASDAQ:CTSH)?
Based on Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) earnings update on 30 September 2018, … the consensus outlook from analysts appear highly confident, … with profits predicted to ramp up by an impressive 69% next year,
Simply Wall St - – Full articleIs Cognizant Technology Solutions Corporation (NASDAQ:CTSH) A Financially Strong Company?
With a market capitalization of US$41.2b, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … Using the most recent data for CTSH, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.
Simply Wall St - – Full articleCTSH Company Info
Description
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services. The company also develops, licenses, implements, and supports proprietary and third-party software products and platforms for the healthcare industry. In addition, it offers revenue cycle management solutions to the healthcare industry; business advisory and data analytics services; and salesforce services. Further, the company develops custom cloud-based software and platforms; and provides consulting services that enable companies to plan, implement, and optimize automated cloud-based business processes and technologies. It serves banking and insurance, healthcare and life sciences, retail and consumer goods, manufacturing and logistics, travel and hospitality, energy and utilities, communications and media, and technology industries. The company markets and sells its services through professional staff, senior management, and direct sales personnel. Cognizant Technology Solutions Corporation was founded in 1994 and is headquartered in Teaneck, New Jersey.
Details
| Name: | Cognizant Technology Solutions Corporation |
| CTSH | |
| Exchange: | NasdaqGS |
| Founded: | 1994 |
| $41,240,369,010 | |
| 575,099,275 | |
| Website: | http://www.cognizant.com |
| Address: |
Cognizant Technology Solutions Corporation Glenpointe Centre West, 500 Frank West Burr Boulevard, Teaneck, New Jersey, 07666, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | CTSH | Class A Common Stock | Nasdaq Global Select | US | USD | 19. Jun 1998 | |
| DB | COZ | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 19. Jun 1998 | |
| LSE | 0QZ5 | Class A Common Stock | London Stock Exchange | GB | USD | 19. Jun 1998 | |
| SWX | CTSH | Class A Common Stock | SIX Swiss Exchange | CH | CHF | 19. Jun 1998 | |
| WBAG | CTSH | Class A Common Stock | Wiener Boerse AG | AT | EUR | 19. Jun 1998 | |
| BMV | CTSH * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 19. Jun 1998 | |
| BOVESPA | CTSH34 | BDR EA REP 1 COM CL'A' USD0.01 | Bolsa de Valores de Sao Paulo | BR | BRL | 25. Apr 2016 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:34 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/20 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
