company background image
CTSH

Cognizant Technology Solutions NasdaqGS:CTSH Stock Report

Last Price

US$59.03

Market Cap

US$30.6b

7D

0.6%

1Y

-20.6%

Updated

03 Oct, 2022

Data

Company Financials +
CTSH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends3/6

CTSH Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Cognizant Technology Solutions
Historical stock prices
Current Share PriceUS$59.03
52 Week HighUS$93.47
52 Week LowUS$57.42
Beta1.06
1 Month Change-5.29%
3 Month Change-12.83%
1 Year Change-20.60%
3 Year Change-2.07%
5 Year Change-19.85%
Change since IPO28,234.17%

Recent News & Updates

Sep 29
Why Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Could Be Worth Watching

Why Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Could Be Worth Watching

Today we're going to take a look at the well-established Cognizant Technology Solutions Corporation ( NASDAQ:CTSH...

Sep 21

Cognizant join hands with Freshfields Bruckhaus Deringer

Cognizant (NASDAQ:CTSH) has been selected by global law firm Freshfields Bruckhaus Deringer to support the global law firm's business growth and enhance customer experience. Per the new multi-year pact, Cognizant will provide a 24x7 managed service of Freshfields' IT infrastructure and applications, as well as managing its service desk. The move will support Freshfields' high standards of client service, improving flexibility and driving investment and innovation in other parts of the business.

Aug 17

Cognizant Technology goes ex-dividend tomorrow

Cognizant Technology (NASDAQ:CTSH) had declared $0.27/share quarterly dividend, in line with previous. Payable Aug. 30; for shareholders of record Aug. 19; ex-div Aug. 18. See CTSH Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

CTSHUS ITUS Market
7D0.6%1.2%1.0%
1Y-20.6%-35.9%-20.0%

Return vs Industry: CTSH exceeded the US IT industry which returned -39.1% over the past year.

Return vs Market: CTSH exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is CTSH's price volatile compared to industry and market?
CTSH volatility
CTSH Average Weekly Movement3.8%
IT Industry Average Movement8.0%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
1994341,300Brian 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. It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well 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$30.56b
Earnings (TTM)US$2.26b
Revenue (TTM)US$19.25b

13.5x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTSH income statement (TTM)
RevenueUS$19.25b
Cost of RevenueUS$12.18b
Gross ProfitUS$7.07b
Other ExpensesUS$4.81b
EarningsUS$2.26b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.36
Gross Margin36.73%
Net Profit Margin11.74%
Debt/Equity Ratio5.4%

How did CTSH perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CTSH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTSH?

Other financial metrics that can be useful for relative valuation.

CTSH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA8.5x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does CTSH's PE Ratio compare to its peers?

CTSH PE Ratio vs Peers
The above table shows the PE ratio for CTSH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.3x
IT Gartner
30.6x-0.4%US$22.5b
EPAM EPAM Systems
56.9x44.1%US$20.9b
DOX Amdocs
18.2x7.4%US$9.9b
IBM International Business Machines
19.5x11.7%US$109.7b
CTSH Cognizant Technology Solutions
13.5x9.4%US$30.6b

Price-To-Earnings vs Peers: CTSH is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does CTSH's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: CTSH is good value based on its Price-To-Earnings Ratio (13.5x) compared to the US IT industry average (25.2x)


Price to Earnings Ratio vs Fair Ratio

What is CTSH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CTSH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio34.1x

Price-To-Earnings vs Fair Ratio: CTSH is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (34.1x).


Share Price vs Fair Value

What is the Fair Price of CTSH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTSH ($59.03) is trading below our estimate of fair value ($185.86)

Significantly Below Fair Value: CTSH is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Cognizant Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTSH's forecast earnings growth (9.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CTSH's earnings (9.4% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: CTSH's revenue (7.4% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: CTSH's revenue (7.4% 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 (18.9%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTSH has high quality earnings.

Growing Profit Margin: CTSH's current net profit margins (11.7%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: CTSH's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: CTSH's earnings growth over the past year (34.4%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: CTSH earnings growth over the past year (34.4%) exceeded the IT industry 19.2%.


Return on Equity

High ROE: CTSH's Return on Equity (18.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Cognizant Technology Solutions's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CTSH's short term assets ($7.0B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: CTSH's short term assets ($7.0B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: CTSH has more cash than its total debt.

Reducing Debt: CTSH's debt to equity ratio has reduced from 9.4% to 5.4% over the past 5 years.

Debt Coverage: CTSH's debt is well covered by operating cash flow (403.6%).

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


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.83%

Current Dividend Yield

Dividend Yield vs Market

Cognizant Technology Solutions Dividend Yield vs Market
How does Cognizant Technology Solutions dividend yield compare to the market?
SegmentDividend Yield
Company (Cognizant Technology Solutions)1.8%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (IT)1.6%
Analyst forecast in 3 Years (Cognizant Technology Solutions)2.0%

Notable Dividend: CTSH's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CTSH's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (4.75%).


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 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.3%), CTSH's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24%), CTSH's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure


CEO

Brian Humphries (48 yo)

3.5yrs

Tenure

US$19,687,285

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

Brian Humphries's Compensation vs Cognizant Technology Solutions Earnings
How has Brian Humphries's remuneration changed compared to Cognizant Technology Solutions's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$2b

Mar 31 2022n/an/a

US$2b

Dec 31 2021US$20mUS$1m

US$2b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$2b

Mar 31 2021n/an/a

US$2b

Dec 31 2020US$14mUS$1m

US$1b

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$2b

Mar 31 2020n/an/a

US$2b

Dec 31 2019US$16mUS$770k

US$2b

Compensation vs Market: Brian's total compensation ($USD19.69M) is above average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CTSH's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: CTSH's board of directors are considered experienced (4.8 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

NasdaqGS:CTSH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 May 22SellUS$453,167Andrew StaffordIndividual5,867US$77.24
11 Feb 22SellUS$452,500Rajesh NambiarIndividual5,000US$90.50
09 Dec 21SellUS$519,348Andrew StaffordIndividual6,422US$80.87

Ownership Breakdown

What is the ownership structure of CTSH?
Owner TypeNumber of SharesOwnership Percentage
Private Companies12,9280.002%
State or Government274,3540.05%
Individual Insiders819,3500.2%
General Public33,556,9926.5%
Institutions483,121,30393.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 61.89% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.13%
BlackRock, Inc.
52,437,943$3.1b6.78%0.08%
8.35%
The Vanguard Group, Inc.
43,239,423$2.6b1.28%0.06%
5.32%
Dodge & Cox
27,559,889$1.6b-4.65%0.94%
4.26%
State Street Global Advisors, Inc.
22,065,628$1.3b-2.82%0.07%
3.94%
FMR LLC
20,407,425$1.2b-23.31%0.11%
2.96%
Invesco Ltd.
15,321,159$904.4m-0.74%0.31%
2.66%
Pzena Investment Management, Inc.
13,768,131$812.7m2.42%2.56%
2.43%
Wellington Management Group LLP
12,564,511$741.7m2.55%0.13%
2.16%
Walter Scott & Partners Limited
11,172,384$659.5m-4.61%1.82%
1.97%
Massachusetts Financial Services Company
10,217,267$603.1m-6.76%0.16%
1.78%
Geode Capital Management, LLC
9,225,717$544.6m1.95%0.07%
1.68%
Boston Partners Global Investors, Inc.
8,693,340$513.2m9.95%0.43%
1.39%
BNY Mellon Asset Management
7,216,946$426.0m2.06%0.1%
1.33%
Macquarie Investment Management Business Trust
6,883,068$406.3m0.87%0.45%
1.33%
Barrow, Hanley, Mewhinney & Strauss, LLC
6,874,259$405.8m12.08%1.53%
1.27%
AllianceBernstein L.P.
6,564,323$387.5m-4.89%0.16%
1.19%
Northern Trust Global Investments
6,186,390$365.2m-0.61%0.07%
1.17%
J.P. Morgan Asset Management, Inc.
6,078,989$358.8m49.87%0.07%
1.12%
First Trust Advisors LP
5,797,939$342.3m3.08%0.39%
1.06%
Yacktman Asset Management LP
5,502,687$324.8m0.29%2.69%
0.99%
Norges Bank Investment Management
5,133,839$303.1m0%0.04%
0.96%
Legal & General Investment Management Limited
4,956,660$292.6m4.11%0.09%
0.83%
Franklin Resources, Inc.
4,311,165$254.5m-18.39%0.11%
0.81%
Diamond Hill Capital Management, Inc.
4,182,984$246.9m3.28%1.13%
0.79%
Goldman Sachs Asset Management, L.P.
4,102,930$242.2m-2.03%0.1%

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
  • Implied Market Cap: US$30.565b
  • Shares outstanding: 517.78m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTSHNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1998
COZDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1998
COZXTRA (XETRA Trading Platform)YesClass A Common StockDEEURJun 1998
CTSHSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFJun 1998
0QZ5LSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1998
CTSH *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 1998
CTSHWBAG (Wiener Boerse AG)YesClass A Common StockATEURJun 1998
CTSHBVL (Bolsa de Valores de Lima)YesClass A Common StockPEUSDJun 1998
CTSH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM CL'A' USD0.01BRBRLApr 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.