| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$59.03 |
| 52 Week High | US$93.47 |
| 52 Week Low | US$57.42 |
| Beta | 1.06 |
| 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 IPO | 28,234.17% |
Recent News & Updates
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...
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.
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
| CTSH | US IT | US Market | |
|---|---|---|---|
| 7D | 0.6% | 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
| CTSH volatility | |
|---|---|
| CTSH Average Weekly Movement | 3.8% |
| IT Industry Average Movement | 8.0% |
| Market Average Movement | 6.8% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 341,300 | Brian Humphries | https://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
| CTSH fundamental statistics | |
|---|---|
| Market Cap | US$30.56b |
| Earnings (TTM) | US$2.26b |
| Revenue (TTM) | US$19.25b |
13.5x
P/E Ratio1.6x
P/S RatioIs CTSH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CTSH income statement (TTM) | |
|---|---|
| Revenue | US$19.25b |
| Cost of Revenue | US$12.18b |
| Gross Profit | US$7.07b |
| Other Expenses | US$4.81b |
| Earnings | US$2.26b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.36 |
| Gross Margin | 36.73% |
| Net Profit Margin | 11.74% |
| Debt/Equity Ratio | 5.4% |
How did CTSH perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield24%
Payout RatioValuation
Is CTSH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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.
| What is CTSH's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$30.56b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.5x |
| Enterprise Value/EBITDA | 8.5x |
| PEG Ratio | 1.4x |
Price to Earnings Ratio vs Peers
How does CTSH's PE Ratio compare to its peers?
| CTSH PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 31.3x | ||
IT Gartner | 30.6x | -0.4% | US$22.5b |
EPAM EPAM Systems | 56.9x | 44.1% | US$20.9b |
DOX Amdocs | 18.2x | 7.4% | US$9.9b |
IBM International Business Machines | 19.5x | 11.7% | US$109.7b |
CTSH Cognizant Technology Solutions | 13.5x | 9.4% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 13.5x |
| Fair PE Ratio | 34.1x |
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
1/6Future 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
5/6Past 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
6/6Financial 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
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Dividend
What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend 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 |
|---|
| Segment | Dividend 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 |
|---|
| Date | Total Comp. | Salary | Company Earnings |
|---|---|---|---|
| Jun 30 2022 | n/a | n/a | US$2b |
| Mar 31 2022 | n/a | n/a | US$2b |
| Dec 31 2021 | US$20m | US$1m | US$2b |
| Sep 30 2021 | n/a | n/a | US$2b |
| Jun 30 2021 | n/a | n/a | US$2b |
| Mar 31 2021 | n/a | n/a | US$2b |
| Dec 31 2020 | US$14m | US$1m | US$1b |
| Sep 30 2020 | n/a | n/a | US$1b |
| Jun 30 2020 | n/a | n/a | US$2b |
| Mar 31 2020 | n/a | n/a | US$2b |
| Dec 31 2019 | US$16m | US$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
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 10 May 22 | SellUS$453,167 | Andrew Stafford | Individual | 5,867 | US$77.24 | |
| 11 Feb 22 | SellUS$452,500 | Rajesh Nambiar | Individual | 5,000 | US$90.50 | |
| 09 Dec 21 | SellUS$519,348 | Andrew Stafford | Individual | 6,422 | US$80.87 |
Ownership Breakdown
| Owner Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Private Companies | 12,928 | 0.002% |
| State or Government | 274,354 | 0.05% |
| Individual Insiders | 819,350 | 0.2% |
| General Public | 33,556,992 | 6.5% |
| Institutions | 483,121,303 | 93.3% |
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 52,437,943 | $3.1b | 6.78% | 0.08% | |||
| 43,239,423 | $2.6b | 1.28% | 0.06% | |||
| 27,559,889 | $1.6b | -4.65% | 0.94% | |||
| 22,065,628 | $1.3b | -2.82% | 0.07% | |||
| 20,407,425 | $1.2b | -23.31% | 0.11% | |||
| 15,321,159 | $904.4m | -0.74% | 0.31% | |||
| 13,768,131 | $812.7m | 2.42% | 2.56% | |||
| 12,564,511 | $741.7m | 2.55% | 0.13% | |||
| 11,172,384 | $659.5m | -4.61% | 1.82% | |||
| 10,217,267 | $603.1m | -6.76% | 0.16% | |||
| 9,225,717 | $544.6m | 1.95% | 0.07% | |||
| 8,693,340 | $513.2m | 9.95% | 0.43% | |||
| 7,216,946 | $426.0m | 2.06% | 0.1% | |||
| 6,883,068 | $406.3m | 0.87% | 0.45% | |||
| 6,874,259 | $405.8m | 12.08% | 1.53% | |||
| 6,564,323 | $387.5m | -4.89% | 0.16% | |||
| 6,186,390 | $365.2m | -0.61% | 0.07% | |||
| 6,078,989 | $358.8m | 49.87% | 0.07% | |||
| 5,797,939 | $342.3m | 3.08% | 0.39% | |||
| 5,502,687 | $324.8m | 0.29% | 2.69% | |||
| 5,133,839 | $303.1m | 0% | 0.04% | |||
| 4,956,660 | $292.6m | 4.11% | 0.09% | |||
| 4,311,165 | $254.5m | -18.39% | 0.11% | |||
| 4,182,984 | $246.9m | 3.28% | 1.13% | |||
| 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
| 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 |
| COZ | XTRA (XETRA Trading Platform) | 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 |
| CTSH | BVL (Bolsa de Valores de Lima) | Yes | Class A Common Stock | PE | USD | Jun 1998 |
| CTSH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 1 COM CL'A' USD0.01 | BR | BRL | Apr 2016 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/10/03 00:00 |
| End of Day Share Price | 2022/10/03 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.