| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
CTSH Overview
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.
Rewards
Risk Analysis
No risks detected for CTSH from our risk checks.
Cognizant Technology Solutions Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$77.15 |
| 52 Week High | US$65.58 |
| 52 Week Low | US$82.73 |
| Beta | 1.16 |
| 1 Month Change | -1.10% |
| 3 Month Change | 9.45% |
| 1 Year Change | 15.32% |
| 3 Year Change | 0.51% |
| 5 Year Change | 40.27% |
| Change since IPO | 36,931.70% |
Recent News & Updates
Shareholder Returns
| CTSH | US IT | US Market | |
|---|---|---|---|
| 7D | 0.5% | 0.7% | -0.5% |
| 1Y | 15.3% | 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
| CTSH volatility | |
|---|---|
| CTSH Beta | 1.16 |
| Industry Beta | 1.18 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 301,200 | 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. 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
| CTSH fundamental statistics | |
|---|---|
| Market Cap | US$39.62b |
| Earnings (TTM) | US$1.68b |
| Revenue (TTM) | US$17.41b |
24.1x
P/E Ratio2.3x
P/S RatioIs CTSH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CTSH income statement (TTM) | |
|---|---|
| Revenue | US$17.41b |
| Cost of Revenue | US$10.89b |
| Gross Profit | US$6.53b |
| Expenses | US$4.84b |
| Earnings | US$1.68b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.16 |
| Gross Margin | 37.47% |
| Net Profit Margin | 9.65% |
| Debt/Equity Ratio | 6.1% |
How did CTSH perform over the long term?
See historical performance and comparisonDividends
1.2%
Current Dividend Yield29%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 22:57 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.