Cognizant Technology Solutions
Market Cap
US$38.5b
Last Updated
2020/02/23 00:55 UTC
Data Sources
Company Financials +
Executive Summary
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide.
Rewards
Risk Analysis
No risks detected for CTSH from our risk checks.
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Cognizant Technology Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CTSH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
CTSH
-0.8%
US IT
-1.1%
US Market
1 Year Return
-3.2%
CTSH
34.8%
US IT
17.9%
US Market
Return vs Industry: CTSH underperformed the US IT industry which returned 34.8% over the past year.
Return vs Market: CTSH underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| CTSH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -0.8% | -1.1% |
| 30 Day | 12.3% | 3.3% | 1.4% |
| 90 Day | 10.6% | 13.0% | 6.9% |
| 1 Year | -1.9%-3.2% | 36.2%34.8% | 20.3%17.9% |
| 3 Year | 21.7%17.8% | 107.0%98.1% | 47.8%38.3% |
| 5 Year | 15.9%12.2% | 148.0%125.8% | 71.9%53.0% |
Price Volatility Vs. Market
How volatile is Cognizant Technology Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Investors Who Bought Cognizant Technology Solutions (NASDAQ:CTSH) Shares Five Years Ago Are Now Up 15%2 months ago | Simply Wall St
Did Cognizant Technology Solutions Corporation's (NASDAQ:CTSH) Recent Earnings Growth Beat The Trend?2 months ago | Simply Wall St
Does Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Have A Good P/E Ratio?Valuation
Is Cognizant Technology Solutions undervalued compared to its fair value and its price relative to the market?
14.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTSH ($70.09) is trading below our estimate of fair value ($81.76)
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 (21.3x) compared to the IT industry average (31.4x).
PE vs Market: CTSH is poor value based on its PE Ratio (21.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CTSH is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: CTSH is good value based on its PB Ratio (3.5x) compared to the US IT industry average (4.2x).
Next Steps
Future Growth
How is Cognizant Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTSH's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).
Earnings vs Market: CTSH's earnings (9.7% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: CTSH's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTSH's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CTSH's revenue (4.3% 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 (18.7%).
Next Steps
Past Performance
How has Cognizant Technology Solutions performed over the past 5 years?
5.7%
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%) are lower than last year (13%).
Past Earnings Growth Analysis
Earnings Trend: CTSH's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: CTSH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CTSH had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the IT industry average (12%).
Return on Equity
High ROE: CTSH's Return on Equity (16.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cognizant Technology Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: CTSH's short term assets ($7.6B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: CTSH's short term assets ($7.6B) exceed its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: CTSH's debt to equity ratio (6.7%) is considered satisfactory.
Reducing Debt: CTSH's debt to equity ratio has reduced from 21.1% to 6.7% over the past 5 years.
Debt Coverage: CTSH's debt is well covered by operating cash flow (338.6%).
Interest Coverage: CTSH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: CTSH has a low level of unsold assets or inventory.
Debt Coverage by Assets: CTSH's debt is covered by short term assets (assets are 10.3x debt).
Next Steps
Dividend
What is Cognizant Technology Solutions's current dividend yield, its reliability and sustainability?
1.26%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CTSH's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: CTSH's dividend (1.26%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.3%), 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 (27.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Brian Humphries (45yo)
0.8yrs
Tenure
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 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 8yrs | US$5.52m | 0.012% $4.6m | |
| Executive VP & President of Cognizant Digital Business | 0.8yrs | US$4.68m | 0.0063% $2.4m | |
| Executive VP & President of North America | 6.2yrs | US$3.16m | 0.011% $4.1m | |
| CEO & Director | 0.8yrs | no data | 0.0046% $1.8m | |
| Executive VP & Chief Operating Officer | 3.5yrs | no data | 0.0090% $3.4m | |
| Senior VP | 3.1yrs | no data | 0.0024% $911.4k | |
| Global Head of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 2.8yrs | US$6.98m | no data | |
| Vice President of Corporate Communications | 0yrs | no data | no data | |
| Senior VP of Healthcare Strategy & Corporate Development | 0yrs | no data | no data |
3.1yrs
Average Tenure
52yo
Average Age
Experienced Management: CTSH's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.8yrs | no data | 0.0046% $1.8m | |
| Executive Vice Chairman | 1.7yrs | US$14.09m | 0.034% $13.2m | |
| Independent Director | 21.9yrs | US$478.48k | 0.099% $38.0m | |
| Independent Director | 12.2yrs | US$331.48k | 0.0064% $2.4m | |
| Independent Director | 2.2yrs | US$311.98k | 0.0012% $465.3k | |
| Independent Chairman | 1.4yrs | US$443.10k | 0.0081% $3.1m | |
| Independent Director | 7.4yrs | US$311.98k | 0.0023% $896.0k | |
| Independent Director | 10.8yrs | US$344.48k | 0.00056% $215.3k | |
| Independent Director | 2.8yrs | US$324.42k | no data | |
| Independent Director | 4.4yrs | US$326.96k | 0.0011% $438.4k |
3.6yrs
Average Tenure
60.5yo
Average Age
Experienced Board: CTSH's board of directors are considered experienced (3.6 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 company bio, 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$38.454b
- Shares outstanding: 548.64m
- Website: https://www.cognizant.com
Number of Employees
Location
- Cognizant Technology Solutions Corporation
- Glenpointe Centre West
- 500 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 |
| COZ | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | Jun 1998 |
| CTSH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 1 COM CL'A' USD0.01 | BR | BRL | Apr 2016 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:55 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.