NasdaqGS:CTSH

Stock Analysis Report

Cognizant Technology Solutions

Executive Summary

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.


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


Market Performance


7 Day Return

1.1%

NasdaqGS:CTSH

0.9%

US IT

-0.7%

US Market


1 Year Return

-17.4%

NasdaqGS:CTSH

21.2%

US IT

-0.5%

US Market

CTSH underperformed the IT industry which returned 21.2% over the past year.

CTSH underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CTSHIndustryMarket
7 Day1.1%0.9%-0.7%
30 Day-5.0%-1.9%-3.0%
90 Day1.4%6.5%0.9%
1 Year-16.5%-17.4%22.5%21.2%1.7%-0.5%
3 Year9.6%7.1%98.2%89.7%39.5%30.4%
5 Year38.7%35.6%139.6%115.4%54.1%37.0%

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

Valuation

Is Cognizant Technology Solutions undervalued based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cognizant Technology Solutions's share price is below the future cash flow value, and 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 Based on Earnings

Cognizant Technology Solutions is good value based on earnings compared to the US IT industry average.

Cognizant Technology Solutions is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cognizant Technology Solutions is poor value based on expected growth next year.


Price Based on Value of Assets

Cognizant Technology Solutions is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Cognizant Technology Solutions expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cognizant Technology Solutions's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

Cognizant Technology Solutions's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).

Cognizant Technology Solutions's revenue growth is positive but not above the United States of America market average.

Cognizant Technology Solutions's earnings growth is positive but not above the United States of America market average.

Cognizant Technology Solutions's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cognizant Technology Solutions is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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


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 (42.8% vs 5.7%)

Cognizant Technology Solutions's earnings growth has exceeded the US IT industry average in the past year (42.8% vs 9.8%).


Return on Equity

Cognizant Technology Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cognizant Technology Solutions used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Cognizant Technology Solutions has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cognizant Technology Solutions's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Cognizant Technology Solutions's level of debt (7.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Cognizant Technology Solutions's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (322.8%, greater than 20% of total debt).

Cognizant Technology Solutions earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 9.7x debt.


Next Steps

Dividend

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

1.55%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Cognizant Technology Solutions before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Cognizant Technology Solutions's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Cognizant Technology Solutions's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of Cognizant Technology Solutions's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Brian Humphries (45yo)

0.3yrs

Tenure

0

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 ...


Management Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

The tenure for the Cognizant Technology Solutions management team is about average.


Board Age and Tenure

3.6yrs

Average Tenure

58.5yo

Average Age

The tenure for the Cognizant Technology Solutions board of directors is about average.


Insider Trading

More shares have been bought than sold by Cognizant Technology Solutions individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$7,25814 Jun 19
Malcolm Frank
EntityIndividual
Role
Senior Key Executive
President of Cognizant Digital Business
Shares100
Max PriceUS$72.58
BuyUS$1,160,74224 May 19
Brian Humphries
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares19,000
Max PriceUS$61.09
SellUS$1,408,39319 Mar 19
Rajeev Mehta
EntityIndividual
Shares19,664
Max PriceUS$71.62
SellUS$216,25519 Mar 19
Venkat Krishnaswamy
EntityIndividual
Shares3,014
Max PriceUS$71.75
SellUS$1,430,00015 Mar 19
Rajeev Mehta
EntityIndividual
Shares20,000
Max PriceUS$72.00
SellUS$725,00011 Mar 19
Rajeev Mehta
EntityIndividual
Shares10,000
Max PriceUS$72.50
SellUS$114,12617 Dec 18
Gajakarnan Kandiah
EntityIndividual
Shares1,654
Max PriceUS$69.00

Ownership Breakdown


Management Team

  • Larry Bridge

    Senior VP of Healthcare Strategy & Corporate Development

    • Tenure: 0.0yrs
  • Brian Humphries (45yo)

    CEO & Director

    • Tenure: 0.3yrs
  • Malcolm Frank (52yo)

    President of Cognizant Digital Business

    • Tenure: 0.6yrs
    • Compensation: US$4.68m
  • Matt Friedrich (52yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$6.98m
  • Karen McLoughlin (54yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: US$5.52m
  • Katie Royce

    Global Head of Investor Relations

    • Tenure: 0.0yrs
  • Sumithra Gomatam (52yo)

    Executive VP & President of Digital Operations

    • Tenure: 3.0yrs
  • Dharmendra Sinha (56yo)

    Executive VP & President of Global Client Services

    • Tenure: 5.7yrs
    • Compensation: US$3.16m
  • Srinivasan Veeraraghavachary (59yo)

    Executive VP & Chief Operating Officer

    • Tenure: 3.0yrs
  • James Lennox (54yo)

    Executive VP & Chief People Officer

    • Tenure: 3.6yrs

Board Members

  • Frank D'Souza (50yo)

    Executive Vice Chairman

    • Tenure: 1.2yrs
    • Compensation: US$14.09m
  • John Klein (77yo)

    Director

    • Tenure: 21.4yrs
    • Compensation: US$478.48k
  • John Fox (76yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$331.48k
  • Michael Patsalos-Fox (66yo)

    Chairman

    • Tenure: 0.9yrs
    • Compensation: US$443.10k
  • Leo Mackay (57yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$311.98k
  • Maureen Breakiron-Evans (64yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$344.48k
  • Brian Humphries (45yo)

    CEO & Director

    • Tenure: 0.3yrs
  • John Dineen (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$324.42k
  • Jonathan Chadwick (53yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$313.48k
  • Zein Abdalla (60yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$326.96k

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$34.165b
  • Shares outstanding: 552.29m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTSHNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1998
COZDB (Deutsche Boerse AG)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
CTSH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM CL'A' USD0.01BRBRLApr 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 Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:34
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.