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Conduent

NYSE:CNDT
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNDT
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and Europe. The last earnings update was 20 days ago. More info.


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  • Conduent has significant price volatility in the past 3 months.
CNDT Share Price and Events
7 Day Returns
-2.4%
NYSE:CNDT
2%
US IT
1.6%
US Market
1 Year Returns
-30.1%
NYSE:CNDT
15.4%
US IT
3.2%
US Market
CNDT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Conduent (CNDT) -2.4% 2.9% 31.2% -30.1% - -
US IT 2% 4.7% 20.1% 15.4% 79.5% 95.3%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • CNDT underperformed the IT industry which returned 15.4% over the past year.
  • CNDT underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
CNDT
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Conduent to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Conduent.

NYSE:CNDT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CNDT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (52.93%))
1.34
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.34
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.34 * 5.96%)
10.72%

Discounted Cash Flow Calculation for NYSE:CNDT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Conduent is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CNDT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.72%)
2019 243.75 Analyst x4 220.15
2020 257.33 Analyst x3 209.92
2021 156.00 Analyst x1 114.94
2022 201.00 Analyst x1 133.76
2023 250.00 Analyst x1 150.26
2024 253.91 Est @ 1.56% 137.84
2025 258.77 Est @ 1.91% 126.88
2026 264.36 Est @ 2.16% 117.07
2027 270.52 Est @ 2.33% 108.20
2028 277.15 Est @ 2.45% 100.12
Present value of next 10 years cash flows $1,419.13
NYSE:CNDT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $277.15 × (1 + 2.73%) ÷ (10.72% – 2.73%)
$3,564.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,564.15 ÷ (1 + 10.72%)10
$1,287.55
NYSE:CNDT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,419.13 + $1,287.55
$2,706.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,706.69 / 211.60
$12.79
NYSE:CNDT Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.79
Current discount Discount to share price of $13.99
= -1 x ($13.99 - $12.79) / $12.79
-9.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Conduent is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Conduent's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Conduent's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CNDT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.07
NYSE:CNDT Share Price ** NYSE (2019-03-19) in USD $13.99
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.24x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Conduent.

NYSE:CNDT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CNDT Share Price ÷ EPS (both in USD)

= 13.99 ÷ -2.07

-6.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Conduent is loss making, we can't compare its value to the US IT industry average.
  • Conduent is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Conduent's expected growth come at a high price?
Raw Data
NYSE:CNDT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
149.3%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.42x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Conduent, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Conduent's assets?
Raw Data
NYSE:CNDT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $15.25
NYSE:CNDT Share Price * NYSE (2019-03-19) in USD $13.99
United States of America IT Industry PB Ratio Median Figure of 121 Publicly-Listed IT Companies 4.38x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:CNDT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CNDT Share Price ÷ Book Value per Share (both in USD)

= 13.99 ÷ 15.25

0.92x

* Primary Listing of Conduent.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Conduent is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Conduent's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Conduent has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Conduent expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
149.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Conduent expected to grow at an attractive rate?
  • Conduent's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Conduent's earnings growth is expected to exceed the United States of America market average.
  • Conduent's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CNDT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CNDT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 149.3%
NYSE:CNDT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -4.9%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CNDT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CNDT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 5,071 1
2020-12-31 4,755 412 82 8
2019-12-31 4,669 372 -2 8
NYSE:CNDT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,393 283 -426
2018-09-30 5,604 268 -78
2018-06-30 5,780 402 142
2018-03-31 5,889 371 127
2017-12-31 6,022 300 167
2017-09-30 6,043 210 -989
2017-06-30 6,159 246 -969
2017-03-31 6,276 118 -972
2016-12-31 6,408 95 -983
2016-09-30 6,624 450 -23
2016-06-30 6,599 438 -260
2016-03-31 6,669 517 -353

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Conduent's earnings are expected to grow significantly at over 20% yearly.
  • Conduent's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CNDT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Conduent Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CNDT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.39 0.58 0.23 4.00
2019-12-31 -0.01 0.00 -0.03 3.00
NYSE:CNDT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.07
2018-09-30 -0.38
2018-06-30 0.69
2018-03-31 0.62
2017-12-31 0.82
2017-09-30 -4.86
2017-06-30 -4.77
2017-03-31 -4.79
2016-12-31 -4.85
2016-09-30
2016-06-30 -1.28
2016-03-31 -1.74

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Conduent is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Conduent's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Conduent has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Conduent performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Conduent's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Conduent does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Conduent's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Conduent's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Conduent's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Conduent Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CNDT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,393.00 -426.00 560.00 11.00
2018-09-30 5,604.00 -78.00 585.00 10.00
2018-06-30 5,780.00 142.00 587.00 11.00
2018-03-31 5,889.00 127.00 591.00 11.00
2017-12-31 6,022.00 167.00 611.00 12.00
2017-09-30 6,043.00 -989.00 635.00 17.00
2017-06-30 6,159.00 -969.00 655.00 20.00
2017-03-31 6,276.00 -972.40 672.00 25.00
2016-12-31 6,408.00 -983.00 679.00 31.00
2016-09-30 6,624.00 -23.00 694.00 38.00
2016-06-30 6,599.00 -260.00 700.00 43.00
2016-03-31 6,669.00 -353.00 703.00 50.00
2015-12-31 6,662.00 -336.00 699.00 52.00
2014-12-31 6,938.00 34.00 659.00 46.00
2013-12-31 6,879.00 135.00 661.00 40.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Conduent has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Conduent has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Conduent improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Conduent's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Conduent has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Conduent's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Conduent's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Conduent is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Conduent's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Conduent's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Conduent Company Filings, last reported 2 months ago.

NYSE:CNDT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,364.00 1,567.00 756.00
2018-09-30 3,501.00 1,577.00 586.00
2018-06-30 3,641.00 2,044.00 993.00
2018-03-31 3,652.00 2,053.00 553.00
2017-12-31 3,671.00 2,061.00 658.00
2017-09-30 3,454.00 2,062.00 468.00
2017-06-30 3,459.00 2,130.00 309.00
2017-03-31 3,441.00 2,121.00 255.00
2016-12-31 3,430.00 1,941.00 390.00
2016-09-30 5,490.00 1,154.00 148.00
2016-06-30 5,506.00 1,156.00 160.00
2016-03-31 5,383.00 1,196.00 143.00
2015-12-31 5,162.00 1,193.00 140.00
2014-12-31 5,411.00 2,551.00 159.00
2013-12-31
  • Conduent's level of debt (46.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Conduent's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Conduent has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Conduent has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.4% per year.
X
Financial health checks
We assess Conduent's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Conduent has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Conduent's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Conduent dividends. Estimated to be 0% next year.
If you bought $2,000 of Conduent shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Conduent's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Conduent's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CNDT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CNDT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Conduent has not reported any payouts.
  • Unable to verify if Conduent's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Conduent's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Conduent has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Conduent's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Conduent's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Conduent afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Conduent has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ashok Vemuri
COMPENSATION $11,829,470
AGE 50
TENURE AS CEO 2.2 years
CEO Bio

Mr. Ashok Vemuri has been Chief Executive Officer of Conduent Incorporated since January 1, 2017. Mr. Vemuri served as the Executive Vice President and Chief Executive Officer of Xerox Business Services, LLC at Xerox Corporation since July 1, 2016 until December 31, 2016. Mr. Vemuri serves as Director at The Kroger Co. since January 24, 2019. Mr. Vemuri served as the Chief Executive Officer of iGate Global Solutions Ltd. since September 2013 until October 6, 2015. Mr. Vemuri served as the Chief Executive Officer and President of iGATE Corporation from September 16, 2013 to October 2015. He was Head of Banking and Capital Markets at Infosys Limited. Mr. Vemuri served as the Global Head of Manufacturing & Engineering Services at Infosys Limited from April 2012 to September 12, 2013 and also served as Head of its Americas Operations until September 12, 2013. Mr. Vemuri served as the Global Head of the Financial Services & Insurance Business, Global Head of Banking, Capital Markets & Strategic Global Sourcing and Senior Vice President at Infosys Limited. and served as Global Head of its Manufacturing, Engineering Services & Enterprise Mobility, Global Head of Banking & Capital Markets, Senior Vice President of Banking & Capital Markets and also as Senior Vice President of Banking, Capital Markets & Strategic Global Sourcing. Mr. Vemuri joined Infosys in 1999 and headed its operations in Canada and the Eastern North America region. He worked in the investment banking industry with Bank of America and Deutsche Bank. He was Chairman of Infosys Technologies (Shanghai) Co. Limited and Infosys Technologies (China) Co. Limited. He has been a Director of Conduent Incorporated since January 1, 2017. Mr. Vemuri brings to the Board unique operational, financial and client experience and a proven track record of leading growth and corporate transformations through his leadership positions with IGATE and Infosys. He served as a Director of Infosys Technologies (China) Company Limited. He served as a Director at iGate Global Solutions Ltd. since September 17, 2013 until October 6, 2015. Mr. Vemuri served as a Director of iGATE Corporation from September 16, 2013 to October 2015. He served as a Director of Infosys Limited from June 11, 2011 to September 12, 2013. He also served on the Board of Infosys Consulting and Infosys Public Services, Inc. Mr. Vemuri spent 14 years at Infosys Limited. He is a member of the World Economic Forum IT Board of Governors. He won the Board of Enterprise Asia Outstanding Entrepreneur Award and IAIR Businessman of the Year award in 2015. Mr. Vemuri received a Bachelor's Degree with Honors in Physics from St. Stephens College, Delhi and a Master's in Business Administration from the Indian Institute of Management, Ahmedabad. He studied Postgraduate Diploma from Indian Institute of Management, Ahmedabad in Management.

CEO Compensation
  • Ashok's compensation has increased whilst company is loss making.
  • Ashok's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Conduent management team in years:

2
Average Tenure
50
Average Age
  • The tenure for the Conduent management team is about average.
Management Team

Ashok Vemuri

TITLE
CEO & Director
COMPENSATION
$12M
AGE
50
TENURE
2.2 yrs

Brian Webb-Walsh

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
42
TENURE
3.2 yrs

Mike Peffer

TITLE
Executive VP
COMPENSATION
$5M
AGE
56
TENURE
2.3 yrs

Jeff Friedel

TITLE
Executive VP & Chief People Officer
COMPENSATION
$4M
AGE
56
TENURE
2.1 yrs

Allan Cohen

TITLE
VP & Chief Accounting Officer
AGE
48
TENURE
1.4 yrs

Rahul Gupta

TITLE
Chief Technology & Product Officer
TENURE
0.2 yrs

Alan Katz

TITLE
Vice President of Investor Relations

Brian Clayton

TITLE
Chief Compliance Officer
TENURE
0.2 yrs

Lokesh Prasad

TITLE
Chief Executive Officer of Asia Pacific & Conduent India
TENURE
2 yrs

Christine Landry

TITLE
Group Chief Executive of Consumer & Industrial
Board of Directors Tenure

Average tenure and age of the Conduent board of directors in years:

2.2
Average Tenure
56
Average Age
  • The average tenure for the Conduent board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Parrett

TITLE
Chairman of the Board
COMPENSATION
$370K
AGE
73
TENURE
2.2 yrs

Ashok Vemuri

TITLE
CEO & Director
COMPENSATION
$12M
AGE
50
TENURE
2.2 yrs

Gina Wilson

TITLE
Director
COMPENSATION
$260K
AGE
63
TENURE
2.2 yrs

Joie Gregor

TITLE
Director
COMPENSATION
$260K
AGE
68
TENURE
2.2 yrs

Michael Nutter

TITLE
Director
COMPENSATION
$250K
AGE
60
TENURE
2.2 yrs

Courtney Mather

TITLE
Director
COMPENSATION
$237K
AGE
41
TENURE
2.2 yrs

Michael Nevin

TITLE
Director
COMPENSATION
$240K
AGE
34
TENURE
2.2 yrs

Nick Graziano

TITLE
Director
AGE
45
TENURE
0.8 yrs

A. Letier

TITLE
Director
AGE
56
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Aug 18 Sell David Amoriell Individual 20. Aug 18 20. Aug 18 -33,903 $21.30 $-722,229
X
Management checks
We assess Conduent's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Conduent has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What You Must Know About Conduent Incorporated's (NYSE:CNDT) Financial Strength

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Conduent Incorporated (NYSE:CNDT), with a market capitalization of US$3.1b, rarely draw their attention from the investing community. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Is Conduent Incorporated (NYSE:CNDT) Worth US$12.67 Based On Intrinsic Value?

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Conduent Incorporated (NYSE:CNDT) Investors Are Paying Above The Intrinsic Value

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Conduent Incorporated (NYSE:CNDT) May Not Be As Efficient As Its Industry

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Knowing these components could change your view on CNDT’s performance. … View our latest analysis for Conduent

Simply Wall St -

Does Conduent Incorporated's (NYSE:CNDT) Debt Level Pose A Problem?

Mid-caps stocks, like Conduent Incorporated (NYSE:CNDT) with a market capitalization of US$3.87b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Let’s take a look at CNDT’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Conduent Incorporated (NYSE:CNDT): A Look At Return On Capital

To understand Conduent’s capital returns we will look at a useful metric called return on capital employed. … A good metric to use is return on capital employed (ROCE), which helps us gauge how much income can be created from the funds needed to operate the business. … Take a look at the formula box beneath: ROCE Calculation for CNDT Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = US$77.00M ÷ (US$7.51B - US$1.37B) = 1.26% CNDT’s 1.26% ROCE means that for every $100 you invest, the company creates $1.3.

Simply Wall St -

Intrinsic Calculation For Conduent Incorporated (NYSE:CNDT) Shows Investors Are Overpaying

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $171.50 $341.75 $328.89 $316.51 $304.59 Source Analyst x2 Analyst x4 Extrapolated @ (-3.76%) Extrapolated @ (-3.76%) Extrapolated @ (-3.76%) Present Value Discounted @ 12.37% $152.63 $270.67 $231.81 $198.54 $170.04 Present Value of 5-year Cash Flow (PVCF)= $1,024 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $305 × (1 + 2.5%) ÷ (12.4% – 2.5%) = $3,154 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $3,154 / ( 1 + 12.4%)5 = $1,761 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $2,784. … NYSE:CNDT Intrinsic Value May 9th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Does Conduent Incorporated's (NYSE:CNDT) Debt Level Pose A Problem?

View our latest analysis for Conduent How does CNDT’s operating cash flow stack up against its debt? … On top of this, CNDT has generated cash from operations of US$302.00M during the same period of time, leading to an operating cash to total debt ratio of 14.65%, meaning that CNDT’s debt is not appropriately covered by operating cash. … Next Steps: CNDT’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Who Are The Major Shareholders In Conduent Incorporated (NYSE:CNDT)?

Although CNDT has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Insider Ownership Another important group of shareholders are company insiders. … Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Does Conduent Incorporated's (NYSE:CNDT) PE Ratio Warrant A Buy?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for CNDT Price per share = $19.11 Earnings per share = $0.819 ∴ Price-Earnings Ratio = $19.11 ÷ $0.819 = 23.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with CNDT, then CNDT’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, CNDT’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.

Simply Wall St -

Company Info

Description

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and Europe. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries. This segment delivers end-to-end business-to-business and business-to-customer services, including customer care, human resource management, omni-channel communications, and finance and accounting services that enable its clients to optimize their processes. It also provides industry-specific services, such as personalized product information for the automotive industry; digitized source-to-pay solutions for clients in the manufacturing industry; customer experience and marketing services for clients in the retail industry; mortgage and consumer loan processing for clients in the financial services industry; and customized workforce learning solutions for clients in the aerospace industry. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for transportation, public assistance, program administration, transaction processing, and payment services. The Transportation segment provides support for electronic toll collection, public transit, parking, and photo enforcement service to transportation departments and agencies worldwide. It also offers payment services comprising prepaid cards, health savings accounts, and child support payments; customer care services; human resources services; finance and accounting services; legal business services; workforce learning services; and applied automation and analytics solutions. The company is headquartered in Florham Park, New Jersey.

Details
Name: Conduent Incorporated
CNDT
Exchange: NYSE
Founded:
$2,960,305,810
211,601,559
Website: http://www.conduent.com
Address: Conduent Incorporated
100 Campus Drive,
Suite 200,
Florham Park,
New Jersey, 07932,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CNDT Common Stock New York Stock Exchange US USD 13. Dec 2016
DB 4C0 Common Stock Deutsche Boerse AG DE EUR 13. Dec 2016
Number of employees
Current staff
Staff numbers
82,000
Conduent employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 00:42
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.