NYSE:CNDT

Stock Analysis Report

Executive Summary

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and Europe.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Conduent's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

CNDT

-4.6%

US IT

0.07%

US Market


1 Year Return

-69.8%

CNDT

19.0%

US IT

8.9%

US Market

Return vs Industry: CNDT underperformed the US IT industry which returned 19% over the past year.

Return vs Market: CNDT underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CNDTIndustryMarket
7 Day1.4%-4.6%0.07%
30 Day-4.6%-3.7%-0.3%
90 Day-35.7%-7.8%-1.6%
1 Year-69.8%-69.8%20.2%19.0%11.3%8.9%
3 Yearn/a88.3%80.6%46.3%36.8%
5 Yearn/a136.9%115.2%62.1%44.3%

Price Volatility Vs. Market

How volatile is Conduent's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Conduent undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNDT ($5.95) is trading below our estimate of fair value ($12.98)

Significantly Below Fair Value: CNDT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNDT is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: CNDT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CNDT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CNDT is good value based on its PB Ratio (0.7x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Conduent forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

97.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNDT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CNDT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CNDT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CNDT's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: CNDT's revenue is forecast to decline over the next 3 years (-4.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNDT's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Conduent performed over the past 5 years?

-22.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNDT is unprofitable, and losses have increased over the past 5 years at a rate of -22.5% per year.

Accelerating Growth: Unable to compare CNDT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNDT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (9.8%).


Return on Equity

High ROE: CNDT has a negative Return on Equity (-83.9%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CNDT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CNDT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Conduent's financial position?


Financial Position Analysis

Short Term Liabilities: CNDT's short term assets ($1.6B) exceeds its short term liabilities ($1.2B)

Long Term Liabilities: CNDT's short term assets (1.6B) do not cover its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: CNDT's debt to equity ratio (74.4%) is considered high

Reducing Debt: Insufficient data to determine if CNDT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: CNDT has a low level of unsold assets or inventory.

Debt Coverage by Assets: CNDT's debt is covered by short term assets (assets are 1.1x debt).


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.

Stable Cash Runway: CNDT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CNDT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CNDT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CNDT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CNDT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNDT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CNDT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Cliff Skelton (63yo)

0.2yrs

Tenure

0

Mr. Clifford A. Skelton, also known as Cliff, has been Chief Executive Officer Conduent Incorporated since August 2019 and served its Interim Chief Executive Officer since August 6, 2019 until August 2019. ...


Management Age and Tenure

0.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CNDT's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

61yo

Average Age

Experienced Board: CNDT's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$12,753,03416 Aug 19
Icahn Capital LP
EntityCompany
Shares1,941,101
Max PriceUS$6.57
BuyUS$29,640,69313 Aug 19
Icahn Capital LP
EntityCompany
Shares4,572,521
Max PriceUS$6.59
BuyUS$1,900,43123 May 19
Icahn Capital LP
EntityCompany
Shares211,159
Max PriceUS$9.00
BuyUS$22,308,77920 May 19
Icahn Capital LP
EntityCompany
Shares2,522,598
Max PriceUS$8.89
BuyUS$32,683,42413 May 19
Icahn Capital LP
EntityCompany
Shares3,915,417
Max PriceUS$8.37
BuyUS$20,50013 May 19
A. Letier
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$8.20

Ownership Breakdown


Management Team

  • Jeff Friedel (57yo)

    Executive VP & Global Head of Human Resource

    • Tenure: 2.7yrs
    • Compensation: US$1.12m
  • Alan Katz

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Cliff Skelton (63yo)

    CEO, President & Director

    • Tenure: 0.2yrs
  • Mike Peffer (57yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.53m
  • Brian Webb-Walsh (43yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.96m
  • Lou Keyes

    Global Head of Sales

    • Tenure: 0.08yrs
  • Burhan Jaffer

    Global Head of Corporate Development

    • Tenure: 1.8yrs
  • Mario Pompeo (49yo)

    VP & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Mark Prout

    Global Head of Technology & Operations

    • Tenure: 0.08yrs
  • Tracy Yelencsics

    Global Head of Marketing

    • Tenure: 0.08yrs

Board Members

  • Nick Graziano (46yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$166.26k
  • Gina Wilson (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$305.00k
  • A. Letier (58yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$23.33k
  • Kathy Higgins Victor (62yo)

    Director

    • Tenure: 0.8yrs
  • Michael Nutter (61yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$295.00k
  • Cliff Skelton (63yo)

    CEO, President & Director

    • Tenure: 0.2yrs
  • Jesse Lynn (48yo)

    Director

    • Tenure: 0.5yrs
  • Courtney Mather (42yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$282.00k
  • Margarita Paláu-Hernández (62yo)

    Director

    • Tenure: 0.2yrs

Company Information

Conduent Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Conduent Incorporated
  • Ticker: CNDT
  • Exchange: NYSE
  • Founded:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.257b
  • Shares outstanding: 211.33m
  • Website: https://www.conduent.com

Number of Employees


Location

  • Conduent Incorporated
  • 100 Campus Drive
  • Suite 200
  • Florham Park
  • New Jersey
  • 7932
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNDTNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2016
4C0DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2016

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:17
End of Day Share Price2019/10/23 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.