(CTSH) Cognizant Technology - Ratings and Ratios
Consulting, Outsourcing, Digital, Cloud, Automation
CTSH EPS (Earnings per Share)
CTSH Revenue
Description: CTSH Cognizant Technology
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) is a U.S.–based professional services firm that delivers consulting, technology, and outsourcing solutions across North America, Europe, and other international markets. Its operations are organized into four industry-focused segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media & Technology.
The company’s service portfolio spans artificial intelligence (AI) and automation, application development, systems integration, digital engineering, quality engineering, infrastructure, security, cloud, Internet of Things (IoT), enterprise platform services, and business-process outsourcing (BPO). Notable offerings include AI-led automation advisory, the “Cognizant Moment” digital-experience platform, and a suite of proprietary and third-party software products tailored to specific industries.
Key recent performance metrics (FY 2023) show revenue of roughly **$20.5 billion**, with digital services growing **~13 % year-over-year**, while operating margins have been pressured by wage inflation and competitive pricing in the offshore labor market.
Sector-level drivers that materially affect Cognizant’s outlook include: (1) **Enterprise IT spending** in North America and Europe is projected to expand at a **~6 % CAGR** through 2028, bolstered by cloud migration and AI adoption; (2) **Talent cost inflation** remains a headwind, especially in high-skill software engineering roles; and (3) **Regulatory scrutiny of data privacy** is intensifying, creating both compliance costs and opportunities for security-focused services.
For a deeper, data-driven valuation framework, you may find ValueRay’s sector-specific dashboards useful.
CTSH Stock Overview
| Market Cap in USD | 33,509m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1998-06-19 |
CTSH Stock Ratings
| Growth Rating | -6.33% |
| Fundamental | 79.1% |
| Dividend Rating | 60.6% |
| Return 12m vs S&P 500 | -21.0% |
| Analyst Rating | 3.33 of 5 |
CTSH Dividends
| Dividend Yield 12m | 1.80% |
| Yield on Cost 5y | 1.82% |
| Annual Growth 5y | 8.06% |
| Payout Consistency | 99.4% |
| Payout Ratio | 24.6% |
CTSH Growth Ratios
| Growth Correlation 3m | -75.4% |
| Growth Correlation 12m | -53.9% |
| Growth Correlation 5y | 14.5% |
| CAGR 5y | 5.28% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.20 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.59 |
| Sharpe Ratio 12m | 1.38 |
| Alpha | -25.98 |
| Beta | 0.945 |
| Volatility | 26.02% |
| Current Volume | 3555.9k |
| Average Volume 20d | 3756.1k |
| Stop Loss | 66.3 (-3%) |
| Signal | -0.04 |
Piotroski VR‑10 (Strict, 0-10) 9.0
| Net Income (2.44b TTM) > 0 and > 6% of Revenue (6% = 1.23b TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA 2.64pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 21.72% (prev 22.32%; Δ -0.59pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 2.56b > Net Income 2.44b (YES >=105%, WARN >=100%) |
| Net Debt (-373.0m) to EBITDA (3.81b) ratio: -0.10 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.41 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (492.0m) change vs 12m ago -1.20% (target <= -2.0% for YES) |
| Gross Margin 33.53% (prev 32.41%; Δ 1.12pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 105.8% (prev 103.7%; Δ 2.06pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 60.30 (EBITDA TTM 3.81b / Interest Expense TTM 54.0m) >= 6 (WARN >= 3) |
Altman Z'' 8.33
| (A) 0.22 = (Total Current Assets 7.61b - Total Current Liabilities 3.16b) / Total Assets 20.16b |
| (B) 0.76 = Retained Earnings (Balance) 15.23b / Total Assets 20.16b |
| (C) 0.17 = EBIT TTM 3.26b / Avg Total Assets 19.37b |
| (D) 3.13 = Book Value of Equity 15.27b / Total Liabilities 4.88b |
| Total Rating: 8.33 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.10
| 1. Piotroski 9.0pt = 4.0 |
| 2. FCF Yield 6.94% = 3.47 |
| 3. FCF Margin 11.14% = 2.78 |
| 4. Debt/Equity 0.08 = 2.50 |
| 5. Debt/Ebitda -0.10 = 2.50 |
| 6. ROIC - WACC (= 6.80)% = 8.50 |
| 7. RoE 16.50% = 1.38 |
| 8. Rev. Trend 75.17% = 5.64 |
| 9. EPS Trend -33.31% = -1.67 |
What is the price of CTSH shares?
Over the past week, the price has changed by +2.40%, over one month by +0.29%, over three months by -10.60% and over the past year by -8.43%.
Is Cognizant Technology a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CTSH is around 61.93 USD . This means that CTSH is currently overvalued and has a potential downside of -9.41%.
Is CTSH a buy, sell or hold?
- Strong Buy: 4
- Buy: 3
- Hold: 19
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the CTSH price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 86.7 | 26.8% |
| Analysts Target Price | 86.7 | 26.8% |
| ValueRay Target Price | 69.5 | 1.6% |
Last update: 2025-10-11 03:47
CTSH Fundamental Data Overview
P/E Trailing = 13.9168
P/E Forward = 12.1212
P/S = 1.6357
P/B = 2.1404
P/EG = 1.2003
Beta = 0.945
Revenue TTM = 20.49b USD
EBIT TTM = 3.26b USD
EBITDA TTM = 3.81b USD
Long Term Debt = 559.0m USD (from longTermDebt, last quarter)
Short Term Debt = 188.0m USD (from shortTermDebt, last quarter)
Debt = 1.18b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -373.0m USD (from netDebt column, last quarter)
Enterprise Value = 32.88b USD (33.51b + Debt 1.18b - CCE 1.81b)
Interest Coverage Ratio = 60.30 (Ebit TTM 3.26b / Interest Expense TTM 54.0m)
FCF Yield = 6.94% (FCF TTM 2.28b / Enterprise Value 32.88b)
FCF Margin = 11.14% (FCF TTM 2.28b / Revenue TTM 20.49b)
Net Margin = 11.89% (Net Income TTM 2.44b / Revenue TTM 20.49b)
Gross Margin = 33.53% ((Revenue TTM 20.49b - Cost of Revenue TTM 13.62b) / Revenue TTM)
Gross Margin QoQ = 33.67% (prev 33.59%)
Tobins Q-Ratio = 1.63 (Enterprise Value 32.88b / Total Assets 20.16b)
Interest Expense / Debt = 0.76% (Interest Expense 9.00m / Debt 1.18b)
Taxrate = 23.40% (197.0m / 842.0m)
NOPAT = 2.49b (EBIT 3.26b * (1 - 23.40%))
Current Ratio = 2.41 (Total Current Assets 7.61b / Total Current Liabilities 3.16b)
Debt / Equity = 0.08 (Debt 1.18b / totalStockholderEquity, last quarter 15.29b)
Debt / EBITDA = -0.10 (Net Debt -373.0m / EBITDA 3.81b)
Debt / FCF = -0.16 (Net Debt -373.0m / FCF TTM 2.28b)
Total Stockholder Equity = 14.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.08% (Net Income 2.44b / Total Assets 20.16b)
RoE = 16.50% (Net Income TTM 2.44b / Total Stockholder Equity 14.76b)
RoCE = 21.25% (EBIT 3.26b / Capital Employed (Equity 14.76b + L.T.Debt 559.0m))
RoIC = 16.00% (NOPAT 2.49b / Invested Capital 15.59b)
WACC = 9.20% (E(33.51b)/V(34.69b) * Re(9.50%) + D(1.18b)/V(34.69b) * Rd(0.76%) * (1-Tc(0.23)))
Discount Rate = 9.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.90%
[DCF Debug] Terminal Value 71.96% ; FCFE base≈2.01b ; Y1≈1.89b ; Y5≈1.75b
Fair Price DCF = 50.23 (DCF Value 24.53b / Shares Outstanding 488.4m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: -33.31 | EPS CAGR: -56.18% | SUE: -4.0 | # QB: 0
Revenue Correlation: 75.17 | Revenue CAGR: 2.83% | SUE: 2.04 | # QB: 2
Additional Sources for CTSH Stock
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Fund Manager Positions: Dataroma | Stockcircle