(CTSH) Cognizant Technology - Ratings and Ratios
Consulting, Outsourcing, Digital, Cloud, Automation
CTSH EPS (Earnings per Share)
CTSH Revenue
Description: CTSH Cognizant Technology October 14, 2025
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 | 35,175m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1998-06-19 |
CTSH Stock Ratings
| Growth Rating | 9.41% |
| Fundamental | 74.6% |
| Dividend Rating | 60.2% |
| Return 12m vs S&P 500 | -15.4% |
| Analyst Rating | 3.33 of 5 |
CTSH Dividends
| Dividend Yield 12m | 1.65% |
| Yield on Cost 5y | 1.80% |
| Annual Growth 5y | 8.06% |
| Payout Consistency | 99.4% |
| Payout Ratio | 24.1% |
CTSH Growth Ratios
| Growth Correlation 3m | -29.4% |
| Growth Correlation 12m | -62.8% |
| Growth Correlation 5y | 13.9% |
| CAGR 5y | 13.38% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.50 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.48 |
| Sharpe Ratio 12m | 1.35 |
| Alpha | -17.59 |
| Beta | 0.945 |
| Volatility | 25.98% |
| Current Volume | 6359.7k |
| Average Volume 20d | 4092.3k |
| Stop Loss | 72.4 (-3%) |
| Signal | 1.29 |
Piotroski VR‑10 (Strict, 0-10) 8.5
| Net Income (2.13b TTM) > 0 and > 6% of Revenue (6% = 1.25b TTM) |
| FCFTA 0.13 (>2.0%) and ΔFCFTA 4.99pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 22.35% (prev 21.43%; Δ 0.92pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.15 (>3.0%) and CFO 2.94b > Net Income 2.13b (YES >=105%, WARN >=100%) |
| Net Debt (-1.17b) to EBITDA (3.94b) ratio: -0.30 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.36 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (487.0m) change vs 12m ago -1.81% (target <= -2.0% for YES) |
| Gross Margin 34.06% (prev 31.70%; Δ 2.35pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 103.5% (prev 96.27%; Δ 7.24pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 70.60 (EBITDA TTM 3.94b / Interest Expense TTM 48.0m) >= 6 (WARN >= 3) |
Altman Z'' 8.05
| (A) 0.23 = (Total Current Assets 8.09b - Total Current Liabilities 3.43b) / Total Assets 20.13b |
| (B) 0.74 = Retained Earnings (Balance) 14.94b / Total Assets 20.13b |
| (C) 0.17 = EBIT TTM 3.39b / Avg Total Assets 20.15b |
| (D) 2.84 = Book Value of Equity 14.88b / Total Liabilities 5.24b |
| Total Rating: 8.05 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.55
| 1. Piotroski 8.50pt = 3.50 |
| 2. FCF Yield 7.80% = 3.90 |
| 3. FCF Margin 12.71% = 3.18 |
| 4. Debt/Equity 0.08 = 2.50 |
| 5. Debt/Ebitda -0.30 = 2.50 |
| 6. ROIC - WACC (= -2.48)% = -3.09 |
| 7. RoE 14.31% = 1.19 |
| 8. Rev. Trend 83.56% = 6.27 |
| 9. EPS Trend 92.25% = 4.61 |
What is the price of CTSH shares?
Over the past week, the price has changed by +4.14%, over one month by +10.12%, over three months by +7.28% and over the past year by +0.59%.
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 68.66 USD . This means that CTSH is currently overvalued and has a potential downside of -8.04%.
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 | 84.8 | 13.6% |
| Analysts Target Price | 84.8 | 13.6% |
| ValueRay Target Price | 77 | 3.2% |
CTSH Fundamental Data Overview November 01, 2025
P/E Trailing = 16.8704
P/E Forward = 12.1212
P/S = 1.6865
P/B = 2.1404
P/EG = 1.2003
Beta = 0.945
Revenue TTM = 20.86b USD
EBIT TTM = 3.39b USD
EBITDA TTM = 3.94b USD
Long Term Debt = 875.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 187.0m USD (from shortTermDebt, last quarter)
Debt = 1.17b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.17b USD (from netDebt column, last quarter)
Enterprise Value = 33.99b USD (35.18b + Debt 1.17b - CCE 2.35b)
Interest Coverage Ratio = 70.60 (Ebit TTM 3.39b / Interest Expense TTM 48.0m)
FCF Yield = 7.80% (FCF TTM 2.65b / Enterprise Value 33.99b)
FCF Margin = 12.71% (FCF TTM 2.65b / Revenue TTM 20.86b)
Net Margin = 10.20% (Net Income TTM 2.13b / Revenue TTM 20.86b)
Gross Margin = 34.06% ((Revenue TTM 20.86b - Cost of Revenue TTM 13.75b) / Revenue TTM)
Gross Margin QoQ = 33.87% (prev 33.67%)
Tobins Q-Ratio = 1.69 (Enterprise Value 33.99b / Total Assets 20.13b)
Interest Expense / Debt = 0.68% (Interest Expense 8.00m / Debt 1.17b)
Taxrate = 69.11% (613.0m / 887.0m)
NOPAT = 1.05b (EBIT 3.39b * (1 - 69.11%))
Current Ratio = 2.36 (Total Current Assets 8.09b / Total Current Liabilities 3.43b)
Debt / Equity = 0.08 (Debt 1.17b / totalStockholderEquity, last quarter 14.90b)
Debt / EBITDA = -0.30 (Net Debt -1.17b / EBITDA 3.94b)
Debt / FCF = -0.44 (Net Debt -1.17b / FCF TTM 2.65b)
Total Stockholder Equity = 14.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.57% (Net Income 2.13b / Total Assets 20.13b)
RoE = 14.31% (Net Income TTM 2.13b / Total Stockholder Equity 14.87b)
RoCE = 21.52% (EBIT 3.39b / Capital Employed (Equity 14.87b + L.T.Debt 875.0m))
RoIC = 6.73% (NOPAT 1.05b / Invested Capital 15.56b)
WACC = 9.20% (E(35.18b)/V(36.35b) * Re(9.50%) + D(1.17b)/V(36.35b) * Rd(0.68%) * (1-Tc(0.69)))
Discount Rate = 9.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.41%
[DCF Debug] Terminal Value 71.96% ; FCFE base≈2.25b ; Y1≈2.11b ; Y5≈1.96b
Fair Price DCF = 56.78 (DCF Value 27.41b / Shares Outstanding 482.6m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: 92.25 | EPS CAGR: 12.31% | SUE: 2.19 | # QB: 2
Revenue Correlation: 83.56 | Revenue CAGR: 4.17% | SUE: 3.47 | # QB: 3
Additional Sources for CTSH Stock
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Fund Manager Positions: Dataroma | Stockcircle