Overview Dividends

(CTSH) Cognizant Technology - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1924461023

Consulting, Outsourcing, Digital, Cloud, Automation

IT Consulting & Other Services
Market Cap in USD: 36,591m

IPO / Inception: 1998-06-19
Return 12m vs S&P 500: -15.7%

EPS (Earnings per Share)

EPS CAGR: 6.44%
EPS Trend: 80.5%

Last SUE: 2.19
Qual. Beats: 2

Revenue

Rev. CAGR: 3.40%
Rev. Trend: 76.0%

Last SUE: 3.47
Qual. Beats: 3

Dividends

Dividend Yield	1.61%
Yield on Cost 5y	1.71%
Yield CAGR 5y	8.06%
Payout Consistency	99.4%
Payout Ratio	24.1%

Risk via 10d forecast
Volatility	24.7%
Value at Risk 5%th	38.8%
Relative Tail Risk	-4.49%

Reward TTM
Sharpe Ratio	-0.14
Alpha	-15.40
CAGR/Max DD	0.33

Character TTM
Hurst Exponent	0.459
Beta	0.851
Beta Downside	0.902

Drawdowns 3y
Max DD	26.97%
Mean DD	9.37%
Median DD	8.16%

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.

Piotroski VR‑10 (Strict, 0-10) 7.5

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 34.36%; Δ -0.30pp) >=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

(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) 72.66

1. Piotroski 7.50pt

2. FCF Yield 7.49%

3. FCF Margin 12.71%

4. Debt/Equity 0.08

5. Debt/Ebitda -0.30

6. ROIC - WACC (= -2.14)%

7. RoE 14.31%

8. Rev. Trend 75.98%

9. EPS Trend 80.53%

What is the price of CTSH shares?

As of November 27, 2025, the stock is trading at USD 77.05 with a total of 4,471,168 shares traded.
Over the past week, the price has changed by +6.58%, over one month by +13.72%, over three months by +7.96% and over the past year by -3.41%.

Is CTSH a buy, sell or hold?

Cognizant Technology has received a consensus analysts rating of 3.33. Therefor, it is recommend to hold CTSH.

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	84.7	9.9%
Analysts Target Price	84.7	9.9%
ValueRay Target Price	78.9	2.4%

CTSH Fundamental Data Overview November 26, 2025

Market Cap USD = 36.59b (36.59b USD * 1.0 USD.USD)
P/E Trailing = 17.3426
P/E Forward = 13.5135
P/S = 1.7544
P/B = 2.4633
P/EG = 1.3383
Beta = 0.974
Revenue TTM = 20.86b USD
EBIT TTM = 3.39b USD
EBITDA TTM = 3.94b USD
Long Term Debt = 551.0m USD (from longTermDebt, last quarter)
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 = 35.41b USD (36.59b + Debt 1.17b - CCE 2.35b)
Interest Coverage Ratio = 70.60 (Ebit TTM 3.39b / Interest Expense TTM 48.0m)
FCF Yield = 7.49% (FCF TTM 2.65b / Enterprise Value 35.41b)
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 = 1.76 (Enterprise Value 35.41b / 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 = 21.97% (EBIT 3.39b / Capital Employed (Equity 14.87b + L.T.Debt 551.0m))
RoIC = 6.73% (NOPAT 1.05b / Invested Capital 15.54b)
WACC = 8.87% (E(36.59b)/V(37.76b) * Re(9.15%) + D(1.17b)/V(37.76b) * Rd(0.68%) * (1-Tc(0.69)))
Discount Rate = 9.15% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.41%
[DCF Debug] Terminal Value 73.21% ; FCFE base≈2.25b ; Y1≈2.11b ; Y5≈1.96b
Fair Price DCF = 59.95 (DCF Value 28.93b / Shares Outstanding 482.6m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: 80.53 | EPS CAGR: 6.44% | SUE: 2.19 | # QB: 2
Revenue Correlation: 75.98 | Revenue CAGR: 3.40% | SUE: 3.47 | # QB: 3

Additional Sources for CTSH Stock

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Fund Manager Positions: Dataroma | Stockcircle