(CTSH) Cognizant Technology - Ratings and Ratios
Consulting, Technology, Outsourcing, Artificial Intelligence, Automation
CTSH EPS (Earnings per Share)
CTSH Revenue
Description: CTSH Cognizant Technology
Cognizant Technology Solutions Corp (NASDAQ:CTSH) is a professional services company that provides a broad range of services including consulting, technology, and outsourcing to various industries globally. The companys diversified service offerings include artificial intelligence (AI), digital engineering, cloud services, and business process automation, catering to industries such as healthcare, financial services, and technology.
The companys strategic focus on digital transformation and AI-led automation positions it well in the growing market for these services. With a presence in North America, Europe, and internationally, Cognizant has a global footprint that enables it to serve a diverse client base across multiple sectors. Key performance indicators (KPIs) to watch include revenue growth, particularly in its Financial Services and Health Sciences segments, which are significant contributors to its top line.
From a financial perspective, Cognizants market capitalization stands at approximately $37.8 billion, with a price-to-earnings (P/E) ratio of 16.17 and a forward P/E of 15.15, indicating a relatively stable valuation. The companys return on equity (RoE) of 16.35% is a positive indicator of its profitability. Other KPIs that could be of interest include its book-to-bill ratio, client acquisition rate, and utilization rates of its consultants, which can provide insights into its operational efficiency and future growth prospects.
To further analyze Cognizants potential, its essential to monitor its competitive positioning within the IT consulting and services industry, its ability to innovate and expand its service offerings, and its strategy for addressing the growing demand for digital transformation and AI services. Additionally, tracking its margins, particularly its operating margin, and its cash flow generation will be crucial in understanding its financial health and ability to invest in growth initiatives.
CTSH Stock Overview
| Market Cap in USD | 33,777m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1998-06-19 |
CTSH Stock Ratings
| Growth Rating | 4.49% |
| Fundamental | 84.6% |
| Dividend Rating | 59.9% |
| Return 12m vs S&P 500 | -24.0% |
| Analyst Rating | 3.33 of 5 |
CTSH Dividends
| Dividend Yield 12m | 1.69% |
| Yield on Cost 5y | 1.93% |
| Annual Growth 5y | 6.40% |
| Payout Consistency | 99.4% |
| Payout Ratio | 24.6% |
CTSH Growth Ratios
| Growth Correlation 3m | -78.5% |
| Growth Correlation 12m | -23.2% |
| Growth Correlation 5y | 18.4% |
| CAGR 5y | 5.52% |
| CAGR/Max DD 3y | 0.21 |
| CAGR/Mean DD 3y | 0.80 |
| Sharpe Ratio 12m | 0.84 |
| Alpha | 0.04 |
| Beta | 0.890 |
| Volatility | 22.97% |
| Current Volume | 3731.6k |
| Average Volume 20d | 3575.2k |
| Stop Loss | 67 (-3.1%) |
| Signal | 0.68 |
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) 84.55
| 1. Piotroski 9.0pt = 4.0 |
| 2. FCF Yield 6.98% = 3.49 |
| 3. FCF Margin 11.14% = 2.78 |
| 4. Debt/Equity 0.05 = 2.50 |
| 5. Debt/Ebitda 0.20 = 2.47 |
| 6. ROIC - WACC (= 6.70)% = 8.37 |
| 7. RoE 16.50% = 1.38 |
| 8. Rev. Trend 75.17% = 5.64 |
| 9. EPS Trend 78.47% = 3.92 |
What is the price of CTSH shares?
Over the past week, the price has changed by -2.27%, over one month by -1.33%, over three months by -13.32% and over the past year by -9.78%.
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 63.09 USD . This means that CTSH is currently overvalued and has a potential downside of -8.79%.
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 | 87 | 25.7% |
| Analysts Target Price | 87 | 25.7% |
| ValueRay Target Price | 70.7 | 2.2% |
Last update: 2025-09-11 04:35
CTSH Fundamental Data Overview
CCE Cash And Equivalents = 1.81b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 14.0284
P/E Forward = 12.8041
P/S = 1.6488
P/B = 2.2612
P/EG = 1.2681
Beta = 0.93
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 = 747.0m USD (Calculated: Short Term 188.0m + Long Term 559.0m)
Net Debt = -373.0m USD (from netDebt column, last quarter)
Enterprise Value = 32.72b USD (33.78b + Debt 747.0m - CCE 1.81b)
Interest Coverage Ratio = 60.30 (Ebit TTM 3.26b / Interest Expense TTM 54.0m)
FCF Yield = 6.98% (FCF TTM 2.28b / Enterprise Value 32.72b)
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)
Tobins Q-Ratio = 2.14 (Enterprise Value 32.72b / Book Value Of Equity 15.27b)
Interest Expense / Debt = 1.20% (Interest Expense 9.00m / Debt 747.0m)
Taxrate = 24.27% (713.0m / 2.94b)
NOPAT = 2.47b (EBIT 3.26b * (1 - 24.27%))
Current Ratio = 2.41 (Total Current Assets 7.61b / Total Current Liabilities 3.16b)
Debt / Equity = 0.05 (Debt 747.0m / last Quarter total Stockholder Equity 15.29b)
Debt / EBITDA = 0.20 (Net Debt -373.0m / EBITDA 3.81b)
Debt / FCF = 0.33 (Debt 747.0m / FCF TTM 2.28b)
Total Stockholder Equity = 14.76b (last 4 quarters mean)
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 / (Equity 14.76b + L.T.Debt 559.0m))
RoIC = 15.82% (NOPAT 2.47b / Invested Capital 15.59b)
WACC = 9.12% (E(33.78b)/V(34.52b) * Re(9.30%)) + (D(747.0m)/V(34.52b) * Rd(1.20%) * (1-Tc(0.24)))
Shares Correlation 3-Years: -96.19 | Cagr: -0.45%
Discount Rate = 9.30% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 72.67% ; FCFE base≈2.01b ; Y1≈1.89b ; Y5≈1.75b
Fair Price DCF = 51.80 (DCF Value 25.30b / Shares Outstanding 488.4m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: 78.47 | EPS CAGR: 4.20% | SUE: 1.16 | # QB: 1
Revenue Correlation: 75.17 | Revenue CAGR: 2.83% | SUE: N/A | # QB: None
Additional Sources for CTSH Stock
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