(CTSH) Cognizant Technology - Ratings and Ratios
Consulting, Outsourcing, Digital, Cloud, Automation
Dividends
| Dividend Yield | 1.48% |
| Yield on Cost 5y | 1.69% |
| Yield CAGR 5y | 8.06% |
| Payout Consistency | 99.4% |
| Payout Ratio | 24.1% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 22.7% |
| Value at Risk 5%th | 35.7% |
| Relative Tail Risk | -4.29% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.16 |
| Alpha | -6.38 |
| CAGR/Max DD | 0.62 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.543 |
| Beta | 0.849 |
| Beta Downside | 0.905 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.97% |
| Mean DD | 9.26% |
| Median DD | 8.05% |
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 |
| (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) 71.27
| 1. Piotroski 7.50pt |
| 2. FCF Yield 6.91% |
| 3. FCF Margin 12.71% |
| 4. Debt/Equity 0.08 |
| 5. Debt/Ebitda -0.30 |
| 6. ROIC - WACC (= -2.15)% |
| 7. RoE 14.31% |
| 8. Rev. Trend 75.98% |
| 9. EPS Trend 58.70% |
What is the price of CTSH shares?
Over the past week, the price has changed by +3.99%, over one month by +13.62%, over three months by +21.88% and over the past year by +6.13%.
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 | 85.2 | 1.5% |
| Analysts Target Price | 85.2 | 1.5% |
| ValueRay Target Price | 86.8 | 3.4% |
CTSH Fundamental Data Overview December 11, 2025
P/E Trailing = 18.7384
P/E Forward = 14.3472
P/S = 1.8956
P/B = 2.6143
P/EG = 1.4203
Beta = 0.967
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 = 38.35b USD (39.54b + Debt 1.17b - CCE 2.35b)
Interest Coverage Ratio = 70.60 (Ebit TTM 3.39b / Interest Expense TTM 48.0m)
FCF Yield = 6.91% (FCF TTM 2.65b / Enterprise Value 38.35b)
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 = 1.90 (Enterprise Value 38.35b / 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 = 8.88% (E(39.54b)/V(40.71b) * Re(9.14%) + D(1.17b)/V(40.71b) * Rd(0.68%) * (1-Tc(0.69)))
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.41%
[DCF Debug] Terminal Value 73.24% ; FCFE base≈2.25b ; Y1≈2.11b ; Y5≈1.96b
Fair Price DCF = 60.04 (DCF Value 28.98b / Shares Outstanding 482.6m; 5y FCF grow -8.14% → 3.0% )
EPS Correlation: 58.70 | EPS CAGR: 6.44% | SUE: 2.19 | # QB: 2
Revenue Correlation: 75.98 | Revenue CAGR: 3.40% | SUE: 3.47 | # QB: 3
EPS next Quarter (2026-03-31): EPS=1.34 | Chg30d=+0.000 | Revisions Net=+8 | Analysts=19
EPS next Year (2026-12-31): EPS=5.61 | Chg30d=+0.003 | Revisions Net=+1 | Growth EPS=+6.9% | Growth Revenue=+4.7%
Additional Sources for CTSH Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle