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About The Company

CEO

Mr. Ravi Kumar Singisetti

Market Cap

33.57 Billion USD

Sector

Technology

Website

https://www.cognizant.com

Last Update

2/22/2024, 12:00:00 PM

Description

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.

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Overview

Value

45

Growth

43

Health

52

Management

59

Analyst Opinion

77

Total

55

All Scores Out Of 100

Best Features

  • Has a low level of debt
  • Has a history of share buybacks
  • Low risk of bankruptcy
  • Price-to-earnings ratio of 18.2 is lower than the market average (19.6x)
  • Liked by analysts
  • Has strong dividend growth
  • Low preportion of income is paid as dividend

Risk Factors

  • Earnings have declined recently
  • Disliked by Twitter users

Market Peers

CTSH

Key Figures

PE Ratio (TTM)

18.17

Margin Of Safety (DCF)

18.20%

Revenue Growth (5 Year Average)

6.93%

Ratings Consensus

Buy

Share Buybacks

2.67%

Dividend Yeild (TTM)

1.55%

Valuation

Value Score

45

  • Price-to-earnings ratio of 18.2 is lower than the market average (19.6x)
  • Free-cashflow-yeild of 5.27% is better than the market average (4.7%)
  • Margin-of-safety of 18.20% is better than the market average (17.95%)
  • Estimated intrinsic-value of 90.64 USD is higher than current price ( 67.52 USD)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 98.2 USD

Current Price: 76.7 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

18.17x

Free Cashflow Yeild

5.27%

PE/Earnings Growth

1.55

Price/Book

2.89x

Growth

Growth Score

43

  • 5 Year Average Earnings growth of 16.06% is higher than the market average (14.48%)
  • 5 Year Average Revenue growth of 6.93% is lower than the market average (10.97%)
  • Revenue growth has slowed this year
  • Earnings growth has slowed this year
  • 5 Year Average Free Cashflow growth of 2.61% is lower than the market average (12.35%)
  • Free Cashflow growth has slowed this year

Revenue Growth

6.93%

Earnings Growth

16.06%

Cashflow Growth

2.61%

Health

Health Score

52

  • Low risk of bankruptcy
  • Has a low level of debt
  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow

Altman Z Score

7.33

Piostroski Score

7.00

Debt/Equity

0.12x

Current Assets/Liabilities

2.17x

Free Cashflow/Total Debt

1.46x

Debt/Capital

0.21x

Dividend

Secure Dividend Score

65

  • Dividend is likely safe
  • Long term dividend payout ratio of 24.57% is considered good
  • Payout ratio (TTM) of 27.80% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Dividend growth has been accelerating recently
  • Dividend yeild of 1.55% is less than the market average (1.85%)
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

1.55%

Dividend Growth

10.81%

Payout Ratio (Earnings)

27.80%

Payout Ratio (Cashflow)

29.36%

Management

Management Score

59

  • Has a history of returning value to shareholders through stock buybacks
  • Has returned higher dividends when earnings have risen
  • Return-on-equity of 17.88% is higher than the market average (15%)
  • Return-on-capital-employed of 14.34% is higher than the market average (10%)
  • Has repurchased shares when overvalued

Average Buybacks/Dilution

2.67%

Recent Buybacks/Dilution

-3.89%

5 Year Price Volitility

13.45%

Return On Assets

12.33%

Return On Capital Employed

14.34%

Return On Equity

17.88%

Return On Free Cashflow

N/A

Return On Investments

298.57%

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

77

  • Ratings consensus is Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Cognizant Technology Solutions Corporation

Currency

USD

Beta

1.102459

Vol Avg

3532911

Ceo

Mr. Ravi Kumar Singisetti

Cik

0001058290

Cusip

192446102

Exchange

NASDAQ Global Select

Full Time Employees

351500

Industry

Information Technology Services

Sector

Technology

Ipo Date

1998-06-19

Address

300 Frank West Burr Boulevard

City

Teaneck

State

NJ

Country

US

Zip

07666

Phone

201 801 0233

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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