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CONDUENT INC (CNDT) Stock Fundamental Analysis

NASDAQ:CNDT - Nasdaq - US2067871036 - Common Stock - Currency: USD

3.98  -0.04 (-1%)

After market: 3.98 0 (0%)

Fundamental Rating

2

Overall CNDT gets a fundamental rating of 2 out of 10. We evaluated CNDT against 82 industry peers in the IT Services industry. There are concerns on the financial health of CNDT while its profitability can be described as average. CNDT does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

CNDT had negative earnings in the past year.
CNDT had a positive operating cash flow in the past year.
CNDT had negative earnings in each of the past 5 years.
Each year in the past 5 years CNDT had a positive operating cash flow.
CNDT Yearly Net Income VS EBIT VS OCF VS FCFCNDT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500M -1B -1.5B

1.2 Ratios

CNDT has a better Return On Assets (15.28%) than 94.94% of its industry peers.
CNDT has a better Return On Equity (42.59%) than 96.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.67%, CNDT is in line with its industry, outperforming 45.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNDT is significantly below the industry average of 9.86%.
Industry RankSector Rank
ROA 15.28%
ROE 42.59%
ROIC 0.67%
ROA(3y)-5.33%
ROA(5y)-12.41%
ROE(3y)-20.27%
ROE(5y)-41.04%
ROIC(3y)3.72%
ROIC(5y)2.53%
CNDT Yearly ROA, ROE, ROICCNDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80 -100

1.3 Margins

The Profit Margin of CNDT (12.37%) is better than 88.61% of its industry peers.
CNDT has a Operating Margin (0.48%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CNDT has remained more or less at the same level.
CNDT has a worse Gross Margin (19.98%) than 81.01% of its industry peers.
In the last couple of years the Gross Margin of CNDT has remained more or less at the same level.
Industry RankSector Rank
OM 0.48%
PM (TTM) 12.37%
GM 19.98%
OM growth 3Y72.64%
OM growth 5Y-0.98%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.75%
GM growth 5Y-0.04%
CNDT Yearly Profit, Operating, Gross MarginsCNDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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2

2. Health

2.1 Basic Checks

CNDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CNDT has less shares outstanding than it did 1 year ago.
CNDT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CNDT is higher compared to a year ago.
CNDT Yearly Shares OutstandingCNDT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
CNDT Yearly Total Debt VS Total AssetsCNDT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

CNDT has an Altman-Z score of 0.53. This is a bad value and indicates that CNDT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.53, CNDT is not doing good in the industry: 75.95% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.70 indicates that CNDT is somewhat dependend on debt financing.
CNDT's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. CNDT is outperformed by 62.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF N/A
Altman-Z 0.53
ROIC/WACC0.07
WACC9.67%
CNDT Yearly LT Debt VS Equity VS FCFCNDT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.75 indicates that CNDT should not have too much problems paying its short term obligations.
CNDT has a Current ratio (1.75) which is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that CNDT should not have too much problems paying its short term obligations.
The Quick ratio of CNDT (1.75) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.75
CNDT Yearly Current Assets VS Current LiabilitesCNDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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2

3. Growth

3.1 Past

CNDT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -385.71%.
CNDT shows a decrease in Revenue. In the last year, the revenue decreased by -6.55%.
CNDT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.15% yearly.
EPS 1Y (TTM)-385.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-55.56%
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y-3.66%
Revenue growth 5Y-7.15%
Sales Q2Q%-13.41%

3.2 Future

Based on estimates for the next years, CNDT will show a very strong growth in Earnings Per Share. The EPS will grow by 87.48% on average per year.
The Revenue is expected to decrease by -3.18% on average over the next years.
EPS Next Y-828.2%
EPS Next 2Y13.4%
EPS Next 3Y87.48%
EPS Next 5YN/A
Revenue Next Year-9.25%
Revenue Next 2Y-5.9%
Revenue Next 3Y-3.18%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CNDT Yearly Revenue VS EstimatesCNDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
CNDT Yearly EPS VS EstimatesCNDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1

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2

4. Valuation

4.1 Price/Earnings Ratio

CNDT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for CNDT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
CNDT Price Earnings VS Forward Price EarningsCNDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100

4.2 Price Multiples

CNDT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNDT is cheaper than 94.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.13
CNDT Per share dataCNDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

CNDT's earnings are expected to grow with 87.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y87.48%

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0

5. Dividend

5.1 Amount

No dividends for CNDT!.
Industry RankSector Rank
Dividend Yield N/A

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CONDUENT INC

NASDAQ:CNDT (1/24/2025, 8:00:01 PM)

After market: 3.98 0 (0%)

3.98

-0.04 (-1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners73.53%
Inst Owner Change0.11%
Ins Owners7.9%
Ins Owner Change-7.99%
Market Cap636.36M
Analysts84.44
Price Target6.33 (59.05%)
Short Float %1.56%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.05
Dividend Growth(5Y)-0.38%
DP2.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.77%
Min EPS beat(2)11.45%
Max EPS beat(2)50.09%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)1.05%
Revenue beat(4)3
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)1.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)3
Avg Revenue beat(12)-1.07%
Revenue beat(16)4
Avg Revenue beat(16)-1.03%
PT rev (1m)0%
PT rev (3m)7.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-483.33%
EPS NY rev (1m)0%
EPS NY rev (3m)14.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.91%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.41%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.18
P/FCF N/A
P/OCF 20.53
P/B 0.62
P/tB 3.62
EV/EBITDA 4.13
EPS(TTM)-0.34
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)-0.38
FCFYN/A
OCF(TTM)0.19
OCFY4.87%
SpS21.95
BVpS6.37
TBVpS1.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 15.28%
ROE 42.59%
ROCE 0.84%
ROIC 0.67%
ROICexc 0.83%
ROICexgc 1.73%
OM 0.48%
PM (TTM) 12.37%
GM 19.98%
FCFM N/A
ROA(3y)-5.33%
ROA(5y)-12.41%
ROE(3y)-20.27%
ROE(5y)-41.04%
ROIC(3y)3.72%
ROIC(5y)2.53%
ROICexc(3y)4.66%
ROICexc(5y)3.15%
ROICexgc(3y)9.4%
ROICexgc(5y)6.68%
ROCE(3y)4.71%
ROCE(5y)3.21%
ROICexcg growth 3Y73.62%
ROICexcg growth 5Y-12.95%
ROICexc growth 3Y90.85%
ROICexc growth 5Y11.58%
OM growth 3Y72.64%
OM growth 5Y-0.98%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.75%
GM growth 5Y-0.04%
F-Score6
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF N/A
Debt/EBITDA 3
Cap/Depr 40.99%
Cap/Sales 2.59%
Interest Coverage 250
Cash Conversion 12.97%
Profit Quality N/A
Current Ratio 1.75
Quick Ratio 1.75
Altman-Z 0.53
F-Score6
WACC9.67%
ROIC/WACC0.07
Cap/Depr(3y)47.84%
Cap/Depr(5y)44.13%
Cap/Sales(3y)3.34%
Cap/Sales(5y)3.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-385.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-55.56%
EPS Next Y-828.2%
EPS Next 2Y13.4%
EPS Next 3Y87.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y-3.66%
Revenue growth 5Y-7.15%
Sales Q2Q%-13.41%
Revenue Next Year-9.25%
Revenue Next 2Y-5.9%
Revenue Next 3Y-3.18%
Revenue Next 5YN/A
EBIT growth 1Y-84.4%
EBIT growth 3Y66.31%
EBIT growth 5Y-8.05%
EBIT Next Year75.04%
EBIT Next 3Y41.02%
EBIT Next 5YN/A
FCF growth 1Y-372.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.58%
OCF growth 3Y-17.93%
OCF growth 5Y-20.65%