COGNIZANT TECH SOLUTIONS-A (CTSH) Stock Fundamental Analysis

NASDAQ:CTSH • US1924461023

65.28 USD
-1.27 (-1.91%)
Last: Feb 17, 2026, 02:58 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, CTSH scores 7 out of 10 in our fundamental rating. CTSH was compared to 87 industry peers in the IT Services industry. CTSH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTSH has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • CTSH had positive earnings in the past year.
  • CTSH had a positive operating cash flow in the past year.
  • CTSH had positive earnings in each of the past 5 years.
  • In the past 5 years CTSH always reported a positive cash flow from operatings.
CTSH Yearly Net Income VS EBIT VS OCF VS FCFCTSH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • CTSH has a better Return On Assets (10.78%) than 86.21% of its industry peers.
  • Looking at the Return On Equity, with a value of 14.85%, CTSH is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.73%, CTSH belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CTSH is above the industry average of 10.62%.
  • The last Return On Invested Capital (14.73%) for CTSH is above the 3 year average (14.39%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.78%
ROE 14.85%
ROIC 14.73%
ROA(3y)11.17%
ROA(5y)11.66%
ROE(3y)15.49%
ROE(5y)16.58%
ROIC(3y)14.39%
ROIC(5y)14.72%
CTSH Yearly ROA, ROE, ROICCTSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • CTSH's Profit Margin of 10.56% is fine compared to the rest of the industry. CTSH outperforms 78.16% of its industry peers.
  • In the last couple of years the Profit Margin of CTSH has grown nicely.
  • CTSH has a better Operating Margin (15.76%) than 82.76% of its industry peers.
  • In the last couple of years the Operating Margin of CTSH has grown nicely.
  • CTSH has a Gross Margin (33.72%) which is comparable to the rest of the industry.
  • CTSH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.76%
PM (TTM) 10.56%
GM 33.72%
OM growth 3Y1.05%
OM growth 5Y1.86%
PM growth 3Y-3.58%
PM growth 5Y4.79%
GM growth 3Y-2.09%
GM growth 5Y-1.47%
CTSH Yearly Profit, Operating, Gross MarginsCTSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • CTSH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, CTSH has less shares outstanding
  • The number of shares outstanding for CTSH has been reduced compared to 5 years ago.
  • The debt/assets ratio for CTSH has been reduced compared to a year ago.
CTSH Yearly Shares OutstandingCTSH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
CTSH Yearly Total Debt VS Total AssetsCTSH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 6.23 indicates that CTSH is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.23, CTSH belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
  • The Debt to FCF ratio of CTSH is 0.22, which is an excellent value as it means it would take CTSH, only 0.22 years of fcf income to pay off all of its debts.
  • CTSH has a Debt to FCF ratio of 0.22. This is amongst the best in the industry. CTSH outperforms 88.51% of its industry peers.
  • A Debt/Equity ratio of 0.04 indicates that CTSH is not too dependend on debt financing.
  • CTSH has a Debt to Equity ratio of 0.04. This is in the better half of the industry: CTSH outperforms 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.22
Altman-Z 6.23
ROIC/WACC1.56
WACC9.42%
CTSH Yearly LT Debt VS Equity VS FCFCTSH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 2.34 indicates that CTSH has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.34, CTSH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • A Quick Ratio of 2.34 indicates that CTSH has no problem at all paying its short term obligations.
  • CTSH has a Quick ratio of 2.34. This is in the better half of the industry: CTSH outperforms 68.97% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 2.34
CTSH Yearly Current Assets VS Current LiabilitesCTSH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • CTSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.16%, which is quite good.
  • CTSH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
  • The Revenue has been growing slightly by 6.95% in the past year.
  • Measured over the past years, CTSH shows a small growth in Revenue. The Revenue has been growing by 4.86% on average per year.
EPS 1Y (TTM)11.16%
EPS 3Y6.27%
EPS 5Y9.07%
EPS Q2Q%11.57%
Revenue 1Y (TTM)6.95%
Revenue growth 3Y2.8%
Revenue growth 5Y4.86%
Sales Q2Q%4.94%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.90% on average over the next years.
  • CTSH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y8.63%
EPS Next 2Y8.69%
EPS Next 3Y9.52%
EPS Next 5Y7.9%
Revenue Next Year4.66%
Revenue Next 2Y5.11%
Revenue Next 3Y4.62%
Revenue Next 5Y4.48%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CTSH Yearly Revenue VS EstimatesCTSH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
CTSH Yearly EPS VS EstimatesCTSH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.36, the valuation of CTSH can be described as correct.
  • 75.86% of the companies in the same industry are more expensive than CTSH, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.19. CTSH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 11.38 indicates a reasonable valuation of CTSH.
  • CTSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 77.01% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, CTSH is valued rather cheaply.
Industry RankSector Rank
PE 12.36
Fwd PE 11.38
CTSH Price Earnings VS Forward Price EarningsCTSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, CTSH is valued a bit cheaper than 72.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.05
EV/EBITDA N/A
CTSH Per share dataCTSH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • CTSH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CTSH may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.36
EPS Next 2Y8.69%
EPS Next 3Y9.52%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • CTSH has a Yearly Dividend Yield of 2.01%.
  • CTSH's Dividend Yield is rather good when compared to the industry average which is at 0.54. CTSH pays more dividend than 87.36% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CTSH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

5.2 History

  • The dividend of CTSH is nicely growing with an annual growth rate of 7.06%!
  • CTSH has been paying a dividend for over 5 years, so it has already some track record.
  • CTSH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.06%
Div Incr Years5
Div Non Decr Years7
CTSH Yearly Dividends per shareCTSH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • CTSH pays out 27.35% of its income as dividend. This is a sustainable payout ratio.
  • CTSH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.35%
EPS Next 2Y8.69%
EPS Next 3Y9.52%
CTSH Yearly Income VS Free CF VS DividendCTSH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
CTSH Dividend Payout.CTSH Dividend Payout, showing the Payout Ratio.CTSH Dividend Payout.PayoutRetained Earnings

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COGNIZANT TECH SOLUTIONS-A

NASDAQ:CTSH (2/17/2026, 2:58:06 PM)

65.28

-1.27 (-1.91%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners104.24%
Inst Owner Change-0.58%
Ins Owners0.1%
Ins Owner Change-0.84%
Market Cap31.27B
Revenue(TTM)21.11B
Net Income(TTM)2.23B
Analysts72.22
Price Target93.16 (42.71%)
Short Float %5.27%
Short Ratio4.52
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend1.25
Dividend Growth(5Y)7.06%
DP27.35%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.21%
Max EPS beat(2)4.65%
EPS beat(4)4
Avg EPS beat(4)1.84%
Min EPS beat(4)0.21%
Max EPS beat(4)4.65%
EPS beat(8)7
Avg EPS beat(8)2.73%
EPS beat(12)11
Avg EPS beat(12)4.28%
EPS beat(16)13
Avg EPS beat(16)3.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-0.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.15%
Revenue beat(8)0
Avg Revenue beat(8)-1.15%
Revenue beat(12)0
Avg Revenue beat(12)-1.23%
Revenue beat(16)0
Avg Revenue beat(16)-1.52%
PT rev (1m)5.86%
PT rev (3m)8.36%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 12.36
Fwd PE 11.38
P/S 1.48
P/FCF 12.05
P/OCF 10.85
P/B 2.08
P/tB 4.82
EV/EBITDA N/A
EPS(TTM)5.28
EY8.09%
EPS(NY)5.74
Fwd EY8.79%
FCF(TTM)5.42
FCFY8.3%
OCF(TTM)6.02
OCFY9.22%
SpS44.07
BVpS31.35
TBVpS13.55
PEG (NY)1.43
PEG (5Y)1.36
Graham Number61.02
Profitability
Industry RankSector Rank
ROA 10.78%
ROE 14.85%
ROCE 19.53%
ROIC 14.73%
ROICexc 16.59%
ROICexgc 38.03%
OM 15.76%
PM (TTM) 10.56%
GM 33.72%
FCFM 12.29%
ROA(3y)11.17%
ROA(5y)11.66%
ROE(3y)15.49%
ROE(5y)16.58%
ROIC(3y)14.39%
ROIC(5y)14.72%
ROICexc(3y)16.77%
ROICexc(5y)17.49%
ROICexgc(3y)40.17%
ROICexgc(5y)41.84%
ROCE(3y)19.09%
ROCE(5y)19.52%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y-0.7%
ROICexc growth 3Y-3.81%
ROICexc growth 5Y-0.41%
OM growth 3Y1.05%
OM growth 5Y1.86%
PM growth 3Y-3.58%
PM growth 5Y4.79%
GM growth 3Y-2.09%
GM growth 5Y-1.47%
F-Score7
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.22
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 1.36%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 116.37%
Current Ratio 2.34
Quick Ratio 2.34
Altman-Z 6.23
F-Score7
WACC9.42%
ROIC/WACC1.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1.5%
Cap/Sales(5y)1.54%
Profit Quality(3y)97.54%
Profit Quality(5y)98.79%
High Growth Momentum
Growth
EPS 1Y (TTM)11.16%
EPS 3Y6.27%
EPS 5Y9.07%
EPS Q2Q%11.57%
EPS Next Y8.63%
EPS Next 2Y8.69%
EPS Next 3Y9.52%
EPS Next 5Y7.9%
Revenue 1Y (TTM)6.95%
Revenue growth 3Y2.8%
Revenue growth 5Y4.86%
Sales Q2Q%4.94%
Revenue Next Year4.66%
Revenue Next 2Y5.11%
Revenue Next 3Y4.62%
Revenue Next 5Y4.48%
EBIT growth 1Y9.95%
EBIT growth 3Y3.88%
EBIT growth 5Y6.8%
EBIT Next Year22.65%
EBIT Next 3Y11.77%
EBIT Next 5Y8.57%
FCF growth 1Y42.04%
FCF growth 3Y5.09%
FCF growth 5Y-2.2%
OCF growth 1Y35.73%
OCF growth 3Y3.93%
OCF growth 5Y-2.66%

COGNIZANT TECH SOLUTIONS-A / CTSH FAQ

What is the ChartMill fundamental rating of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?

ChartMill assigns a fundamental rating of 7 / 10 to CTSH.


What is the valuation status of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?

ChartMill assigns a valuation rating of 6 / 10 to COGNIZANT TECH SOLUTIONS-A (CTSH). This can be considered as Fairly Valued.


Can you provide the profitability details for COGNIZANT TECH SOLUTIONS-A?

COGNIZANT TECH SOLUTIONS-A (CTSH) has a profitability rating of 8 / 10.


What are the PE and PB ratios of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?

The Price/Earnings (PE) ratio for COGNIZANT TECH SOLUTIONS-A (CTSH) is 12.36 and the Price/Book (PB) ratio is 2.08.


Can you provide the expected EPS growth for CTSH stock?

The Earnings per Share (EPS) of COGNIZANT TECH SOLUTIONS-A (CTSH) is expected to grow by 8.63% in the next year.