COGNIZANT TECH SOLUTIONS-A (CTSH) Fundamental Analysis & Valuation

NASDAQ:CTSH • US1924461023

Current stock price

54.63 USD
-0.48 (-0.87%)
At close:
54.63 USD
0 (0%)
After Hours:

This CTSH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CTSH Profitability Analysis

1.1 Basic Checks

  • In the past year CTSH was profitable.
  • CTSH had a positive operating cash flow in the past year.
  • Each year in the past 5 years CTSH has been profitable.
  • CTSH had a positive operating cash flow in each of the past 5 years.
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

  • With an excellent Return On Assets value of 10.78%, CTSH belongs to the best of the industry, outperforming 84.27% of the companies in the same industry.
  • CTSH has a Return On Equity of 14.85%. This is in the better half of the industry: CTSH outperforms 73.03% of its industry peers.
  • The Return On Invested Capital of CTSH (14.73%) is better than 89.89% of its industry peers.
  • CTSH had an Average Return On Invested Capital over the past 3 years of 14.39%. This is above the industry average of 11.54%.
  • The 3 year average ROIC (14.39%) for CTSH is below the current ROIC(14.73%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 10.56%, CTSH is in the better half of the industry, outperforming 76.40% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CTSH has grown nicely.
  • With an excellent Operating Margin value of 15.76%, CTSH belongs to the best of the industry, outperforming 84.27% of the companies in the same industry.
  • CTSH's Operating Margin has improved in the last couple of years.
  • 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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8

2. CTSH Health Analysis

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.
  • The number of shares outstanding for CTSH has been reduced compared to 1 year ago.
  • 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

  • CTSH has an Altman-Z score of 5.60. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.60, CTSH belongs to the best of the industry, outperforming 84.27% of the companies in the same industry.
  • The Debt to FCF ratio of CTSH is 0.23, which is an excellent value as it means it would take CTSH, only 0.23 years of fcf income to pay off all of its debts.
  • CTSH has a better Debt to FCF ratio (0.23) than 88.76% of its industry peers.
  • A Debt/Equity ratio of 0.04 indicates that CTSH is not too dependend on debt financing.
  • CTSH has a better Debt to Equity ratio (0.04) than 73.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.23
Altman-Z 5.6
ROIC/WACC1.41
WACC10.42%
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 2.14 indicates that CTSH has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.14, CTSH perfoms like the industry average, outperforming 59.55% of the companies in the same industry.
  • CTSH has a Quick Ratio of 2.14. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
  • CTSH's Quick ratio of 2.14 is in line compared to the rest of the industry. CTSH outperforms 59.55% of its industry peers.
Industry RankSector Rank
Current Ratio 2.14
Quick Ratio 2.14
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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4

3. CTSH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.16% over the past year.
  • The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
  • Looking at the last year, CTSH shows a small growth in Revenue. The Revenue has grown by 6.95% in the last 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

  • CTSH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.90% yearly.
  • Based on estimates for the next years, CTSH will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y9.32%
EPS Next 2Y8.66%
EPS Next 3Y9.24%
EPS Next 5Y7.9%
Revenue Next Year6.19%
Revenue Next 2Y5.62%
Revenue Next 3Y5.65%
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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7

4. CTSH Valuation Analysis

4.1 Price/Earnings Ratio

  • CTSH is valuated reasonably with a Price/Earnings ratio of 10.35.
  • Compared to the rest of the industry, the Price/Earnings ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 75.28% of the companies listed in the same industry.
  • CTSH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.35.
  • Based on the Price/Forward Earnings ratio of 9.46, the valuation of CTSH can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, CTSH is valued a bit cheaper than 78.65% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CTSH to the average of the S&P500 Index (22.23), we can say CTSH is valued rather cheaply.
Industry RankSector Rank
PE 10.35
Fwd PE 9.46
CTSH Price Earnings VS Forward Price EarningsCTSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CTSH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CTSH is cheaper than 83.15% of the companies in the same industry.
  • CTSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 79.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.07
EV/EBITDA 6.46
CTSH Per share dataCTSH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CTSH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.11
PEG (5Y)1.14
EPS Next 2Y8.66%
EPS Next 3Y9.24%

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7

5. CTSH Dividend Analysis

5.1 Amount

  • CTSH has a Yearly Dividend Yield of 2.40%.
  • In the last 3 months the price of CTSH has falen by -33.43%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • CTSH's Dividend Yield is rather good when compared to the industry average which is at 1.21. CTSH pays more dividend than 88.76% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CTSH pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.4%

5.2 History

  • On average, the dividend of CTSH grows each year by 7.06%, which is quite nice.
  • CTSH has been paying a dividend for at least 10 years, so it has a reliable 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 Years6
Div Non Decr Years8
CTSH Yearly Dividends per shareCTSH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2Y8.66%
EPS Next 3Y9.24%
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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CTSH Fundamentals: All Metrics, Ratios and Statistics

COGNIZANT TECH SOLUTIONS-A

NASDAQ:CTSH (4/27/2026, 6:34:16 PM)

After market: 54.63 0 (0%)

54.63

-0.48 (-0.87%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners104.45%
Inst Owner Change0.22%
Ins Owners0.11%
Ins Owner Change1.37%
Market Cap26.13B
Revenue(TTM)21.11B
Net Income(TTM)2.23B
Analysts73.33
Price Target88.33 (61.69%)
Short Float %6.94%
Short Ratio4.64
Dividend
Industry RankSector Rank
Dividend Yield 2.4%
Yearly Dividend1.25
Dividend Growth(5Y)7.06%
DP27.35%
Div Incr Years6
Div Non Decr Years8
Ex-Date02-18
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)-4.17%
PT rev (3m)-1.31%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.43%
Valuation
Industry RankSector Rank
PE 10.35
Fwd PE 9.46
P/S 1.24
P/FCF 10.07
P/OCF 9.06
P/B 1.74
P/tB 4.02
EV/EBITDA 6.46
EPS(TTM)5.28
EY9.67%
EPS(NY)5.77
Fwd EY10.57%
FCF(TTM)5.43
FCFY9.93%
OCF(TTM)6.03
OCFY11.03%
SpS44.14
BVpS31.4
TBVpS13.57
PEG (NY)1.11
PEG (5Y)1.14
Graham Number61.0722 (11.79%)
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 0.23
Debt/EBITDA 0.14
Cap/Depr 52.36%
Cap/Sales 1.36%
Interest Coverage 92.42
Cash Conversion 74.36%
Profit Quality 116.37%
Current Ratio 2.14
Quick Ratio 2.14
Altman-Z 5.6
F-Score7
WACC10.42%
ROIC/WACC1.41
Cap/Depr(3y)54.76%
Cap/Depr(5y)54.25%
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 Y9.32%
EPS Next 2Y8.66%
EPS Next 3Y9.24%
EPS Next 5Y7.9%
Revenue 1Y (TTM)6.95%
Revenue growth 3Y2.8%
Revenue growth 5Y4.86%
Sales Q2Q%4.94%
Revenue Next Year6.19%
Revenue Next 2Y5.62%
Revenue Next 3Y5.65%
Revenue Next 5Y4.48%
EBIT growth 1Y9.95%
EBIT growth 3Y3.88%
EBIT growth 5Y6.8%
EBIT Next Year24.96%
EBIT Next 3Y13.01%
EBIT Next 5Y8.56%
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 Fundamental Analysis 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 7 / 10 to COGNIZANT TECH SOLUTIONS-A (CTSH). This can be considered as Undervalued.


What is the profitability of CTSH stock?

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


What is the valuation of COGNIZANT TECH SOLUTIONS-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for COGNIZANT TECH SOLUTIONS-A (CTSH) is 10.35 and the Price/Book (PB) ratio is 1.74.


What is the financial health of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?

The financial health rating of COGNIZANT TECH SOLUTIONS-A (CTSH) is 8 / 10.