COGNIZANT TECH SOLUTIONS-A (CTSH) Stock Fundamental Analysis

NASDAQ:CTSH • US1924461023

66.78 USD
+1.6 (+2.45%)
Last: Feb 18, 2026, 01:54 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

CTSH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 87 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making CTSH a very profitable company, without any liquidiy or solvency issues. CTSH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CTSH was profitable.
  • In the past year CTSH had a positive cash flow from operations.
  • In the past 5 years CTSH has always 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 86.21% of the companies in the same industry.
  • CTSH has a better Return On Equity (14.85%) than 79.31% of its industry peers.
  • CTSH has a Return On Invested Capital of 14.73%. This is amongst the best in the industry. CTSH outperforms 90.80% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CTSH is above the industry average of 10.62%.
  • 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

  • CTSH has a better Profit Margin (10.56%) than 78.16% of its industry peers.
  • CTSH's Profit Margin has improved in the last couple of years.
  • CTSH has a Operating Margin of 15.76%. This is amongst the best in the industry. CTSH outperforms 82.76% of its industry peers.
  • CTSH's Operating Margin has improved in the last couple of years.
  • CTSH's Gross Margin of 33.72% is in line compared to the rest of the industry. CTSH outperforms 49.43% of its industry peers.
  • In the last couple of years the Gross Margin of CTSH has remained more or less at the same level.
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.
  • 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.
  • Compared to 1 year ago, CTSH has an improved debt to assets ratio.
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 6.16. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
  • CTSH has a better Altman-Z score (6.16) than 86.21% of its industry peers.
  • 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.
  • CTSH has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
  • 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 6.16
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

  • CTSH has a Current Ratio of 2.34. This indicates that CTSH is financially healthy and has no problem in meeting 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.
  • CTSH has a Quick Ratio of 2.34. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.34, CTSH is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
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

  • 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.
  • CTSH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.95%.
  • 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 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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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6

4. Valuation

4.1 Price/Earnings Ratio

  • CTSH is valuated correctly with a Price/Earnings ratio of 12.65.
  • Based on the Price/Earnings ratio, CTSH is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.16, CTSH is valued rather cheaply.
  • A Price/Forward Earnings ratio of 11.64 indicates a reasonable valuation of CTSH.
  • 75.86% of the companies in the same industry are more expensive than CTSH, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, CTSH is valued rather cheaply.
Industry RankSector Rank
PE 12.65
Fwd PE 11.64
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 the industry average as 75.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.33
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)1.47
PEG (5Y)1.39
EPS Next 2Y8.69%
EPS Next 3Y9.52%

More info and screens

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.01%, CTSH has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.54, CTSH pays a better dividend. On top of this CTSH pays more dividend than 87.36% of the companies listed in the same industry.
  • CTSH's Dividend Yield is comparable with the S&P500 average which is at 1.82.
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.
  • The dividend of CTSH is growing around the same rate as the earnings are growing. If this keeps up 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

More info and screens

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COGNIZANT TECH SOLUTIONS-A

NASDAQ:CTSH (2/18/2026, 1:54:06 PM)

66.78

+1.6 (+2.45%)

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 Cap31.99B
Revenue(TTM)21.11B
Net Income(TTM)2.23B
Analysts72.22
Price Target93.16 (39.5%)
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 12.65
Fwd PE 11.64
P/S 1.52
P/FCF 12.33
P/OCF 11.1
P/B 2.13
P/tB 4.93
EV/EBITDA N/A
EPS(TTM)5.28
EY7.91%
EPS(NY)5.74
Fwd EY8.59%
FCF(TTM)5.42
FCFY8.11%
OCF(TTM)6.02
OCFY9.01%
SpS44.07
BVpS31.35
TBVpS13.55
PEG (NY)1.47
PEG (5Y)1.39
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 6.16
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 12.65 and the Price/Book (PB) ratio is 2.13.


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.