COGNIZANT TECH SOLUTIONS-A (CTSH) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CTSH • US1924461023

77.08 USD
+0.24 (+0.31%)
At close: Feb 6, 2026
76.86 USD
-0.22 (-0.29%)
After Hours: 2/6/2026, 8:26:49 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, CTSH scores 6 out of 10 in our fundamental rating. CTSH was compared to 88 industry peers in the IT Services industry. CTSH gets an excellent profitability rating and is at the same time showing great financial health properties. CTSH has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

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 4 of the past 5 years.
  • CTSH had a positive operating cash flow in 4 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 1B 2B 3B

1.2 Ratios

  • The Return On Assets of CTSH (10.57%) is better than 86.36% of its industry peers.
  • CTSH has a Return On Equity of 14.28%. This is in the better half of the industry: CTSH outperforms 77.27% of its industry peers.
  • With an excellent Return On Invested Capital value of 14.88%, CTSH belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CTSH is significantly below the industry average of 29.07%.
  • The 3 year average ROIC (14.72%) for CTSH is below the current ROIC(14.88%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.57%
ROE 14.28%
ROIC 14.88%
ROA(3y)11.85%
ROA(5y)11.15%
ROE(3y)16.74%
ROE(5y)16.18%
ROIC(3y)14.72%
ROIC(5y)14.56%
CTSH Yearly ROA, ROE, ROICCTSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • CTSH's Profit Margin of 10.20% is fine compared to the rest of the industry. CTSH outperforms 77.27% of its industry peers.
  • CTSH's Profit Margin has been stable in the last couple of years.
  • CTSH has a Operating Margin of 15.70%. This is amongst the best in the industry. CTSH outperforms 82.95% of its industry peers.
  • CTSH's Operating Margin has been stable in the last couple of years.
  • CTSH has a Gross Margin (34.06%) 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 15.7%
PM (TTM) 10.2%
GM 34.06%
OM growth 3Y-0.1%
OM growth 5Y-0.74%
PM growth 3Y-0.57%
PM growth 5Y0.67%
GM growth 3Y-2.71%
GM growth 5Y-1.29%
CTSH Yearly Profit, Operating, Gross MarginsCTSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTSH is creating some value.
  • CTSH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CTSH Yearly Shares OutstandingCTSH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 7.14 indicates that CTSH is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.14, CTSH belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
  • CTSH has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
  • CTSH has a Debt to FCF ratio of 0.22. This is amongst the best in the industry. CTSH outperforms 89.77% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.04, CTSH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.22
Altman-Z 7.14
ROIC/WACC1.63
WACC9.15%
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 5B 10B

2.3 Liquidity

  • CTSH has a Current Ratio of 2.36. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
  • CTSH has a better Current ratio (2.36) than 67.05% of its industry peers.
  • CTSH has a Quick Ratio of 2.36. 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 2.36, CTSH is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2.36
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 2B 4B 6B 8B

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

3

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.
EPS 1Y (TTM)11.16%
EPS 3Y6.27%
EPS 5Y9.07%
EPS Q2Q%11.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.94%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
  • Based on estimates for the next years, CTSH will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y8.63%
EPS Next 2Y8.69%
EPS Next 3Y9.52%
EPS Next 5Y8.75%
Revenue Next Year4.66%
Revenue Next 2Y5.11%
Revenue Next 3Y4.62%
Revenue Next 5Y4.4%

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.
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 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 2 4 6

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.60, which indicates a correct valuation of CTSH.
  • Based on the Price/Earnings ratio, CTSH is valued a bit cheaper than 72.73% of the companies in the same industry.
  • CTSH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
  • CTSH is valuated correctly with a Price/Forward Earnings ratio of 13.44.
  • CTSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 73.86% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, CTSH is valued rather cheaply.
Industry RankSector Rank
PE 14.6
Fwd PE 13.44
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

  • CTSH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 76.14% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CTSH is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.03
EV/EBITDA 9.22
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)1.61
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 1.72%, CTSH has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.46, CTSH pays a better dividend. On top of this CTSH pays more dividend than 87.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, CTSH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.72%

5.2 History

  • The dividend of CTSH is nicely growing with an annual growth rate of 8.46%!
  • 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)8.46%
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

  • 28.62% of the earnings are spent on dividend by CTSH. This is a low number and 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.
DP28.62%
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 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

Find the best dividend stocksShow peers with best dividend

COGNIZANT TECH SOLUTIONS-A

NASDAQ:CTSH (2/6/2026, 8:26:49 PM)

After market: 76.86 -0.22 (-0.29%)

77.08

+0.24 (+0.31%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners104.24%
Inst Owner Change-1.51%
Ins Owners0.1%
Ins Owner Change-0.91%
Market Cap37.20B
Revenue(TTM)N/A
Net Income(TTM)2.13B
Analysts72.94
Price Target93.16 (20.86%)
Short Float %4.83%
Short Ratio5.02
Dividend
Industry RankSector Rank
Dividend Yield 1.72%
Yearly Dividend1.21
Dividend Growth(5Y)8.46%
DP28.62%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.25%
Min EPS beat(2)1.85%
Max EPS beat(2)4.65%
EPS beat(4)4
Avg EPS beat(4)3.22%
Min EPS beat(4)0.64%
Max EPS beat(4)5.75%
EPS beat(8)7
Avg EPS beat(8)4.16%
EPS beat(12)10
Avg EPS beat(12)4%
EPS beat(16)13
Avg EPS beat(16)3.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.15%
Revenue beat(8)0
Avg Revenue beat(8)-1.21%
Revenue beat(12)0
Avg Revenue beat(12)-1.16%
Revenue beat(16)0
Avg Revenue beat(16)-1.55%
PT rev (1m)1.71%
PT rev (3m)4.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE 14.6
Fwd PE 13.44
P/S 1.78
P/FCF 14.03
P/OCF 12.63
P/B 2.5
P/tB 5.88
EV/EBITDA 9.22
EPS(TTM)5.28
EY6.85%
EPS(NY)5.74
Fwd EY7.44%
FCF(TTM)5.49
FCFY7.13%
OCF(TTM)6.1
OCFY7.92%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.69
PEG (5Y)1.61
Graham Number60.55
Profitability
Industry RankSector Rank
ROA 10.57%
ROE 14.28%
ROCE 19.6%
ROIC 14.88%
ROICexc 17.32%
ROICexgc 43.02%
OM 15.7%
PM (TTM) 10.2%
GM 34.06%
FCFM 12.71%
ROA(3y)11.85%
ROA(5y)11.15%
ROE(3y)16.74%
ROE(5y)16.18%
ROIC(3y)14.72%
ROIC(5y)14.56%
ROICexc(3y)17.57%
ROICexc(5y)17.67%
ROICexgc(3y)42.32%
ROICexgc(5y)42.39%
ROCE(3y)19.4%
ROCE(5y)19.19%
ROICexgc growth 3Y-3.2%
ROICexgc growth 5Y-0.62%
ROICexc growth 3Y-4.44%
ROICexc growth 5Y-4.72%
OM growth 3Y-0.1%
OM growth 5Y-0.74%
PM growth 3Y-0.57%
PM growth 5Y0.67%
GM growth 3Y-2.71%
GM growth 5Y-1.29%
F-Score7
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.22
Debt/EBITDA 0.14
Cap/Depr 53.16%
Cap/Sales 1.41%
Interest Coverage 250
Cash Conversion 76.95%
Profit Quality 124.58%
Current Ratio 2.36
Quick Ratio 2.36
Altman-Z 7.14
F-Score7
WACC9.15%
ROIC/WACC1.63
Cap/Depr(3y)56.75%
Cap/Depr(5y)58.01%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.75%
Profit Quality(3y)91.3%
Profit Quality(5y)117.2%
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 5Y8.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.94%
Revenue Next Year4.66%
Revenue Next 2Y5.11%
Revenue Next 3Y4.62%
Revenue Next 5Y4.4%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year30.42%
EBIT Next 3Y13.67%
EBIT Next 5Y10.18%
FCF growth 1Y34.84%
FCF growth 3Y-6.23%
FCF growth 5Y-2.81%
OCF growth 1Y28.32%
OCF growth 3Y-5.22%
OCF growth 5Y-3.2%

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 6 / 10 to CTSH.


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

ChartMill assigns a valuation rating of 5 / 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 7 / 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 14.6 and the Price/Book (PB) ratio is 2.5.


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.