83 USD
-1.14 (-1.35%)
83 USD
0 (0%)
CTSH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 88 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. These ratings could make CTSH a good candidate for quality investing.
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.
In the past 5 years CTSH has always been profitable.
In the past 5 years CTSH always reported a positive cash flow from operatings.
1.2 Ratios
CTSH's Return On Assets of 10.57% is amongst the best of the industry. CTSH outperforms 86.36% of its industry peers.
With a decent Return On Equity value of 14.28%, CTSH is doing good in the industry, outperforming 77.27% of the companies in the same industry.
CTSH has a Return On Invested Capital of 14.88%. This is amongst the best in the industry. CTSH outperforms 89.77% of its industry peers.
CTSH had an Average Return On Invested Capital over the past 3 years of 14.72%. This is significantly below the industry average of 29.60%.
The 3 year average ROIC (14.72%) for CTSH is below the current ROIC(14.88%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
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.
In the last couple of years the Operating Margin of CTSH has remained more or less at the same level.
With a Gross Margin value of 34.06%, CTSH perfoms like the industry average, outperforming 51.14% of the companies in the same industry.
In the last couple of years the Gross Margin of CTSH has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CTSH is still creating some value.
Compared to 1 year ago, CTSH has less shares outstanding
Compared to 5 years ago, CTSH has less shares outstanding
The debt/assets ratio for CTSH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.48 indicates that CTSH is not in any danger for bankruptcy at the moment.
CTSH has a better Altman-Z score (7.48) than 86.36% 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.
Looking at the Debt to FCF ratio, with a value of 0.22, CTSH belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
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 73.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.48 |
ROIC/WACC1.66
WACC8.94%
2.3 Liquidity
A Current Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
CTSH's Current ratio of 2.36 is fine compared to the rest of the industry. CTSH outperforms 69.32% 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.
CTSH's Quick ratio of 2.36 is fine compared to the rest of the industry. CTSH outperforms 71.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.90% over the past year.
CTSH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
The Revenue has been growing slightly by 7.44% in the past year.
CTSH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.29% yearly.
EPS 1Y (TTM)8.9%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.2%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
3.2 Future
CTSH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
CTSH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y12.68%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
EPS Next 5Y9.23%
Revenue Next Year6.88%
Revenue Next 2Y5.79%
Revenue Next 3Y5.75%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.15, CTSH is valued correctly.
CTSH's Price/Earnings ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 73.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. CTSH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.49, the valuation of CTSH can be described as correct.
CTSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 77.27% of the companies in the same industry.
CTSH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 79.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CTSH is valued a bit cheaper than 71.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 10 |
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)1.27
PEG (5Y)4.62
EPS Next 2Y9.8%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, CTSH has a reasonable but not impressive dividend return.
CTSH's Dividend Yield is rather good when compared to the industry average which is at 0.43. CTSH pays more dividend than 87.50% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.00, CTSH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
5.3 Sustainability
CTSH pays out 28.62% 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.
DP28.62%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
83
-1.14 (-1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.25%
Inst Owner Change1.49%
Ins Owners0.1%
Ins Owner Change-0.27%
Market Cap40.06B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts73.53
Price Target88 (6.02%)
Short Float %5.7%
Short Ratio5.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)1.59%
PT rev (3m)-0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 14.49 | ||
| P/S | 1.92 | ||
| P/FCF | 15.11 | ||
| P/OCF | 13.6 | ||
| P/B | 2.69 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | 10 |
EPS(TTM)5.14
EY6.19%
EPS(NY)5.73
Fwd EY6.9%
FCF(TTM)5.49
FCFY6.62%
OCF(TTM)6.1
OCFY7.35%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.27
PEG (5Y)4.62
Graham Number59.75
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.48 |
F-Score7
WACC8.94%
ROIC/WACC1.66
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)8.9%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.2%
EPS Next Y12.68%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
EPS Next 5Y9.23%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
Revenue Next Year6.88%
Revenue Next 2Y5.79%
Revenue Next 3Y5.75%
Revenue Next 5Y4.89%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year30.42%
EBIT Next 3Y13.64%
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 7 / 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 16.15 and the Price/Book (PB) ratio is 2.69.
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 12.68% in the next year.