85.26 USD
-0.51 (-0.59%)
85.26 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CTSH. 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, CTSH could be worth investigating further for quality investing!.
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.
Each year in the past 5 years CTSH has been profitable.
Each year in the past 5 years CTSH had a positive operating cash flow.
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.
CTSH has a better Return On Equity (14.28%) than 77.27% of its industry peers.
The Return On Invested Capital of CTSH (14.88%) is better than 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 28.99%.
The last Return On Invested Capital (14.88%) for CTSH is above the 3 year average (14.72%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of CTSH has remained more or less at the same level.
With an excellent Operating Margin value of 15.70%, CTSH belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
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 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
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.
Compared to 5 years ago, CTSH has less shares outstanding
CTSH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.60 indicates that CTSH is not in any danger for bankruptcy at the moment.
CTSH has a Altman-Z score of 7.60. This is amongst the best in the industry. CTSH outperforms 85.23% of its industry peers.
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's Debt to FCF ratio of 0.22 is amongst the best of 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.
CTSH's Debt to Equity ratio of 0.04 is fine compared to the rest of the industry. CTSH outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.6 |
ROIC/WACC1.64
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, CTSH is in the better half of the industry, outperforming 67.05% of the companies in the same industry.
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.
With a decent Quick ratio value of 2.36, CTSH is doing good in the industry, outperforming 70.45% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
The Revenue has been growing slightly by 7.44% in the past year.
The Revenue has been growing slightly by 3.29% on average over the past years.
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.
Based on estimates for the next years, CTSH will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CTSH is valuated correctly with a Price/Earnings ratio of 16.59.
Based on the Price/Earnings ratio, CTSH is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. CTSH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.89, the valuation of CTSH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 76.14% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. CTSH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
80.68% of the companies in the same industry are more expensive than CTSH, based on the Enterprise Value to EBITDA ratio.
73.86% of the companies in the same industry are more expensive than CTSH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.52 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CTSH may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)4.74
EPS Next 2Y9.8%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
CTSH has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
CTSH's Dividend Yield is rather good when compared to the industry average which is at 0.42. CTSH pays more dividend than 87.50% of the companies in the same industry.
CTSH's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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.
As CTSH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
The dividend of CTSH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.62%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
85.26
-0.51 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.24%
Inst Owner Change0.17%
Ins Owners0.1%
Ins Owner Change-0.91%
Market Cap41.15B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts72.94
Price Target88 (3.21%)
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)1.38%
PT rev (3m)-0.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.1%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 14.89 | ||
| P/S | 1.97 | ||
| P/FCF | 15.52 | ||
| P/OCF | 13.97 | ||
| P/B | 2.76 | ||
| P/tB | 6.51 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)5.14
EY6.03%
EPS(NY)5.73
Fwd EY6.72%
FCF(TTM)5.49
FCFY6.44%
OCF(TTM)6.1
OCFY7.16%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.31
PEG (5Y)4.74
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 | 7.6 |
F-Score7
WACC9.07%
ROIC/WACC1.64
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 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 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 16.59 and the Price/Book (PB) ratio is 2.76.
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.