77.71 USD
+0.66 (+0.86%)
77.71 USD
0 (0%)
Taking everything into account, CTSH scores 7 out of 10 in our fundamental rating. CTSH was compared to 86 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. This makes CTSH very considerable for quality investing!
1. Profitability
1.1 Basic Checks
CTSH had positive earnings in the past year.
In the past year CTSH had a positive cash flow from operations.
CTSH had positive earnings in each of the past 5 years.
Each year in the past 5 years CTSH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.57%, CTSH belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.28%, CTSH is in the better half of the industry, outperforming 76.74% 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 88.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTSH is significantly below the industry average of 29.77%.
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
Looking at the Profit Margin, with a value of 10.20%, CTSH is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
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 82.56% of its industry peers.
CTSH's Operating Margin has been stable in the last couple of years.
CTSH has a Gross Margin of 34.06%. This is comparable to the rest of the industry: CTSH outperforms 50.00% 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 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.
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.
CTSH has a worse debt/assets ratio than last year.
2.2 Solvency
CTSH has an Altman-Z score of 7.15. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.15, CTSH belongs to the top of the industry, outperforming 87.21% 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.
With an excellent Debt to FCF ratio value of 0.22, CTSH belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that CTSH is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.04, CTSH is doing good in the industry, outperforming 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.15 |
ROIC/WACC1.72
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.36, CTSH is doing good in the industry, outperforming 70.93% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
CTSH has a Quick ratio of 2.36. This is in the better half of the industry: CTSH outperforms 73.26% 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.
Looking at the last year, CTSH shows a small growth in Revenue. The Revenue has grown by 7.44% in the last 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
Based on estimates for the next years, CTSH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y12.32%
EPS Next 2Y9.73%
EPS Next 3Y9.5%
EPS Next 5Y9.23%
Revenue Next Year6.81%
Revenue Next 2Y5.76%
Revenue Next 3Y5.74%
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 15.12.
74.42% of the companies in the same industry are more expensive than CTSH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CTSH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.59, 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 77.91% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CTSH to the average of the S&P500 Index (36.59), we can say CTSH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
80.23% of the companies in the same industry are more expensive than CTSH, based on the Enterprise Value to EBITDA ratio.
CTSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 9.25 |
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)1.23
PEG (5Y)4.32
EPS Next 2Y9.73%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
CTSH has a Yearly Dividend Yield of 1.71%. 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 2.06. CTSH pays more dividend than 89.53% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, CTSH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of CTSH grows each year by 8.46%, which is quite nice.
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
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 2Y9.73%
EPS Next 3Y9.5%
77.71
+0.66 (+0.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change1.44%
Ins Owners0.1%
Ins Owner Change0.97%
Market Cap37.51B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts72.35
Price Target86.62 (11.47%)
Short Float %6.12%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend1.21
Dividend Growth(5Y)8.46%
DP28.62%
Div Incr Years5
Div Non Decr Years7
Ex-Date
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)-2.06%
PT rev (3m)-2.91%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)1.4%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.8 | ||
| P/FCF | 14.15 | ||
| P/OCF | 12.74 | ||
| P/B | 2.52 | ||
| P/tB | 5.93 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)5.14
EY6.61%
EPS(NY)5.72
Fwd EY7.36%
FCF(TTM)5.49
FCFY7.07%
OCF(TTM)6.1
OCFY7.85%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.23
PEG (5Y)4.32
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 | 7.15 |
F-Score7
WACC8.67%
ROIC/WACC1.72
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 Y12.32%
EPS Next 2Y9.73%
EPS Next 3Y9.5%
EPS Next 5Y9.23%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
Revenue Next Year6.81%
Revenue Next 2Y5.76%
Revenue Next 3Y5.74%
Revenue Next 5Y4.89%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year28.81%
EBIT Next 3Y13.14%
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
Can you provide the ChartMill fundamental rating for COGNIZANT TECH SOLUTIONS-A?
ChartMill assigns a fundamental rating of 7 / 10 to CTSH.
What is the valuation status for CTSH stock?
ChartMill assigns a valuation rating of 6 / 10 to COGNIZANT TECH SOLUTIONS-A (CTSH). This can be considered as Fairly Valued.
What is the profitability of CTSH stock?
COGNIZANT TECH SOLUTIONS-A (CTSH) has a profitability rating of 7 / 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 15.12 and the Price/Book (PB) ratio is 2.52.
Can you provide the dividend sustainability for CTSH stock?
The dividend rating of COGNIZANT TECH SOLUTIONS-A (CTSH) is 6 / 10 and the dividend payout ratio is 28.62%.