84.74 USD
-0.08 (-0.09%)
84.74 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- CTSH had a positive operating cash flow in the past year.
- CTSH had positive earnings in each of the past 5 years.
- CTSH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 10.57%, CTSH belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- 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.
- 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.
- The Average Return On Invested Capital over the past 3 years for CTSH is significantly below the industry average of 28.99%.
- 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.
- Looking at the Operating Margin, with a value of 15.70%, CTSH belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
- In the last couple of years the Operating Margin of CTSH has remained more or less at the same level.
- CTSH has a Gross Margin (34.06%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for CTSH has been reduced compared to 5 years ago.
- Compared to 1 year ago, CTSH has a worse debt to assets ratio.
2.2 Solvency
- CTSH has an Altman-Z score of 7.58. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
- CTSH's Altman-Z score of 7.58 is amongst the best of the industry. CTSH outperforms 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.
- With an excellent Debt to FCF ratio value of 0.22, CTSH belongs to the best of the industry, outperforming 89.77% 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.
- With a decent Debt to Equity ratio value of 0.04, CTSH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.58 |
ROIC/WACC1.65
WACC9.04%
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 Current ratio of 2.36. This is in the better half of the industry: CTSH outperforms 67.05% of its industry peers.
- A Quick Ratio of 2.36 indicates that CTSH has no problem at all paying 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
- CTSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.90%, which is quite good.
- Measured over the past 5 years, CTSH shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
- The Revenue has been growing slightly by 7.44% in the past year.
- Measured over the past years, CTSH shows a small growth in Revenue. The Revenue has been growing by 3.29% on average per year.
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.
- 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
- 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
- A Price/Earnings ratio of 16.49 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 27.47, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.80 indicates a correct valuation of CTSH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 75.00% of the companies listed in the same industry.
- CTSH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CTSH is valued a bit cheaper than 79.55% of the companies in the same industry.
- 75.00% 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 | 15.43 | ||
| EV/EBITDA | 10.23 |
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)1.3
PEG (5Y)4.71
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 0.43. 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 1.89.
| 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
- 28.62% of the earnings are spent on dividend by CTSH. This is a low number and 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%
84.74
-0.08 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners104.24%
Inst Owner Change0.17%
Ins Owners0.1%
Ins Owner Change-0.91%
Market Cap40.90B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts72.94
Price Target88 (3.85%)
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 | 16.49 | ||
| Fwd PE | 14.8 | ||
| P/S | 1.96 | ||
| P/FCF | 15.43 | ||
| P/OCF | 13.89 | ||
| P/B | 2.75 | ||
| P/tB | 6.47 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)5.14
EY6.07%
EPS(NY)5.73
Fwd EY6.76%
FCF(TTM)5.49
FCFY6.48%
OCF(TTM)6.1
OCFY7.2%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.3
PEG (5Y)4.71
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 | 7.58 |
F-Score7
WACC9.04%
ROIC/WACC1.65
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 16.49 and the Price/Book (PB) ratio is 2.75.
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.